Earlier, Xiao Bian has introduced what DAO is. Contrary to the traditional organization-centered structure, DAO uses smart contracts to regulate projects and manage the ecosystem in a decentralized way. Everyone in the blockchain ecosystem can participate in decision-making and operate in a "direct democratic" way. So what are the advantages of DAO? What are the benefits of joining DAO for collectors? Next, let's take a look.

What are the advantages of DAO?

1. High transparency

Because DAO's balance sheet is on the public blockchain, it is completely transparent at all times, accurate to every transaction. In the DAO, everyone can check all actions and capital inflows, which can reduce the risk of corruption and censorship.

2. Easier to globalize

The fortress of members entering the DAO organization is low, and everyone is allowed to work under the same conditions according to a set of specifications and standards suitable for all parties, without being constrained by their location. Fundamentally, one of the main reasons for establishing a DAO is to provide a fair platform for the construction and operation of the organization. Therefore, compared with enterprises, DAO organizations are generally easier to achieve globalization. In order to attract top members, DAOs with similar responsibilities may need to compete for members, and are encouraged to be as transparent as possible to reduce the collective rent-seeking costs.

3. The whole organization participates in voting

The DAO regulates a decision by allowing everyone in the organization to vote on their concerns. Therefore, the DAO will not ignore or eliminate members' suggestions, and will ensure that all votes are calculated and indicated with a certain degree of transparency.

4. Non-tamperability of rules

In DAO, you can use code to ensure that the standard is suitable for everyone, without exception. Without the consent of voters, a set of clear rules within the DAO organization cannot be forged, which can ensure the fairness of governance and the efficiency and transparency of the DAO organization.

What are the benefits of joining DAO for collectors?

1. Identity symbol, community building credibility

DAO specific nfts are obtained through collection, air drop and other forms. These nfts usually represent people's status symbol in the DAO. They become the exclusive members of the organization with their own DAO property, and become the group of people who have the right to speak in the DAO community. You don't need to be an encryption expert or developer. In fact, DAO must have a variety of skills and knowledge base, such as writers, designers, salesmen, cameraman, translators, and community leaders. Even if you are a novice, you can also find the most suitable positioning in the DAO ecosystem. Assist the development of DAO through their own skills, discussion, communication and other forms, become KOL (key opinion leader) in the DAO, and create their own community reputation.

2. Participate in brand image or product IP development plan

Every time the DAO plans are announced, it will take full advantage of the advice and attitude of the DAO members. For example, if you join a DAO of IP animation nft, all members may have a heated discussion about the image, background story, features, target groups, market prices and other details they like. The DAO will fully solicit the suggestions of the community members, and strive to develop the project in the direction that most of the DAO members expect. The round-table discussion will make the DAO products enter the market in a more mature structure, and the probability of success will be greatly improved. This kind of satisfaction is a proud and interesting thing for all DAO members.

3. Reward conversion of contribution value

The DAO members will share profits with the DAO, and all the DAO members can provide suggestions or ideas for the governance proposal of the DAO project, assist the improvement of the key projects of the DAO, and provide resources for new members through active discussions According to maintaining their own activeness and giving things beneficial to the development of DAO. Moreover, this is not a heavy job. An open DAO economy is more flexible and smooth than our customary nine-to-five. The time you participate in the DAO depends on your intentions. Even if you only dedicate a little time or ideas after lunch, you are also a beneficial DAO member. Generally, DAOs will distribute their original or regenerated nft ownership or part of the profits of the DAO project to the beneficial participants.

Having said that, I believe you have a certain understanding of the advantages of DAO and the benefits of joining DAO for collectors. In general, as a concept in the early stage of development, DAO is bound to encounter various difficulties and challenges in its development. Naturally, not all DAOs can get on the right track. They will also have problems such as decision-making failure, free riding, supervision and security. So when we look for DAOs, we also face certain risks. But even so, you can still clearly feel that the overall development and renovation of DAO has been in progress. It can be said that the emergence of DAO has a strong destructive effect on the traditional organizational structure. With the passage of time, we believe that more and more new businesses will emerge in the form of DAO.