In 2022, DAO might become the next big opportunity for entrepreneurs. During the past couple of years, crypto enthusiasts have collectively invested their money to maximize profits.
Crypto technologies have grown exponentially over the past couple of decades to grab the attention of more crypto investors. The creation of DAO is also one such innovation that has helped several business entrepreneurs access cryptocurrencies and make crypto payments. Furthermore, market analysts and crypto critics believe that the year 2022 will bring forward the full potential of DAOs, as more individuals and businesses will collaborate with such organizations.
What is DAO?
DAO, or decentralized autonomous organization, is a community-led entity with no central authority. It is entirely autonomous and transparent and follows smart contracts to lay the foundational rules, execute the agreed-upon community-led decisions, proposals, and votings. To simply put it, DAO is governed entirely by its members who collectively make crucial decisions about the future of a particular project, such as technical upgrades and treasury allocation.
The part where it attracts the most is its alignment of incentives. It is in the best interest of the community members to be outspoken about their voting decisions and support only those decisions that will benefit the protocol itself.
Why is it important in 2022?
DAO is supposed to become a primary mode or method that can enable businesses to access finance without actually relying on traditional financing and corporate rule-making. As crypto enthusiasts and early investors try to find various ways of inculcating cryptos in businesses, the association with more DAOs can definitely be expected.
Both social and media can fit quite efficiently in an entrepreneurs’ model. By providing the customers with a common interest to discuss will eventually promote brand loyalty and increase customer engagement for a brand.