There is a lot of hype around Decentralized Autonomous Organizations (DAOs), as a key element of the metaverse and web3. Here we look at the best practical examples of DAOs.

1. THE BEST EXAMPLES OF DAOS
EVERYONE SHOULD KNOW ABOUT

2. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
There is a lot of hype around Decentralized Autonomous Organizations
(DAOs), as a key element of the metaverse and web3. Here we look at the best
practical examples of DAOs.
THE BEST EXAMPLES OF DAOS EVERYONE
SHOULD KNOW ABOUT

3. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
The Decentralized Autonomous Organization (DAO) is a web3 idea that allows
communities, corporations, or any type of collective organization to be administered and
governed without centralized leadership, thanks to the ability of blockchain.
So, what exactly does that mean? Well, blockchains like Ethereum allow the creation of
smart contracts – essentially sets of rules – to be implemented in a secure way, so no
individual party can override the decisions of others when they don't have authority. This is
primarily achieved by leveraging two facets of blockchain technology – encryption and
distributed storage. Advocates say that as well as removing the ability for network or
infrastructure owners – or even central governments – to impose their will on the way the
organization is run, it can also create efficiencies and give users greater control over how
their data is used.

4. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
However, there have also been controversies – with hacks and cyberattacks raising
questions about how secure the technology really is and concern over the energy usage
and emissions created by the blockchain infrastructure underpinning it.
The core concept of the DAO is certainly fascinating, though, and it represents an area
where technology trends such as artificial intelligence (AI), blockchain, and the internet
of things (IoT) are intersecting to create new possibilities.
With that in mind, here’s a run-down of some of the most interesting projects I have
come across so far. Some of them are no longer current or active, but I’ve included them
because they were significant in some way, even if they weren’t necessarily successful,
and their existence could inspire other DAOs that might emerge in the future.

5. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
UNISWAP
Uniswap is one of the biggest and most popular DAOs and operates as a
cryptocurrency exchange built on the Ethereum blockchain. Anyone can
become a member by holding the UNI token, which gives voting rights on
the way the organization is run and administered.

6. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
This one was not a huge success story – The DAO was one of the earliest
attempts to build a decentralized financial (de-fi) network for crowdfunding
venture capital. Unfortunately, it was hacked, resulting in the theft of $60 million
worth of Ethereum token ether. This theft was controversially reversed, and the
funds returned to their rightful owners through a process known as "forking.”
This essentially split the blockchain into two separate chains – Ethereum and
Ethereum Classic.
THE DAO

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DECENTRALAND
This is an online virtual world governed by a DAO, where administrative and
governance decisions are taken by the stakeholders in a democratic fashion.
Anyone who owns the platform's token, known as MANA, can take part in
the process, and the platform is quickly becoming popular with global
brands including Morgan Stanley, Coca Cola, and Adidas as a way of
reaching out to digital-native audiences.

8. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
This DAO made news headlines by becoming the first to be recognized as a legal
entity in the US, thanks to a law passed in the web3-friendly state of Wyoming. It
positions itself as a kind of crypto-equivalent to the US Federal Reserve and aims
to enable fee-free trading using its own token, known as the Ducat.
AMERICAN CRYPTOFED DAO

9. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
BITDAO
BitDAO is a decentralized investment fund backed by PayPal founder Peter
Thiel, created to allow anyone to buy a stake in web3 and de-fi startups and
initiatives. Token holders have the chance to vote on how managed capital is
spread across the projects supported by the fund.

10. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
This DAO aims to create smart contracts capable of carrying out legal services. It
is headquartered in the Cryptovoxels metaverse platform and is concerned with
building blockchain tools that can automate aspects of legal services, including
arbitration. With many DAOs existing in a grey area of legality, services like this
may be essential in the future.
LEXDAO

11. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
FRIENDS WITH BENEFITS
A crypto club where owners of the FWB token can meet to network and
collaborate on individual projects. There are individual hubs for different
cities, so users can hook up with similarly web3-minded individuals in their
own locality. The more FWB tokens a user holds, the more interaction and
opportunities to connect become available.

12. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
This DAO was set up in 2021 as a decentralized, crowdfunded effort to win a rare
edition of the US constitution, put up for auction by Sotheby’s. Ultimately,
despite raising over $40 million from 15,000 contributors, it was not successful.
However, the organizers stated that even though they did not win the auction,
the project was a success in that it had educated many people on the potential
of DAOs as a vehicle for raising crowdsourced funds.
CONSTITUTIONDAO

13. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
PLEASR
A collective of artists and art lovers that invest in NFT artwork and other
digital collectibles. It focuses on pieces that its members believe represent
important ideas and causes, and experiments with the idea of “fractional”
ownership of art, as all members have a share in the growing collection.

14. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
Basically, a fundraising DAO set up to collect and distribute donations to
assist those affected by the war in Ukraine. Among its successes with the
auctioning of an NFT image of the Ukrainian flag, which sold for 2,258 ETH, or
$4.7 million as of writing. Initiated by UK-based Ukrainian activist Alona
Shevchenko, the project has received support from activist group Pussy Riot.
UKRAINEDAO

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16. © 2021 Bernard Marr , Bernard Marr & Co. All rights reserved
Bernard Marr is an internationally best-selling author, popular keynote speaker,
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more intelligently, and understand the implications of new technologies such as
artificial intelligence, big data, blockchains, and the Internet of Things.
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