DAO x NFT: A community with warmth and resonance
A combination of DAO and NFT brings an evolution of the governance model. Most of the DAO currently vote and govern by holding ERC-20 tokens, but with this mechanism, governance participants would have to become investors, governance may even be controlled by speculators. Therefore, some DAO choose to vote with NFT, so that each member can enjoy fairer governance rights. At the specific application level, in the past two years, many new DAOs have focused on NFT collection and investment, and cultivated and expanded the value domain of NFT through community power. In addition, as some high-priced NFT is not friendly to individual investors, many fragmented bidding DAO have emerged. In this type of DAO, members have the right to jointly decide the NFT artwork to be invested in, and can split, borrow, curate the purchased NFT, or pledge it on other DeFi platforms. Participants of NFT projects are also interested in activities outside of the finance sector, so there is a rich DAO ecology in this field, creating a community with warmth and resonance. For example, in some NFT-based social DAO, people who purchase the same NFT collectables form a community with a specific identity, maximizing social capital.
In the summer of 2021, NFT avatars such as BAYC and CryptoPunk have repeatedly fetched sky-high prices, which is enough to see the strong appeal of the community. There are also content production and distribution platforms that are building creator economies through DAO. The fundamental model is that NFT is used to tokenize the ownership of digital content, forming a closed-loop of content-based production, investment, resale, and consumption and the crowd gathered around it forms a temporary DAO that collaborates on decentralized content production, and this loose, heterogeneous connection makes creation more dynamic.