In May 2021, a new law in the US allows Decentralized Autonomous Organizations(DAOs) to be recognized as legal entities. The announcement went viral among the Entrepreneurs who want to build a new kind of business based on Blockchain Technology. Correspondingly, the US attracts many DAO startups and becomes the desired place to venture in. In this blog, we are going to discuss the types of DAO business ideas one can start in the next year 2023.
Here, we made the top 10 list for DAO use cases.
1. Decentralized Exchange
Decentralized Exchange(DEX) is a popular DAO model where people can buy/sell cryptocurrencies without central authority. There are no hidden commission fees for the transactions happening inside. Because all the rules and regulations are governed by smart contracts. No one can change the contract without a decision making voting process. There are many DEX platforms running sustainably since it involves no complex hierarchical structure.
For the Entrepreneurs who choose DEX as their DAO model, you should deploy the reliable decentralized exchange software package that contains all the essential components like smart contract, wallet API, payment gateway, swapping engine and more. DEX has its own set of business models like smart contract execution fee, coins listing fee etc.
2. Virtual World
Virtual world applications get their idea validation when the Metaverse becomes hyped up. On account of the big organizations initiatives towards Metaverse development, AR/VR applications are booming up. Surprisingly, you can create a Metaverse world and operate them under DAO protocol.
This can create a world of opportunities for business entities and people to apply their thoughts in molding the Metaverse ecosystem. DAO’s transparency, and easy governing policy will make a new shift in how Metaverse is going to be structured for the future.
Currently, fundraising has been managed, distributed and controlled by the central authorities. The people who contributed have only a posterior view of where the money is spent. There is no complete transparency report followed in crowdfunding platforms as of now. DAO sorts this problem out with the clear formula of “Trust, Governance and Decision making”.
In blockchain based crowdfunding development, the DAO smart contract allows all token holders to be allowed in the process of how money should be distributed. It’s done via the voting process. The projects that get the maximum votes get the funding immediately and the remaining get aligned in the pipeline.
4. NFT collector
NFT has been the most expensive asset of all time due to their non-fungible nature. Back in olden days, one should spend a lump sum of money to collect the NFTs. But not anymore. Due to the invention of NFT collector DAO, people with any income group can get fractional NFT for the money they are willing to invest.
The group of crypto natives can combine together via the DAO model and buy the NFT collections via shared investment. Each member in the DAO group has the equity share whren the NFT value is steering up. NFT collector DAO has stormed the NFT landscape already with its configurable governance protocol.
5. Search Engine
Decentralized search engines are the new form of DAO invention for accessing the information without a single point of control. In traditional search engines, the user data is stored, operated by the companies and executed for advertising schemes. But the DAO based search engines let the peer users have control on their search information.
P2P nodes are connected through blockchain technology and search engine operation is carried intuitively through DAO smart contract. User information can be handled by private keys which are secure and reliable.
6. Sports DAO
Sports DAOs are the community led by the sports fans. This type of DAO allows the fans to have their own voice in the decision making process of a sports team. It brings fans and sports enthusiasts together and adds a democratic ownership. To carry out the process like player selection, voting is carried inside the DAO and decisions will be taken accordingly.
Usually, the sports team has been controlled by the board of directors in the respective council. They own the access to the team's merchandise benefits, earning potentials, and advertising opportunities. When Sports DAO is in place, the sports fans not only have the perks of voting but also are provided with earning rewards.
Development, Design, Auditing, Recruiting, Management services are in more demand as the need for those services keep increasing. To solve this raising demanding workforce, services DAO can be the better answer. In Service DAO, contributors will collaborate on a project and get rewards in return. There is no central authority or agencies needed to outsource the services.
Every service category can be grouped into separate DAOs and the contributors get involved actively to solve the problem. This open culture of the workforce encourages people to get more productive in their work. Moreover, in addition to salary, the equity of the DAO is equally split up.
Entertainment DAO development is the lucrative business idea one can easily tap into. It is the member owned communities that carry out the music distribution, copyright protection, music monetization, music production and featuring artists to get maximum exposure.
It became the place of heaven for production houses, independent content creators to have their monetization policies easily. All these digital activities like marketing, sponsorships are carried seamlessly without paying hefty commission to the middleman.
9. Gig Economy
Gig economy is not the new term for technology native people. But post pandemic, freelancing culture & work from benefits encourages people to adapt to the gig economy more than before. This is the inspiring reason for any crypto entrepreneurs to start the DAO gig economy. It can add more add-on benefits than the traditional gig economy.
In traditional gig platforms, the freelancers have to pay a commission fee in one third. Also, they follow hefty rules and regulations to qualify through the approval. This became the entry barrier for millions of freelancers out there. DAO can figure out all the pain points in the gig economy and helps to shape their future.
10. Social Media
Though social media is invented for voicing out thoughts freedomly, there is a central point of authority. People want to express their ideas without censorship. That’s why Elon musk’s twitter acquisition went viral on the internet.
Social media companies have also tapped the user information to facilitate advertising. More frequently, data breaches have been happening every year as the web 2.0 is more prone to security hacks. This created an urge among business entrepreneurs to solve this problem. Social media DAO came as an answer that brings people's concerns first and lets them control their data.
Related Article - Types of DAO Explained
You may have clear intent on where DAO is heading and how it will affect the traditional tech streams. The pace of DAO is insane like how the internet has changed in the past decade. This is the right time for investing in DAO projects and work on DAO development. If you are an Entrepreneur who is struggling to get your idea implemented in DAO protocol, reach out to our team.
Hivelance is the leading DAO development company having the deep expertise in applying DAO use-cases in all business niches. We are a team with pro strong smart contract developers, blockchain engineers, web3 UI experts, and experienced project coordinators. We can give technical hands to your DAO project development in any case.