DAOs — How they relate to defi and nfs?

WHAT IS A DAO?

Imagine an organization without a leader where different people around the world coexist, making their own rules and decisions under a single encoded blockchain. Well, DAOs are making this real.

A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation(DAC), is an organization constructed by rules encoded as a computer program that is usually transparent, controlled by the organization’s members and not influenced by a central government, This of organization is owned by members, this is decentralized. A DAO’s financial transactions are maintained in a blockchain

These organizations are mostly internet based an allows us to collaborate with people all over the world without even meeting them.

A typical example, is TheDAO, intended for venture capital funding. It has amassed 3.6 million ether (ETH) — Etherum mining reward — then worth more than US$70 million in May 2016, and was hacked and drained of US$50 million in cryptocurrency weeks later. The hack was reversed in the following weeks, and the money restored.

DAOs are open source because they are built on public blockchains. Because all financial transactions are stored on the blockchain, anyone can inspect their treasuries.

Governance in DAO

DAO governance is coordinated using tokens or NFTs that grant voting powers. Requirement for acceptance in these DAO including ownership of the tokens in your wallet, and membership may be exchanged. More tokens correlates with more voting power in the DAO. Contributions from members towards the organizational goals of a DAO can sometimes be tracked and internally compensated. Many people believe that the Bitcoin network was the first DAO, but according to modern standards, Dash was the first “real” DAO because it allowed stakeholders to vote through its governance mechanism.

Why Should We Pay Attention to DAOs?(ADVANTAGES)

1. DAOs offer entrepreneurs and innovators numerous long and short-term benefits that a traditional corporate structure cannot.
2. So far DAOs are being used for many purposes such as investment, charity, fundraising, borrowing, or buying NFTs, all without intermediaries.
3. DAOs are trustless because they carry out business operations autonomously via smart contracts. They do not require you to put your trust in a single person or a board of directors. If a key developer or manager leaves, the DAO will continue to function.
4. DAOs are also resistant to censorship. They cannot be shut down forcibly by anyone, including the government or regulatory bodies. Even the DAO’s creators cannot shut it down unless the community of governance token holders votes to do so. Nobody, regardless of position or authority, has the right to impose their will on a DAO.
5. DAOs also provide numerous long-term benefits. They enable anyone with a governance token to participate in the project’s success by contributing to the DAO’s mission in a variety of ways. These could include, among other things, creating new code or features, fixing bugs, or contributing capital to an investment pool.
6. Rather than focusing on profits at all costs, DAO creators could encourage social incentives and increase participation and contributions from their communities if they establish and maintain a strong community culture.

DAOs for DeFi

DeFi apps require “DAOs,” or Decentralized Autonomous Organizations, to operate. DAOs manage DeFi apps through the individual decisions made by decentralized validator nodes who own or possess tokens sufficient in amount to approve blocks. Unlike joint stock companies, corporations, limited partnerships and limited liability companies, however, DAOs have no code (although, ironically, they are creatures of code). In other words, there is no “Model DAO Act” the way there is a “Model Business Corporation Act.” DAOs are “teal organizations” within the business organization scheme theorized by Frederic Lalou in his 2014 book, “Reinventing Organizations.” They are fundamentally unprecedented in law.

Generally speaking, there are a lot of DAO projects in the market, both on etherum, polygon, Dash and other network. They all face numerous problems/challenges..

That is why #glitch_guild has come to close the gaps open by this project…

GLITCH_GUILD DAO

Glitch Guild — is a decentralized autonomous organization (DAO) aimed to maximize the value of NFTs collection and education through research activities by finding and recruiting talented people and researchers for grants and incubations of NFT projects.

As Guild Glitch is a DAO, it makes use of smart contracts to choose the direction of growth for the community through governance proposals and the voting of fungible token and Non-Fungible Token (NFT) holders.

The Guild is more narrowly focused: it is in charge of attracting freelancers interested in working in the field of NFT, as well as participants interested in supporting artists and the project by participating in decisions that influence the project’s future development.

The Guild seeks to reward participants based on their positive impact on the guild’s development rather than their financial contribution.

The problem faced by other DAO :

1. Because the entry level into cryptocurrency is frequently high, it may be difficult to attract talented individuals.
2. Project decisions are frequently made in private and are not discussed with participants.
3. Profit-sharing is frequently absent in projects, and investors frequently lose money by investing in a token that is later devalued by project developers.

Solutions offered by glitch_guild

1. The guild can assist them in learning how to use cryptocurrency and developing an NFT collection to broaden the audience and assist new artists.
2. Once a decentralized model is established in the guild, decisions about project development are made based on the opinions and votes of all participants.
3. The formation of a guild in which members can obtain the majority of their profits from the guild treasury.

Revenue System for Guild Glitch

One of the ways through which the treasury [mainly composed of $GUARD and $KNIGHT token] grows is through both the buy and sell tax from the purchase of the Guild’s native token $GLTCH which are 6% and 8% respectively.

Another method is the commissions from the purchase of the Guild’s NFTs

For our community members the various ways to accumulate profit is to:

1. Buy $GLTCH, stake $GLTCH in the NFT farm which opens up the option to claim Guild Guild’s NFT and $GLTCH tokens.
2. Hold the NFT which enables them to earn from Guild Glitch’s treasury pot.
3. Selling the $GLTCH token.
4. Staking your $GLTCH token in a $GLTCH-$BNB LP(Liquidity Pool). This gives you the opportunity to earn $KNIGHT. So accumulating $KNIGHT ensure you earn $GLTCH from the pool.

The $GLTCH token earned from the pool can be staked in the NFT farm. This leads us back to step 1.

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