Ethereum is the second largest blockchain, right after Bitcoin. Throughout its evolution, Ethereum has seen many changes regarding energy efficiency, and it has yet to be improved with the users’ help. But as the blockchain has evolved, we’ve witnessed the creation of many significant projects, like NFTs, DeFi applications and DAO (decentralized autonomous organizations).
These applications allow users to get the most out of Ethereum’s smart-contract capabilities and create much more, which is why we’ll talk about some of the best DAO applications you should try now.
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What you'll learn 👉
What exactly are DAOs?
Decentralized autonomous organizations are needed in the Ethereum blockchain because it would be hard to trust if you want to create a group with someone on the internet. But through the DAO’s code, everything is transparent and verifiable by everyone in the organization. There are a few examples of how you could use a DAO:
- To form a charity where you can accept memberships and donations;
- To create a freelance network of contractors who pool their funds for software subscriptions;
- To create a venture fund that pools investment capital;
If you’re wondering why to choose a DAO instead of a traditional organization, there are a few benefits to consider:
- They’re fully democratized;
- Members require voting;
- The votes are tallied;
- The services offered are handled automatically in a decentralized manner;
- All activity is transparent and fully public.
Curve
Curve DAO provides a governance structure for Curve Finance, the decentralized exchange for stablecoins. This exchange liquidity pool on Ethereum is designed for efficiently trading coins and low-risk fee income for liquidity providers. It has been audited by Trail of Bits, meaning that it has almost free vulnerabilities, although it’s still not recommended to supply your life savings to Curve earnings.
Want to know more about the Ethereum blockchain? You can start by checking the Ethereum price, which usually fluctuates because of supply and demand, media coverage and other factors. It has gained popularity and is trusted by users interested in cryptocurrencies.
Maker
MakerDAO is the next example, an Ethereum-based protocol that issues DAI stablecoins. It’s a peer-to-peer system focused on developing technologies that facilitate savings, borrowings and lending functionalities (along with a stable cryptocurrency, DAI). The DAI blockchain has been created to reduce the price volatility within the Maker protocol, meaning that users can generate DAI stablecoins using collateral assets approved by the community.
What can you do with MakerDAO? First of all, it serves as a place for crypto lending functionalities, and its protocol offers a strong base layer infrastructure for developing other DeFi applications. Secondly, MakerDAO is used by global organizations (UNICEF) to obtain funding for blockchain-based initiatives in social projects.
Finally, this DAO application is also frequently used in the gaming industry, where it can help create tokenized in-game assets. Still, it also focuses on providing incentives to artists for trading their artwork as NFTs.
Uniswap
Uniswap is the world’s biggest decentralized exchange in terms of the trading volume. Launched in 2020, it holds the rank of the top DAO with the highest amount in its treasury. It has more than $1 billion distributed tokens and more than 300,000 members with voting powers over the governance protocols, exchange fees and treasury. What’s more interesting about Uniswap is that it delegates votes to other users.
Uniswap has three distinct features:
- Automated Market Maker (AMM) technology. It’s a smart contract used for managing liquidity pools and providing tokens for facilitating trades.
- Token price determination. The price of the assets depends on the highest buyer and the lower seller within the AMM system.
- Constant liquidity. The Uniswap platform is able to maintain a fair market value while fostering ongoing liquidity.
Decentraland
Decentraland is a popular metaverse platform. It enables MANA token holders to participate in the governance of auctions and content controls, and it also allows users to govern over traits in the virtual worlds. As a token holder, you can build your own games, tools, marketplaces and content. You can also use Decentraland for:
- Creating dynamic 3D applications and games through the two distinct tools ―Decentraland Builder and SDK;
- Curating content through communities with shared interests;
- Publishing, distributing and collecting rare digital assets;
- Leveraging virtual spaces for marketing opportunities. Brands usually do this.
Decentraland has been through many changes, with three different stages of development:
- The Stone age, when digital real estate was represented as a pixel;
- The Bronze age, where the 3D virtual world was shown as land parcels;
- The Iron age, where developers could create an application and capitalize on the potential for their monetization.
Yield Guild Games
Lastly, the Yield Guild Games is another promising DAO for the NFT landscape. Its users usually want to generate income through NFTs in blockchain-based games and virtual worlds. YGG is mostly for game developers and publishers who want support and funding to develop and deploy their games on the platform.
On the other hand, you can use this DAO for play-to-earn purposes, and here are some famous games to play when you want to increase your income:
- Axie Infinity has one of the most popular metaverse coins, AXS, that you can earn by playing with your game’s virtual pets, Axies.
- Illuvium is an RPG game based in a fantasy world. To earn ILV tokens, you must travel to several places to fight monsters.
- Splinterlands is a trading card game where you can play games, trade, sell and earn SPS tokens.
- The Sandbox is a virtual environment where you can create, control and sell game experiences using the game’s token, SAND.
- Star Atlas is a space exploration strategy game where you can make strategies and overcome your opponents to earn ATLAS tokens.
Conclusion
Ethereum has provided an environment where you can make anything imaginable, from creating new applications to minting. One thing that separates Ethereum from other blockchains is adding DAO applications that help people raise money for a cause or encourage freelancers to monetize their work. DAOs are more beneficial than traditional organizations and can be great solutions for businesses.
