Decentralized autonomous organizations, otherwise known as DAOs, represent a burgeoning organizational use case in the blockchain ecosystem. These crypto native organizations have become popular mechanisms for quickly raising capital and deploying it to achieve the goal of the collective – an almost crowdfunding mechanism on the blockchain.
Recently, you might have heard about a fundraise to purchase a PGA-caliber golf course. The company behind the raise – known as LinksDAO – is the most recent example of crypto community banding together to achieve joint ownership of a unique asset.
The premise for LinksDAO is simple: create a modern golf and leisure club that is owned by individuals who participate in the DAO. How did they achieve this? First by selling roughly 9,000 membership NFTs worth a total of $10.5 million. While the capital raise provides the necessary funds to purchase what they are looking for, there has yet to be an announcement related to their target golf course.
Legal issues will be a consideration for this and many other DAOs as regulatory issues around owning assets could hamper the initial efforts. With time, however, many of the early builders within the space believe that these hurdles will likely be cleared.
“There are obviously still a lot of uncertainties,” LinksDAO founder Mike Dudas told Golf.com. “But this is how startups work. People just usually aren’t privy to this much detail this early on.”
There are Many Other Applications for DAOs
While LinksDAO is only one example of the application of DAOs, there have been various use cases proven out over the last twelve months. Applications include but are not limited to:
- Creator DAOs
- Protocol DAOs
- Collector DAOs
- Investment DAOs
- Media DAOs
- Social DAOS
These are just a handful of examples of applications for the technology. In this weeks Heat Check, we explain the functionality of DAOs, provide use cases for the organizational structure, map out the current landscape, and show how much capital is flowing into the space.
Check out the full report here.
ICYMI: Last week, we published a new Heat Check on alternative asset platforms. You can access that report and our entire catalog of research at Insights HQ.
