The crypto sphere with its growing competition now belongs to the masterminds, who devise their game strategy accordingly. While rookies complain that the market is skittish, the company maestros have bet smart.
It is widely known that first comers are the most benefitted irrespective of businesses. This holds true in the world of cryptos as well.
Consecutively, as the industry masses rush into mainstream cryptos, DeFi, NFT, metaverse, and games. Little is said about DAOs, which seem to get lost in the crowd of various assets.
Successively, older hands in the business are looking forward to exploring DAOs, and understanding the in’s and out’s of the business.
Will 2022 be in the name of the DAOs?
Over the past year, DAOs have seen strong growth in the quantity and quality of the number of assets managed by DAOs. And infrastructure applications that support the operation of DAOs.
For rookies in the business, DAO is a tech built by developers to automate decisions and facilitate crypto transactions. In contrast, the elements of DAO segregates into Community, People, Engineering, PR/Marketing, Product, Treasury, and Business Developments.
As mentioned earlier, DAOs are currently growing in greener numbers. Successively, the market capitalization of the sector is on the rise 4.41% at $29,377,519,742 at press time.
While the volume of trades are at $2,570,087,623. The top tier DAOs that include UniSwap, Aave, Curve Dao token, and Maker are scripting greener gains at 3.66%, 6.42%, 8.28%, and 3.22% respectively.
DAOs made a significant contribution to the crypto industry last year. The creation of the DAO Constitution and the auction of 13 copies of the US Constitution was a major milestone. In contrast, there are currently hundreds of DAOs managing billions of dollars in assets.
The diverse departments include Maker DAOs, Investment DAOs, Social DAOs, Protocol DAOs, Collector DAOs, Service DAOs, Grant DAOs, and DAO operating systems.
Are DAO limits holding back the bulls?
DAO’s shortcomings have held back the prosperity of the emerging sector. As limitations kicked in, so did the influx of investor traffic.
The list of limitations include lack of regulatory clarity, lack of coordination, smart contract fragmentation and risks involved in sustainability. The space will need to overcome the limitations to script the year in its name.
We can expect teams to address said shortcomings, bringing regulatory clarity for DAOs. Expand infrastructure with cash management tools and develop more efficient ways of operating. Which will be imperative for the DAO in establishing his rule.
Concluding, DAOs hold the potential to yield higher returns for the year with its diversity, and use cases. Provided the limitations collaring the bulls is parted ways with. We can expect the space reiterating its strength from the previous year in much polished manner. That said DAOs should be considered for investments alongside other emerging sectors.
