PLUG Chain: Is DAO the Next Big Thing for 2022?
The cryptocurrency world continues to evolve daily. It seems like every year we get a new crypto concept to be amazed by. After the rave of DeFi, yield farming and Futures trading, more attention has shifted to NFTs and more recently the metaverse. But amid all these evolutions there is the introduction of DAO, which everyone seems to be excited about.
DAO simply means decentralized autonomous organization. Some call it the Blockchain form of traditional organizations. So, there is the question of if we are witnessing the fade away of organizations as we used to know it. DAO is awesome, it allows people with similar interests to come together to form an organization that is highly decentralized, effective, and can raise funds collectively. The engine of DAO is in its “collective decision making” ability, where any change to the rules, purpose and direction of the DAO needs to be voted on collectively by those invested in the project. This helps to prevent dictatorial management and promote collective interest which fosters the growth of the DAO. There are many examples of this effect.
Some Examples of DAO
In recent times, there have been so many instances of Decentralized Autonomous Organizations, with many communities rising for a collective goal and raising funds for such goals through the creation of native tokens. DAO essentially is built for community involvement and two key aspects that drive this; is the use of smart contracts and native tokens. Ownership of the native tokens of a DAO gives users special privileges such as voting rights etc.
This is a DAO associated with Julian Assange, the popular journalist and Wikileaks. The essence of the AssangeDAO is to raise funds for Wikileaks publishing through a dynamic NFT called Clock.
ApeDAO began very recently and is a community of users invested in the Bored Apes NFTs. For instance, in March 2022, many investors and developers tuned into a Twitter space to inaugurate the first-ever board of ApeDAO. Also, in February 2022, there was a spike in ApeDAO’s token price as high as a 7% increase due to a vote in favour to liquidate its NFT collection by the community.
Another recent example is OpenDAO. It is a community to level the playing ground for creators and collectors. Its native token $SOS is described as the token of the metaverse. This is as the OpenDAO community boasts to be building the largest DAO in the Web3/NFT space. The popularity of OpenDAO continues to rise as does its native token.
What is the Relevance of DAOs, Can PLUG Chain Implement it?
From everything we have discussed so far, if you’ve not noticed, DAO is changing the face of community organizations as we know it. Not only are DAOs used for venture capital purposes (such as the LAO), which helps to raise millions of dollars through a decentralized system. But it can also be used to promote publishing in the face of mainstream restrictions as with AssangeDAO. DAO is creating a more secure means to raise funds from people invested in a particular project. So, it beats the traditional crowdfunding procedure.
For PLUG Chain, DAO is very much implementable due to its high tps (transaction per second) and low gas fee. PLUG Chain is said to be the first chain that will achieve up to 10,000 tps processing capacity. While it offers increased performance across chains and reduces chain cost. With these key aspects of PLUG Chain, it would be easy to implement a DAO community, especially due to the highly decentralized and real-world nature of the PLUG Chain.
So, who knows we just might see a PLUG Chain DAO that cuts across multi chains in 2022.