DAO, the new trend in the NFT marketplace

Within the crypto market, NFTs have shown in a very short time to be assets with a potential far beyond simple entertainment and collecting in a market that reached $41 billion at the end of 2021 alone, innovation is a critical piece in the survival and success of non-fungible tokens.

One of the new trends in NFT innovation is the adoption of Decentralized Autonomous Organization (DAO) models which are automated governance mechanisms in an NFT project that provide autonomy and the ability to be regulated by its members, but also drive the growth of new NFT trading trends, such as markets in the metaverse or the Play-to-Earn games.

As its acronym indicates, it is a Decentralized Autonomous Organization, this is easy to explain since its self-regulation is carried out from the programming itself. That is, the programming stipulated in the Smart Contract of this new collection.

DAOs make possible the capacity for individuals belonging to an NFT project to use their participation to be a part of a trusted environment and regulate the project itself.

It is a democratic development that ends with the hierarchical system, automating and providing determination to all participants, who contribute to the management of the DAO.

There are different classes of DAO and they are divided into the following categories:

• Operating Systems: Independent platforms that help companies set their own guidelines.
• DAO Protocol: It is based on voting mechanisms to apply decisions related to the modifications of a protocol.
• nvestment DAO: Focuses on managing investment pooling operations in DeFi projects.
• Services DAO: It is an automated system that regulates search and acquisition operations for companies and individuals.
• Collection DAOs: They are in charge of regulating NFT platforms focused on provision of fractional and wholly owned NFTs.
• Social DAOs: Manages decentralized platforms for the creation of social networks.
• Media DAOs: It is a decentralized news collector that works according to the interests of its consumers.

There are many more DAO models integrated with NFT technology innovations. Of course, virtually any DAO application is by itself a distribution and strengthening resource for an NFT project.