Before you figure out what a DAO is in the metaverse, you need to know the background of this issue. All representatives of the technological sphere cannot contain their delight about the potential future of the metaverse, which is under development. However, the implementation of the true vision of the metaverse is connected with the provision of decentralized governance.
According to Coinmarketrate.com decentralized autonomous organizations or DAOs serve exactly the same purpose for the cryptocurrency world. They can offer precise management mechanisms for crypto platforms to ensure effective product management along with reducing the human factor.
Most importantly, DAOs can eliminate concerns related to the manipulation of investors’ funds. In fact, they guarantee that the decision-making privileges for a particular blockchain platform will not belong to one person or group.
And now it is logical to ask the question, what value can they bring to the metaverse?
The work of the DAO
The basics of the work of decentralized autonomous organizations are a mandatory item in any story about the DAO in the metaverse. You can lay a solid foundation for understanding how the platform works by reflecting on the overview of the DAO.
To date, almost 188 DAOs control the management of assets worth 13 billion US dollars. They play an important role in defining policies for DeFi protocols, setting parameters for virtual land auctions, and determining yield rates.
Interestingly, the basis of a decentralized autonomous organization is computational algorithms. Algorithms, or smart contracts, define the rules of participation and cooperation between various parties associated with the DAO. Despite the varying levels of complexity of smart contracts, the rules will always be unchanged and transparent. As a result, each participant can analyze his activities, as well as check the correctness of compliance with the rules.
All decisions in the DAO are managed by the mechanisms of making proposals and voting, which ensures that each member of the organization expresses his opinion in the management process. This process is very important to support participants in voting on critical decisions for resource management.
In fact, the importance of Metaverse DAO becomes quite obvious when reviewing how organizations work. They can contribute to the formation of a sense of community between participants focused on one common goal.
And so, what is Metaverse DAO?
You’ve probably heard a lot about the metaverse lately. The promise of an open and decentralized world with permanent and shared digital spaces is attractive for various reasons. The metaverse represents the next stage of digital transformation, reflecting the real world in virtual space and vice versa.
However, the explosive growth of attention to the metaverse and crypto-space, especially with the use of DeFi, NFT and “play-earn” games, creates a disorderly environment. How about managing a metaverse that includes all these solutions in one place?
Metaverse DAO is an innovative Farm-as-a-Service project based on the Ethereum blockchain network and designed to help users receive passive rewards from profitable farming in various blockchain-based networks. The main goal of the project is to provide users with easier opportunities to receive remuneration for farming without investing their own efforts.
It focuses on increasing profits exclusively for MDAO token holders. The Treasury Wallet provides funds for farming in various networks, in accordance with the DAO management rules. Subsequently, all rewards are automatically transferred to the dividend pool, from where investors can receive their remuneration in the form of MDAO or ETH.
If you assume that this is just another platform for growing cryptocurrencies, then perhaps you are mistaken. In fact, the Metaverse DAO is aimed at developing a community-driven Metaverse. The platform’s initiative includes the distribution of treasury funds through various metaverse projects.
MDAO management suggests investing in the development of games based on the “play- earn” principle, games based on NFT and immersive metaverses. In addition, the platform also aims to encourage direct investment in teams and corporations working on a long-term vision for the development of play-to-earn and metaverse games.
How can MDAO provide such flexible investment opportunities in the metaverse? Doesn’t this look like blind allocation of investors’ funds to an idea that is still under development? Let’s figure this out, too.
One of the main points in the definition of Metaverse DAO is “community”, which is reflected in the management of the platform. As you probably already understood, MDAO is a decentralized autonomous organization, which implies the decentralized nature of its management. It conceived its development as a community-driven protocol, under the control of community members, i.e. MDAO holders.
In fact, community members or MDAO token holders play an important role in how the entire project works. Community members have full privileges in determining the direction of proposals for the future of the project. The MDAO project primarily focuses on creating a space that recognizes and uses initiatives recommended by community members.
The main highlight in the work of Metaverse DAO is the MDAO token. Each token represents an equal share in the management of the organization. If you have more tokens, you have more authority to determine administrative decisions and new investment rules. Governance plays an important role in the significance for the ecosystem of the metaverse. You should also note that snapshot is the only platform for making suggestions and decisions. The community can put new proposals to the vote or vote for proposals made by the MDAO team.
Farm-as-a-Service
The striking characteristic of Metaverse DAO as a decentralized management platform also points to the possibilities of Farm-as-a-Service. People familiar with the cryptocurrency space have probably met a mention of farming. The concept of profitable farming is almost the same as that of traditional bank savings accounts. Liquidity providers receive incentives for placing or locking their assets in a liquidity pool based on smart contracts. Incentives in the form of cryptocurrencies are, in fact, a reward for the trust that you invest in the platform.
Users of cryptocurrencies can receive incentives from the activities of growing profitability by placing or blocking their capital for a long period of time. The interest on the assets placed or blocked gradually increases over time. At the same time, farmers can receive many other rewards for their time and efforts in the project. Even if profitable farming seems simple on paper, a crypto investor faces many difficulties and high maintenance requirements. You don’t have to worry, as another aspect of the Metaverse DAO provides a viable solution to such problems.
Farm-as-a-Service is one of the most important features of Metaverse DAO, as it helps in farming numerous protocols. The community can vote on the choice of strategies for farming along with automatic remuneration of farm income. For example, the protocol automatically introduces a tax in the process of converting any token into MDAO. Therefore, token holders can find a suitable platform for passive income, thereby opening the way for many future investments.
MDAO’s work shows how it can expand the capabilities of decentralized governance in the metaverse. In addition, it can lower the barriers to entry for the creators of the metaverse. However, the growth of MDAO largely depends on the functionality of “farming as a service”, which attracts investors to the project. MDAO management helps to determine the maximum and minimum rates of return for existing pools to make decisions about continuing participation or re-investing from other pools.
In addition, the MDAO management also determines the share of funds from the treasury that can be distributed among different risk groups. Thus, management actually turns out to be the main topic in how Metaverse DAO works and ensures efficiency. Below is an overview of how MDAO management dictates the methods of placing funds for various risk groups.
- Low risk
Low-risk groups in MDAO include users of stable coins and users of secure DeFi platforms. In the case of low-risk groups, the volatility is less than 5%, and the APY is almost 30%.
- Average risk
Groups with medium risk, according to the MDAO guidelines, include organizations offering liquidity to popular metaverse and blockchain projects. Investors with medium risk hold their investments for at least 30 days, thereby maximizing profitability. Volatility in medium-risk groups ranges from 5% to 40%, and APY can reach from 1000% to 5000%.
- High risk
The high-risk group in Metaverse DAO primarily includes platforms with the highest risk. Interestingly, here you will find the highest volatility and probably the opportunity for the highest returns.
Metaverse DAO aims to use transparent administration to improve community management in the metaverse along with increasing rewards for community members.
In conclusion
And so, now you know that Metaverse DAO has shown how it can serve as a vital tool for the metaverse. It is a community-managed farm-as-a-service protocol designed to distribute investments between various metaverse projects. As a decentralized autonomous organization, Metaverse DAO has all the necessary ingredients to enable community members to take control of the metaverse.
At the same time, it also provides community members with a unique farming protocol that does not differ in the complexity of traditional strategies. Moreover, a clear distribution of summation methods and corresponding rules also contributes to efficient and transparent administration.