Social DAOs and the Connection of NFT Collections
Decentralized Autonomous Organizations, abbreviated as DAOs, have reinvented the concept of corporate organization, which ranges among the scopes of boards to the world’s largest corporations.
Decentralization, the concept that binds the blockchain technology, presents the dynamics of a DAO. DAO takes up the concepts of decentralization across companies and corporations. As DAOs developed and gained traction within the global ecosystem, different professions and platforms initially adopted DAOs as their software-enabled organization. A similar case was observed across the social networks, which Social DAOs highly influenced.
The primary goal of a Social DAO involves bringing like-minded people across a single platform, which are coordinated across a token to set up a value within the digital ecosystem. As communication and social networks have been essentially bringing closer through Internet, Social DAOs provide a new meaning to the complete concept and organize an online community across a token. This provides the members of the Social DAO to create a valued community.
Similar to keeping a token as a center of attention within a Social DAO, the world has witnessed multiple platforms adopting NFTs as the mechanism for introducing the users to the broader community involved with the platform.
Purpose Of Social DAO’s
The general concept of Social DAOs interacting through NFTs brings up the narrative of collective ownership of an asset, i.e., NFTs in this case. This relation of DAOs helping NFT communities offers them the option of community governance on a better scale.
This can effectively guide fans and creators to devise the future and decide on the project’s profitability. The existence of Social DAOs has promoted another use case within the NFT community. NFT Creator Collectives, designed under a group of NFT creators, help out an NFT project in fundraising, marketing, and community development. This can be highly beneficial for the success of an NFT project.
Social DAOs still have a long way to go, where platforms are required to recognize the models which are effective qualitatively and quantitatively. However, considering the rapid rise in the NFT community development, this indeed represents a powerful social network that can raise millions under NFTs.
It has been observed that DAOs hold multiple use cases within the NFT industry. There are different lines of actions that NFTs and DAOs can take up to develop the digital community in a better way. We might witness Social DAOs being an integral part of every successful NFT project in the future.