*5.4. DAO*

DAO is a decentralized autonomous organization. The decision of the organization is made by the group. The organization will also issue its own tokens (but not necessarily every organization will issue it), some of tokens held or those participating in the DAO. The project, which determines the size of the voting power, DAO can be a company

where everyone is the boss, both consumers and owners, which actually shortens the distance between the market and the organization, and through DAO efficient voting, decision-making. It can shorten the mechanism of decision-making and execution, thereby improving the efficiency of the organization. The business model of DAO can be very promising in the future. NFT is used to illustrate that the current NFT market has a phenomenon of oversupply and lack of development potential. If DAO appears at this time, its development can be promoted. For example, Party-DAO, which focuses on investing in NFT projects, its goal is to gather the power of retail investors to obtain funds through crowdfunding to buy NFTs. After the purchase is successful, the internal tokens will be distributed proportionally to record the NFT purchase share. If you want to sell NFTs, you need to initiate a vote within the organization. If the support exceeds 50%, a public auction will be held, and the proceeds will be divided equally according to the proportion. This not only promotes the trading of NFTs, but also promotes more cash flow into the cryptocurrency market, so DAO is a "good medicine" to improve the entire decentralized finance.

As shown in Table 4 DAO companies are divided into eight categories according to their functions and business. DAO-operating systems: The main task is to help users create DAO; Investments DAOs: To raise funds to invest in projects recognized by DAO internal members, if there is profit, it will be divided proportionally, otherwise the risk will be shared; Grants DAO: If you want to improve the internal DAO, you need to initiate a proposal as a member. If the proposal is passed, you can get a bonus to complete your own ideas; Collector DAOs: It belongs to the collection DAO, that is, only invests in NFT projects, and the profits are divided proportionally, otherwise you need to share the risk; protocol DAOs: Mainly do cryptocurrency lending business on the blockchain; Service DAOs: Provide services to DAO, such as fundraising to buy NFT, or analyze data; Social DAOs: Mainly do online discussions and interactions; Media DAOs: Blockchain news.



If you want to join any of the above organizations, you need to hold some of the cryptocurrencies specified by the organization or participate in the project together. These are two main ways to join the organization. No matter which method is used, it is inseparable from cryptocurrencies. It is also an important choice in investing in cryptocurrencies.
