With the help of nonfungible tokens, people can purchase digital houses, land, and business organizations can sell virtual cosmetics and clothes. With increasing demand for NFTS, market capital for nonfungible tokens rose to $41 billion by 2021. As per sources, revenue from NFTs is expected to increase and exceed $80 million by 2025. NFTs are reforming almost all industries because they facilitate digital asset tokenization, which creates lucrative opportunities for investors, entrepreneurs, and traders worldwide.
Future of decentralized technology- DAO NFT
Every NFT marketplace platform comes with a different set of benefits for users. Some NFT platforms provide a trading marketplace so people can engage in NFT trading and showcase their assets or collectibles. Some other NFT marketplace platforms enable users to engage in games and generate rewards by staking their own NFTS. NFT platforms are constantly undertaking innovations. For example, NFT platforms have adopted a DAO or a decentralized autonomous organization model. DAO is regulating the NFT platform and helping it avoid bureaucracy, and so DAO nft is becoming the upcoming future of efficient decentralized technology.
How DAO enabled NFT marketplace platforms can benefit users?
- Ownership
DAO acts as a tool for making effective decisions for the NFT platform. There are diverse NFTs with distinct varieties available today, but the popularity of NFT-based gaming platforms is constantly rising. The introduction of DAO is making gaming NFT platforms more useful for users. DAOs help users access the right to review policies regarding changes in asset policy, content, and auctions. DAO nft on digital assets and smart contracts brings more autonomy and removes the concept of central authority and leadership from the NFT platform. DAOs allow the community to vote and propose decisions on important matters of the platform, like NFT auctions, battle launches, marketplace decisions, changes in contract policies, etc.
- Income
The popularity of gaming-based NFT platforms is constantly growing as they are adventurous and help users generate income opportunities and rewards for DAOs providing NFT staking opportunities to users. NFT holders can earn income opportunities by NFT staking without transferring the ownership of NFTS to others. There are a plethora of advantages and innovative features which DAOs brings to the NFT platform. For instance, ZooDao is an NFT platform driven by DAO and helps users generate quick passive income. This gaming platform uses a data model for developing NFT yield farming and NFT battle features.
- Voting power
Regular NFT platforms and DAO NFT platforms have the same features. The only difference is that users of DAO-enabled NFT platforms can make major decisions with the help of voting power. Member’s vote is an essential feature in DAO-enabled NFT platforms for making alterations to the existing policies and rules and issuing grants on the platform. DAO enables every user to play an active role in participating in decision-making activities.
Conclusion
DAO model brings more transparency since it features a distributed decision-making system in the NFT platform. It enables NFT platforms to provide more efficient and quick solutions than regular NFT platforms without DAOs. It strives to distribute the controlling power to the members who run the NFT platform instead of a manager or a CEO. The DAO model supports the crypto trading platform, metaverse project, and NFT marketplace.