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The future of DAO is here with Fraktal’s new marketplace 

A decentralized autonomous organization, or DAO, is administered by transparent code and is mostly free of centralized influence, as the name suggests. The governing principles of a blockchain-based organization are encoded as a computer programme that is publicly accessible, and financial transactions are recorded on the blockchain. DAO code may be viewed, checked, and audited by anybody because they are open source.

For the arts industry, as producers and collectors become more interested in NFTs, DAOs are becoming an increasingly important piece of the blockchain-enabled puzzle. For artist-led businesses, cooperative gallery formats, collaborative investment funds, and so much more, DAOs open up a whole new universe of possibilities. DAOs, like NFTs, are a versatile technology.

DAOs are far more efficient than traditional business structures because, as previously stated, their decision-making processes are transparent and automated. They allow businesses, groups, and pretty much everyone to collaborate online to manage various procedures, assets, and projects. Furthermore, they are self-governing and provide autonomous agency to all DAO participants. If a DAO gets funds, the method for storing and distributing earnings will be encoded into its smart contract and handled automatically.

A set of operational rules must be written and encoded as a smart contract on a blockchain, such as Ethereum, for a DAO to function. This smart contract will reside on the Internet in a self-contained manner. However, humans must be involved in the development and maintenance of a DAO. It will then typically enter a funding phase after the rules have been established, which is essential because a DAO requires some spendable and rewardable capital. For entities to vote on governance ideas, a DAO also needs investors. After its funding period has ended, the DAO will usually be deployed. Because the rules are permanently recorded on a blockchain, the organization becomes decentralized and autonomous once it is deployed. At this stage, a DAO takes advantage of all of the benefits of blockchain technology, including its immutability and transparency. Finally, DAO-related decisions are made by consensus after deployment. Stakeholders in the DAO can submit governance modifications, new rules, reward adjustments, and other proposals by depositing funds. Stakeholders can then vote on these suggestions, with different participation and approval percentage thresholds depending on the DAO. DAOs enable the decentralized and borderless movement of funds between individuals or businesses via investment, gift, funding, borrowing, or various other financial transactions once fully functional and deployed.

DAOs have been expanding in popularity and becoming more applicable to more use cases every day, thanks to growing NFTs across the Internet and numerous sectors. The future of the DAO space will see more people experimenting with how they collaborate and pool finances to make investments. More nonprofits, companies, and other organizations will create DAOs to help govern new and exciting ways for creating value and thinking about ownership.

Almost everyone in the crypto-art industry has been working to boost the value proposition and worth of the artworks, the brand, the platform, and the tokens they issue in the digital art world. As a result, several crypto art initiatives have shifted their focus to NFTs.

There are a variety of ways that DAOs can function for the art sector in terms of funding systems and revenue sources. For starters, platforms can earn direct sales commissions to reinvest after a sale if they use and benefit from DAO rewards. They might also offer artists the option of donating a portion of their revenues to the DAO. Some marketplaces currently allow for the definition of secondary sales commissions, which might be directed to a DAO fund. Also, most platforms will enable you to establish a commission to them and other collaborators, which is a perfect way to get started with DAO funding. Employing a DAO as a trusted third-party and arbitrator gave artists the option of lending or leasing artwork. This enables artists to charge a fee to use their tokenized artwork, both physical and digital. Another approach for DAOs to make money is to sell artwork as collateral. The tricky thing would be attempting to value them.

Nonetheless, a reputation-based strategy and sales data stream can be beneficial. The process of purchasing tokenized artworks is a meeting of worlds in terms of the artist, the collector, and the underlying issuing platform on which the token is exchanged. Another approach to earn cash is through direct contributions, in which platforms, collectors, and artists can use the DAO and its services to help fund the project. Finally, established models such as VC/Angels/Funds are used by investors to diversify their investments into a high-risk but potentially high-reward arena.

Regardless of what industry a DAO is used in, and as mentioned previously, the most obvious benefit of a DAO is that it eliminates the need for organizations to be centralized. While most companies are managed and controlled by centralized parties, DAOs place true governance in the hands of those who have a stake in the company. In theory and practice, every investor should be able to participate in the governance of a DAO. Along with that, the rules are predetermined, transparent, verifiable, and widely disseminated. Nobody can claim that they didn’t understand a DAO’s rules before joining because they were always public. Proposals and decisions must also be thoroughly studied before being submitted, as they frequently require a specific amount of money. Lastly, the rules and transactions of a DAO are permanently recorded on the blockchain, ensuring complete transparency and accountability of all financial decisions and movements. While centralized organizations may keep their records secret, a DAO’s records are always open to the public.

In an attempt to help artists through the NFT process and set themselves apart from those currently in the market for digital artists, NFT holders, content creators, legacy art galleries, and crypto investors; Fraktal is a company that allows many owners to center around a single NFT, enabling crowdfunding for small and established artists and assets, rather than solely focusing on singular ownership. Rather than only allowing the more financially rich to own a high-value NFT, Fraktal’s mission is to put crypto art investment in the hands of everyone. While some other projects and companies are working on similar decentralized applications (DAPPS), Fraktal is the first platform for shared ownership. It enables fractional ownership of NFTs by using smart contracts on Ethereum, where a DAO Marketplace supports the community.

Join the Fraktal community and share the future of art by clicking here for more information.