Here’s our round-up of the most valuable decentralized autonomous organizations (DAOs) worth joining as of June 2022.
If you haven’t been living under the proverbial rock in the crypto universe, you must have heard of DAOs, i.e. decentralized autonomous organizations. The majority in the community drives these organizations, and it has become a preferred way for startups and institutions to raise money and reach investors globally.
However, with the growing number of DAOs, as a potential investor or community member, you might be confused about which one you should join. Well, don’t fret! We have curated a list of the top DAOs worth considering in 2022. These boast immense popularity, significant market capitalization and great potential.
Though Uniswap was introduced in 2018, its governance token (UNI), or DAO token, was launched in September 2020. The token was created as a competitor to SushiSwap (SUSHI), a decentralized exchange (DEX) that urged users to shift from UNI to SUSHI. In retaliation, Uniswap introduced a billion UNI and distributed 150 million to users of its platform. Naturally, the token’s rise to fame did not take very long.
Boasting a treasury of over US$1 billion, the protocol DAO, one rooted in protocols like smart contracts, became well-known for its profitability. Over 300,000 members bought in the token and earned governance rights, allowing them to propose changes and decide the course of the token. A potential downside to this token is that it requires 40 million “yes”-votes for a proposal to be implemented, and that’s no easy feat.
Launched in March 2022, ApeCoin is a new entry into the DAO and blockchain universe. APE token holders earn governance rights in the eponymous DAO community. They get to vote on changes and developments; for instance, recently, blockchain Avalanche sent the community a proposal asking it to consider the platform’s subnet to build “Otherside”, Bored Ape Yacht Club’s (BAYC) metaverse.
Though Avalanche feels it would be a great Ethereum alternative for ApeCoin, the community is not so enamored with the most-liked comment under the proposal being “We should not move out of Ethereum ever.” Though the token promises access to exclusive merchandise, games and the ability to buy virtual land, it has come under fire for not being genuinely decentralized and for its volatility.
When the crypto market was crashing and stablecoins were losing their reputation, MakerDAO, launched in 2017, stood out for its conservative approach. While tokens, like Terra, drowned, Maker managed to keep itself afloat. According to Luca Prosperi, who leads the lending oversight at MakerDAO, “The system has been stable because it’s been built in a very conservative way, and that took a lot of effort from core team members because this community is very impatient.”
In May 2022, while Terra’s value fell to US$0, MakerDAO’s governance token MKR rose by 30 percent as users departed from Terra. Its stablecoin DAI managed to maintain its dollar peg, infusing confidence in investors. This is bolstered by the token’s real-world utility, including paying for shipments and helping startups secure funds.
The Aave (Finnish for “ghost”) token came to be in 2020 after the protocol departed from its 2017 native LEND token. One of the largest crypto lenders in the world, Aave allows its token holders to govern the platform and influence its direction. Holders not only get to use this token in the real world to purchase real estate, cargo and the like, but they also get to use the tokens as collateral when borrowing. They also get exclusive discounts and waivers. Following the success of its Aave DAO, the platform has also proposed a separate Risk DAO, inviting community members to analyze the “relevant risk areas” of the Aave protocol, including oracle risk, market risk and more.
The oldest DAO on the list, Dash, was founded in 2014 and is dubbed by some as the “original DAO”. It was launched as a Bitcoin alternative, aimed at securing the privacy of crypto users. The community, also referred to as “masternodes”, is responsible for a range of decisions, from marketing to potential changes to the platform. As for its use-cases, the platform aims to enable seamless daily transactions, like PayPal, via blockchain.
Ultimately, each of these DAOs offers unique services and benefits. Your choice of organization will depend on your requirements and risk appetite; after all, cryptocurrencies, even if community-run, don’t promise stability—as was made evident by the recent cryptocurrency market crash. So, prioritize research and follow the latest crypto trends to make the right decision.
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