Will the NFT trend be supplanted by DAOs in 2022?

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As China struggles through its periodic debt crisis seasons that claim corporate victims and turn back the clock on innovation and economic progress, the foundation for the economy of the future is being laid in America.

This is not meant to be a political statement. Certainly, the opportunities that, thanks to blockchain, are arising in America are not thanks to any government. Neither the current one nor the previous one.

Simply, thanks to a fortunate combination of private initiative and less institutional pressure on products and services, the US finds itself with an open road to the future, without even knowing how.

In fact, the less pressure on innovations that exists in America compared to China is not due to a conscious strategy, but rather to the confusion created by the various competing government entities and agencies that makes targeted, universal action on a single sector Chinese-style impossible.

In these pages we often talk about these innovations in the US crypto sector that have miraculously escaped (for now) the censorship scissor.

Today I will give another example of these "casual" openings into the future.

In fact, let's talk about Dapper Labs, the company behind the successful non-fungible token (NFT) platform NBA Topshot NFT.

Dapper Labs has just acquired a company called Brud, which helps businesses develop their brands and advertise them by way of virtual influencers.

Brud basically has a large catalog of very realistic virtual "humans" who, no one knows how, meet with huge success online with their carefully constructed social media feeds that garner thousands of followers. It may sound strange, but virtual influencers are becoming a powerful and highly influential business model.

Clearly, Dapper Labs will be working with Brud to develop NFT around popular virtual influencers. This is one of the motivations behind this acquisition.

But that's not the only benefit Brud will bring to Dapper Labs.

Brud's founder, Trevor McFedries, also founded one of the most popular decentralized autonomous organizations (DAO) in the world ( it's 'Friends With Benefits', created on the Ethereum network). And I think this is the real reason for the great interest of Dapper Labs.

DAOs, are entities that manage products or services without executives or management teams and where decisions are made by the users themselves with a voting system using tokens registered on a blockchain.

To make a long story short, a DAO is nothing more than a company without a CEO that is managed directly by the people who use its products or services.

For many of us, this concept seems unnatural. And we might think that there is no chance of DAOs succeeding.

However, some of the best blockchain projects in the industry, such as ShapeShift and Maker, have embraced the DAO structure. And they've done so for a reason....

In fact, if set up correctly, a DAO could be a much more robust organization than just a company, as it would have far fewer weaknesses than the latter.

When there is a problem to be solved, DAOs encourage external communities of developers or problem solvers (who are also users of the DAO) to help solve it.

There's no need to call dramatic membership meetings, no need to hire expensive consultants to be paid handsomely even if they fail, no need to be accountable to shareholders and banks always ready to point fingers without having done anything to improve things, then taking all the benefits if they succeed. No, none of that.

In a DAO, all token holders of the "company" are financially incentivized equally to keep the project going, as the more successful the project, the greater the value of its digital asset.

And just as Dapper Labs is simplifying the process of creating and marketing NFTs, now the same company will be able in the future to develop a standardized process that will allow companies, but also individual customers, to create their own DAOs in a much "simpler" way than it is now (the FLOW token network will be used: traders be warned...).

If more DAO "production chains" like these catch on, we will see the emergence of one of the biggest trends in the blockchain industry throughout 2022.

For all the advantages they provide over traditional companies, DAOs, once their creation is somewhat automated and simplified, will have even more explosive growth than NFTs.

After all, NFTs are just toys for adults, while DAOs could revolutionize the foundations of the way we work and produce.

There's a big difference...

Thanks for reading!

CREDITS

The image "NFTWars, transforming NFT gaming with Layer-2 blockchain" by Marco Verch Professional Photographer (flickr) is available under Creative Commons 2.0.

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