Struggling to find the best DAP tokens? Here’s the stop! Check out these top DAO tokens now with all the details and choose the best one!
The constant growth of new trends in the blockchain and crypto space brings many promising opportunities. Enterprises and people all over the world are recognizing the potential of blockchain and crypto as new advancements such as DeFi become quite noticeable. At the same time, we can also witness the rise of new tools to support the newly evolving solutions related to crypto.
The top DAO tokens are an obvious example of using technological advancements to drive DeFi governance. They are unique internet-native organizations that allow governance privileges to the community members. As the attention around decentralized finance continues to grow, the role of DAOs has also become a focal point.
If you want to find the best DAO project, then you have to go through various options. However, it is also important to note that every DAO token existing in the market right now is not the best choice for you. The following discussion offers you insights into the top ten DAO tokens, which have garnered a lot of hype in the crypto space.
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Defining a DAO
Before you move towards a DAO tokens list, you need a brief overview of DAOs and their work. DAO or Decentralized Autonomous Organizations are basically social organizations embodied by rules integrated into a transparent computer program, under the control of organization members. The DAOs are under the control of organization members without any centralized intervention. You can assume DAOs as internet communities of individuals with shared interests. The members come together to build the organization, establish the objectives and set the rules for funding the DAO mission.
So, what is DAO token? How is it significant for the working of a Decentralized Autonomous Organization? You can find the answers to these questions through a brief overview of the working of DAOs.
How Does a DAO Work?
The working of DAOs can provide the essential insights you need to identify the best DAO examples with value. One of the foremost aspects in the working of DAOs is the creation of rules through community voting by leveraging smart contracts. DAOs use smart contracts for establishing the basic rules for their operations, which cannot be changed without voting by core community members. So, how do the members exercise their voting rights in the popular DAO projects you see today? This is where you would come across the need for DAO tokens. Members have to purchase the native token of the DAO, which are basically cryptocurrencies associated with the project.
All the token holders get voting rights in the community according to the share of their holdings. The DAO tokens allow ownership in the equity of the DAO alongside shaping up its future growth. With the clear answer for “What is a DAO token?” you might wonder about its potential uses. As of now, many DAO tokens are used for diverse purposes, including charity, fundraising as well as purchasing NFTs.
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Here’s the List of Best DAO Tokens
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The basics of DAO, their working, and the role of DAO tokens provide the ideal basis for identifying the top DAO tokens with potential. However, you may have a tough time going through the multiple alternatives among DAO tokens available right now. Here is an outline of the top picks among DAO tokens you can take into consideration.
The most popular decentralized crypto exchange in the world has also introduced the biggest DAO in the crypto space. Uniswap launched its governance token in September 2020 and established its identity as an influential DAO. The primary functionalities of Uniswap as the best DAO project focus on community-controlled DeFi utility for Uniswap users. For example, the voting by Uniswap for reducing trading fees in certain stablecoin swaps resulted in exponential growth of volume. Therefore, one can notice how Uniswap clearly has a stronghold over the DeFi market as of now.
Uniswap DAO has garnered headlines in the crypto community for its broader implications. For example, a proposal on Uniswap in May aimed at using almost $40 million from the project’s treasury to establish political safeguards for DeFi in general. The proposal never saw the light of the day as the group favoring the proposal were delegates from a notable investment firm. As of now, Uniswap has a market capitalization of $9.94 billion with a popular DAO token in UNI.
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Another top mention in a DAO tokens list would obviously refer to Maker. It focuses on introducing real-world assets into the crypto domain. As a matter of fact, the DAO Maker token aims to evolve into the largest central bank for DeFi. It also focuses on creating the largest decentralized stablecoin DAI. Maker has shown promising potential as the largest central bank in the DeFi with its algorithmic stablecoin DAI. The market capitalization of the stablecoin has jumped to almost $9 billion.
Interestingly, the DAO Maker token is exploring new territories in the crypto industry by facilitating the onboarding of real-world assets. Owners of the governance token of Maker DAO voted for using tokenized versions of short-term trade receivables, freight-shipping invoices, revenue-based small business loans, and agricultural real estate.
The project passed the proposals and leveraged Centrifuge for tokenization of non-crypto assets. In collaboration with Centrifuge, Maker has started exploring new dimensions for adding more real-world assets into the crypto sector. With a market cap of almost $2.12 billion, the DAO Maker token surely has some promising roads to cover ahead.
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The next top entry among popular DAO projects would bring the name of BitDAO. It is the biggest DeFi treasury in the world, with almost $2.5 billion investments in various DeFi projects. The reputation of BitDAO in the DAO ecosystem is quite unique and relies largely on its innovative capabilities.
It has successfully accumulated a treasury of over $2.5 billion and has a market cap of $1.12 billion. Most important of all, BitDAO is one of the promising DAO examples where big investors have shown interest. For example, a Singapore-based crypto exchange, ByBit, has dedicated almost 0.025% of the total trading volume to BitDAO.
