The Core of Metaverse Governance: How Does A DAO Runs?
2020 is the year of DeFi, 2021 is the year of NFT, and the possibility is quite high that 2022 Metaverse will be the next breakpoint in the decentralized technology world. For the Metaverse, decentralized autonomous organizations (DAO) can build a relatively perfect model of symbiosis, including Metaverse assets and NFT, which will serve as the basis for users to earn an ecosystem through gameplay.
With the P2E (play to earn) mode, Metaverse players will be rewarded for their time, energy, and skills invested in a DAO that can potentially help them pay their bills, support their families, and even change their lives. Unlike in other corporation models, players who truly contribute to their organizations in a DAO receive fair rewards.
2022: As the DAO
Last year, DAOs experienced strong growth in both quantity and quality, as did the number of assets managed by DAOs. Infrastructure applications supporting DAO operations are maturing. DAO is an organization built by developers to automate decision-making to facilitate communication in the crypto age. Under subdivision, elements of the DAO are divided into community, HR, engineering, PR/marketing, product, finance, and business development departments.
Last year, DAO contributed significantly to the crypto business. The creation of the U. S. Constitution DAO is a major move. By contrast, hundreds of DAOs currently manage billions of dollars worth of assets. Project types include developer DAO, Investment DAO, Social DAO, Protocol DAO, Collector DAO, Service DAO, Grant DAO, and DAO operating systems.
The weaknesses of DAOs have been holding back the industry’s prosperity, especially as some DAOs have limited and disrupted the influx of investor traffic due to their own compliance needs. Of course, other risks DAOs face include lack of regulatory transparency, lack of coordination, fragmentation of smart contracts, and the risks involved in sustainability.
In 2022, more teams will address the above shortcomings by bringing regulatory clarity to DAOs. A more ideal DAO operating model could use capital management tools to develop infrastructure and develop more efficient operations. This is critical for DAOs to establish their dominance. All in all, DAO, with its diversity and wide range of application scenarios, has the potential to generate higher returns this year.
The DAO will be transformed into the Metaverse Lie Win Club
As an open ecosystem, DAO will drive the “X-to-earn” model of the Metaverse, where games and learning can benefit at the same time, which will make current production models more flexible, smoother, and more fun. But for most DAOs, it still takes a considerable amount of people to get a return.
Metaverse has transformed its working model into a “shared” model, which will further free up users’ time for more flexible passive income generation in the future. “X-to-earn” does not take up the user’s essential work or time on any other DAO. The on-chain reputation system will monitor the work of DAO users: data contributions, shared history, token holdings, etc., above these can be used to predict and determine which DAO members are trustworthy. The better the user’s reputation in the Metaverse, the higher the long-term rewards.
Metaverse uses data sharing to create revenue opportunities for users, and has incredible potential to build a Metaverse space-time through the power of the decentralized network and people’s collective wisdom. DAO takes advantage of the rarity and accessibility of NFT to make asset recognition and value transfer in the virtual world simple and smooth. Using DAO governance mechanism and reputation system to determine who resources are allocated to avoid elite monopoly and create a fair and healthy Metaverse space for people.
Long-term community co-construction and shared value ecology
It can be boldly predicted that starting from 2022, both the market and players will prefer the GameFi + DAO mode of games. Introducing DAO governance model into Metaverse will build a trust foundation for long-term community co construction and shared value ecology will have, and DAO governance will become basic standard of on-chain projects.
Users will be able to use DAO to improve the decision-making ability and execution ability of the project, so let DAO perceive the collective will of members, make decisions gently and smoothly, motivate members with the smallest trust cost, and realize the collective goal of DAO, as a way to avoid the project from giant whale, minimize the risk of project developers to change protocols.
In conclusion, it can be said that the future of DAO is the core entrance to the GameFi and the Metaverse. In the future, DAO will be widely adopted by DeFi 2.0 and related DAO organizations to consolidate GameFi’s core position and promote richer game content and more stable game operations. By DAO, we could continue to empower GameFi in the operation and provide continuous positive feedback to the game. And DAO can also suppress large speculators and giant whales which can promote the formation of a better community atmosphere.
DAO + GameFi will form a new world of Metaverse that we look forward to.