DAOs have been gaining popularity for their significance in decentralized finance. Dive in to learn about the best DAO applications and their importance.
The substantial levels of hype around the rise of a web3 landscape have a solid backing. You can witness new web3 projects such as DeFi and NFTs taking the market by storm. Earlier, the crypto ecosystem introduced flexible prospects for developing decentralized applications aimed at transforming the conventional operations and processes with decentralization. As a result, Decentralized Autonomous Organizations (DAOs) started gaining momentum for their role in the governance of blockchain protocols and decentralized applications.
The search for the best DAO applications is an evident phenomenon for the web3 ecosystem. With the benefits of decentralized governance, DAOs have presented many promising implications for the crypto space. What are some of the popular DAO applications you should look out for right now? The following discussion offers you an answer with the list of notable DAO applications in the crypto market right now.
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Why Should You Think of DAOs?
The first thing you need to know before an outline of the top DAO applications is the reason for the same. Decentralized Autonomous Organizations or DAOs present a new and effective way of creating an organization where members will control the management of the company. Members of the DAO could use DAO tokens to exercise their voting rights in the community. At the same time, DAOs also facilitate the prospects for the active participation of members in the decisions regarding the future of the organization.
In addition, the attention to the best DAO apps has been increasing profoundly in recent times with the emerging DAO variants. Today, you can find DAOs for art, social events, music, trading, gaming, sports, and many other use cases. However, the growing supply and variety of DAO applications in the market can be quite confusing for anyone.
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What are the Popular DAO Applications Right Now?
The diverse use cases of DAOs alongside the positive value advantages associated with community involvement are profound reasons for adopting DAO applications. However, you need guidance regarding the popular DAO apps in the market right now. On the other hand, many of you might be wondering, “What are DAO apps?” before you decide on a specific DAO app.
As the name implies, DAO apps help you access a decentralized autonomous organization. The definition oversimplifies the criteria for choosing a DAO application, as all of them can be used for decentralized governance. Here is an outline of the top DAO apps you should follow right now if you are trying to get on the DAO bandwagon.
1. Curve DAO
Curve DAO is one of the first examples of the best DAO apps you should look out for in 2022. It serves as the governance framework for Curve Finance, a decentralized exchange using the Automated Market Maker model for offering liquidity. Interestingly, Curve Finance serves as a decentralized exchange for stablecoins, thereby facilitating better stability. The Curve DAO token helps users with easy stablecoin swapping. In addition, the Curve DAO token also offers a reliable option for liquidity providers seeking methods for earning interest fees.
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2. Maker DAO
The most popular example in discussions on “What are DAO apps?” obviously draws MakerDAO into the picture. It is an Ethereum-based protocol that issues DAI stablecoin. The DAO utilizes a combination of autonomous feedback mechanisms and Collateralized Debt Positions to offer a viable replacement to central bank currencies.
Users must maintain a minimum amount of collateral in their CDPs to avoid liquidation. The CDPs are basically debt positions in DAI and have been associated with Ethereum-backed collateral. When the value of collateral reduces lower than a specific threshold, the DAO liquidates the CDP. Subsequently, the Maker system pays off the full debt owed by the user.
Another promising entry in the best DAO applications right now would point at Uniswap. It is the world’s biggest decentralized exchange, especially in terms of the trading volume. In addition, Uniswap also holds the rank of the top DAO with the highest amount of funds in its treasury. The Uniswap DAO was launched in September 2020.
As of now, the DAO has distributed more than $1 billion worth of UNI tokens among the development teams, advisors, community members, and investors in the DEX. The Uniswap DAO has more than 300,000 members with voting powers over governance protocols, exchange fees, and the treasury. Another significant feature of the Uniswap DAO points to the facility of delegating votes to other users.