The future of BitDAO in the DAO tokens list seems to be quite promising as it ventures into DeFi investments. At the same time, BitDAO can also start rolling out grants alongside encouraging token swaps for diversifying their treasury. The DAO is presently focused on creating tools that can enable the use of DAO treasury for lending, staking, and other activities.
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You could not go through a guide on “What is DAO token?” only to miss out on Aragon. It is another decentralized autonomous organization with a specific focus on allowing others to introduce their own DAOs. Aragon focuses on empowering clients to connect with anybody from any location within a DAO infrastructure. As of now, Aragon has almost 1500 DAOs which have almost $350 million locked in all of them.
The DAO token of Aragon, ANT, enables token holders to express their agreement or disagreement on the choices influencing operations. Aragon offers one of the top DAO tokens, which allows token holders to create or join Aragon-based DAOs. On top of it, the Aragon Fundraising project also focuses on empowering DAO members to collect fundraising for their organization. With almost $371.38 million in terms of market capitalization, ANT is surely one of the top entries among DAO tokens.
Dash is another example of how the best DAO project can become a driving factor for future of DeFi. It is a decentralized digital payment project focused on offering faster transactions in comparison to Bitcoin. The utility token of the DAO is DASH and has shown promising growth in recent times.
Almost 10.27 million DASH tokens are already in circulation. Most important of all, the $1.41 billion market capitalization of Dash present its DAO token in a favorable light. In addition, Dash has also been capitalizing on exceptional prospects for growth, particularly with high demand for anonymous transactions.
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You could also find the name of Compound in a discussion about DAO examples, especially for its reputation in DeFi. Compound is a DeFi project known for offering crypto lending solutions to users alongside offering passive income for users. The utility token of Compound, COMP, has gained a formidable reputation among DAO tokens with price elevations. As of now, the market capitalization of Compound lies at $1.22 billion, thereby indicating a strong foundation for its growth.
The next notable highlight in a DAO tokens list would bring Curve DAO to the front. It is a decentralized stablecoin trading platform with the native token CRV. Users can purchase the network’s tokens through many popular crypto exchanges such as Binance. The growing use of stablecoin trading, among other factors, has been responsible for driving the token’s market cap to almost $2.31 billion.
As the automated market maker system, Curve DAO manages liquidity and focuses on swapping assets with same value. If you look closely, the Curve DAO token empowers the Curve financial platform in general. The capabilities of Curve DAO as an automated market maker and liquidity provider open up new prospects for its applications in future of DeFi.
Read More: What are the different types of Stablecoins?
Aave is another top name in the DeFi sector with many promising applications. It is an open-source, non-custodial money market platform offering a wide range of debt-based products in a decentralized manner. Developed on the Ethereum blockchain, Aave provides support for Ether, stablecoins, and ERC-20 tokens. Aave allows users to earn passive income on their digital assets by locking them in liquidity pools. The Aave protocol has adopted the DAO model of governance and is one of the best DAO project for managing an innovative money market.
The AAVE governance token allows the privileges for managing and developing the Aave ecosystem. Token holders can stake their tokens in the DAO and manage the risks and rewards collectively. Right now, Aave enjoys a massive market capitalization of $2.97 billion, which can spell many new opportunities for the DAO.
The top mentions among popular DAO projects would also focus on 0x. It is an open protocol for enabling peer-to-peer exchange of assets over the Ethereum blockchain. In April 2021, 0x decided to shift towards the DAO governance model, and thus came 0x DAO. The DAO would primarily focus on controlling the community treasury rather than upgrades to core protocol. The DAO token holders have complete control over treasury funds for driving positive effects for other token holders and the ecosystem.
As an autonomous crypto exchange working through open-source smart contracts, 0x and its native token ZRX has the potential to dominate the DAO space. At the time of writing, the market capitalization of 0x amounted to almost $632.30 million.
Decred is another top platform that comes to mind when you search for the best DAO project according to your needs. The native token of the platform, DCR, works as a cryptocurrency tailored for resolving the scalability issue with Bitcoin. Decred leverages the DAO concept by implementing its native token for empowering the community to vote on the future of the project. Most important of all, Decred is completely decentralized and self-governing, thereby leaving little room for a hard fork.
Another interesting highlight about Decred and DCR coins among other top DAO tokens is the combination of Proof of Work and Proof of Stake consensus algorithms. Such a unique approach helps the network avoid the dominance of large stakeholders or miners on the network. Presently, the market capitalization of Decred is almost $809.30 million, thereby placing it in a good position.
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The overview of different DAO projects showcases how DAO tokens can shape the future of DeFi. You have witnessed crypto lending and staking platforms, liquidity providers, and crypto exchanges in the outline of best DAO projects. Their native tokens help in ensuring that the community gets to vote on the direction of the project.
The popular DAO projects discussed in this project have unique functionalities and will have different roles to play in adoption of DeFi in the long run. With the benefits of autonomy and control, DAO tokens can encourage participation of users in DeFi projects. At the same time, it is also important to understand the dynamics of crypto trends and the market in general for gauging the actual potential of DAO tokens. Learn more about them right now and find the best DAO tokens.
*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!