How can NFTs boost DAOs?

New ways to connect the ecosystem "wires"

Well, every Monday, the NFTFY team holds a Twitter Spaces to discuss topics related to the NFT world. In the last spaces, the guide subject was about how NFTs can boost DAOs. I chose this topic because I have seen a lot of talks about it, mainly after the NFT.Rio event.

But why DAOs?

Because…

1. DAOs are such a great representation of the entire ecosystem — in the big picture they can express the best thing about decentralization, resource targeting, collaboration and collectively;
2. NFTFY connects DeFi to NFTs, and also we have to evolve a discussion about NFTs and DAOs, since everything (or almost everything) can be related to each other;
3. We can notice a great movement about DAOs: they’re eligible to receive great investments and have amazing ideias but still have problems related to engagement and onboarding;

We’re capable of seeing what can be a greater part of the ecosystem but isn’t yet due some (kinda little) problems.

Source: Giphy

Recently I saw how the RockPool can connect enthusiasts with bluechip NFTs, solving some issues such as the need to buy one NFT very expensive, lack of portfolio diversification and lack of a trustless way of sharing ownership. In the same way, I saw Crowdpad helping artists with price discovery, being the bridge to support social and environmental causes and also being a gateway to connect new artists and their initial sales with the public. So I started to see how NFTs have the power to be a web3 booster beyond being a part of the art and game market.

Firstly, we can mention a great use case about NFTs and DAOs. The first Brazilian DAO, the Bankless Brasil DAO, has a Crowdpad with an amazing NFT inspired by an art called “Os Operários” (The Workers). This artwork is very relevant for the Brazilian scenario because it was produced in 1933 by Tarsila do Amaral, she is one of the most famous artists in the country. The Bankless Brasil Crowdpad makes possible the shared ownership of this amazing art recreation among all the fractions buyers — in addition, this shared ownership makes possible the feeling of collective belonging, which can unite and engage the members. The artwork is being used as a discord header and some members have printed and framed it.

Construtores do Metaverso

This Crowdpad was the first way for this DAO to gather incentives to start operating effectively. That is, it was the kick-off for the beginning of something giant.

Great, NFTs can help in the beginning. But what about the other phases of building a DAO?

Source: Giphy

At this point, we started a deeper conversation and I’m going to list some ideas we had during the Twitter Spaces:

• The use of NFT fractions for governance attributes;
• The RockPool as a way to engage members and share the ownership of a bluechip NFT for example, which makes the study (about the collections) done by many people guide everyone towards a smart-choice;
• NFT fractions as a means of validating membership in the organization, which associates a decentralized ownership with the participating person;
• A new business that can boost a DAO’s vault with NFTs and benefit guilds through RockPool. A curator guild can be formed so that good NFTs can be bought collectively and with that, these curators will receive the curator fee.

These were some of the many topics raised. And the intention of this article is to generate reflection: so, how do you think NFTs can boost DAOs?

It’s important to think about how DeFi connects to NFTs, how DAOs connect to DeFi, how DAOs connect to NFTs, and many more of these correlations. When we connect parts of the ecosystem to each other, we have — as a result — something that flows and is solidly supported in its structures, structures that can be strengthened with each connection.

"A virtuous circle or vicious circle is a complex chain of events that reinforces itself through a feedback loop. A virtuous circle has favorable results, while a vicious circle has detrimental results.

Both circles are complex chains of events with no tendency toward equilibrium (social, economic, ecological, etc.) — at least in the short run. Both systems of events have feedback loops in which each iteration of the cycle reinforces the previous one (positive feedback). These circles will continue in the direction of their momentum until an external factor intervenes and breaks the cycle."

So when we think about boosting the ecosystem, we should think about things that should be part of a virtuous circle. As it should be with Tokenomics, DeFi, GameFi and the relations between NFTs and DAOs.

Comment your opinion please!

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