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4. Decentraland DAO
The list of top DAO applications must also include references to the popular metaverse DAO right now. Decentraland is one of the biggest metaverse platforms right now, especially in terms of market capitalization. The Decentraland DAO enables the MANA token holders to participate in the governance of LAND auctions and content controls. In addition, the Decentraland DAO allows MANA token holders to govern other traits in the virtual worlds.
Most important of all, it is important to note that the structure of the Decentraland DAO is more complicated than others. For example, you can find three unique branches in the DAO such as the Security Advisory Board, the Committee, and the community. As of now, the powers of the community in Decentraland DAO focus only on voting for updates.
5. Yield Guild Games
Yield Guild Games or YGGs is also another promising entry among top DAO apps for the NFT landscape. YGG is basically a decentralized autonomous organization focused on the virtual world of NFTs. The DAO has successfully developed a massive community of players as well as investors. Users in the DAO focus on generating income by leveraging NFTs in blockchain-based games and virtual worlds.
The Yield Guild Games DAO serves as a platform for game developers and publishers to obtain funding and support for developing and deploying their games on the platform. In addition, the DAO also garnered headlines after leading a fundraising campaign for victims of Typhoon Odette in the Philippines.
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6. IBC DAO
IBC DAO is one of the most prominent additions to any list of top DAO apps in the web3 ecosystem. The crypto industry has been expanding with many innovative developments, and play-to-earn games are one of the most promising examples of the same.
As the applications of play-to-earn games and the metaverse intersect in the continuously evolving blockchain gaming ecosystem, DAOs like the IBC DAO can make an impact. IBC DAO is a community focused on reducing the barriers of entry to players alongside facilitating a consistent source of income. The IBC gaming guilds use a sub DAO approach for empowering the play-to-earn economy through support for early-stage projects.
7. Merit Circle
The next prominent example in the best DAO applications you should try in 2022 would point to Merit Circle. The primary focus of the Merit Circle DAO is on funding the best options in play-to-earn games. Subsequently, the DAO also offers the necessary support for the games to grow. The community looks out actively for new gaming projects and offers the necessary funding for starting off the projects. Token holders can receive rewards for staking in play-to-earn gaming projects upon the success of the game.
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8. Gnosis DAO
The outline of top DAO applications would also include names such as Gnosis DAO. The decentralized platform leverages Ethereum smart contracts and allows the functionality for creating prediction markets. Developed with the decentralization, transparency, and immutability of blockchain, the Gnosis DAO offers a solid instrument for creating an open and accessible forecasting tool. Gnosis DAO helps any individual create new markets alongside participating in the markets of their choice.
9. Aragon DAO
Some of the most notable examples of top DAO apps would also draw the limelight toward Aragon DAO. It offers all the necessary tools you need for creating an Ethereum-backed DAO. The tools offered by DAO have the potential to fuel the popularity of DAOs as an efficient instrument for governance. You can find different types of tools for starting a DAO, such as governance, accounting, fundraising, and voting tools with Aragon DAO. As one of the pioneers in the DAO space, organizations using Aragon DAO can enjoy the benefits of complete autonomy.
10. Flamingo DAO
People interested in diving into the web3 landscape must also take note of DAO applications like Flamingo DAO. It is an NFT-centric DAO that focuses profoundly on exploring new investment opportunities for blockchain-based assets. The DAO actually serves as a real-time curated list of the top NFTs investors can buy or sell. Flamingo DAO also empowers creators and artists with privileges for establishing the rules for creating and using their assets.
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The detailed overview of the different entries in the list of best DAO applications shows the variations in their utility. DAO is not all about entrusting the power of managing an organization to the members. On the contrary, the different DAO applications show how the power of DAOs can serve many other use cases.
For example, the Uniswap DAO serves as a protocol DAO with undeniable significance in the platform’s governance. On the other hand, Yield Guild Games DAO focuses on investments for new play-to-earn gaming projects. Therefore, you must be careful about the objectives for which you need a DAO. Discover the world of DAOs in detail and make the most of their interesting benefits now.
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*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!