Using DAOs, anyone, anywhere, can pursue a project for…anything.
One of the earliest use cases for DAOs was project funding. Individuals with unique ideas can develop a DAO for their project, and interested community members can donate funds to encourage the expansion and execution of that vision.
The purpose of these DAOs is to encourage the constant development of new, innovative projects, leaving room to explore, improve, and evolve.
Anyone can create a Community DAO as a way to network, socialize, and collaborate with like-minded members. For example:
A funding DAO collects funds from a large group of people to raise money and immediately spend it on some item or cause. For example:
The protocols behind DAOs improve the nature of fundraising altogether.
All of the funds collected by the DAO are stored within the DAO itself, rather than being at the disposal of a single individual. The funds are only released when a proposal is approved by the majority of members. This process improves the security of fundraising efforts by inhibiting the potential for scams, extortion, or fraud.
Investment DAOs are an opportunity to pursue bigger, bolder investments that were impossible to attain alone — with barely any limit on what you can do.
They are a democratized investment tool where members pool their capital and pursue investment ventures as a team. While traditional investment firms are elitist, the inclusive nature of DAOs means that their investment opportunities are open to anyone, anywhere.
Investment DAOs let us participate in what we never thought possible, like buying a copy of the constitution or investing in an entire NBA team. For example:
DAOs have the tools to support entire corporations. Entrepeneurs who are interested in new forms of governance might choose to run their business as DAOs for two reasons:
Whereas traditional organizations adopt a top-down hierarchy, DAOs do not have bosses, managers, or CEOs making decisions on behalf of others. DAO members work together to make decisions and vote on proposals. Everyone has a voice.
Whereas traditional companies rely on outside investors who might manipulate company decisions for their own profit, DAOs align financial contributions with governance rights. When you purchase a DAO’s token, the DAO receives funds and you receive voting rights. If the DAO flourishes, the value of those tokens will increase, and token holders will be rewarded.
DAOs are highly secure thanks to their smart contract framework, so they can easily be used to store your digital assets and keep them safe. When you transfer funds into your Locker DAO, they cannot be moved or used without authorization from the member(s) via a proposal.
DAOs can be used as a personal safety deposit box. To do so, create a DAO wherein you are the only member, and transfer your funds inside.
No one will be able to access your assets unless you approve their membership.
DAOs can be used to safely share funds with family. To do so, create a DAO wherein you and your family are the only members.
No one else will be able to access your family's assets, and no single family member will be able to withdraw the funds without the entire family's approval.