When we think of a business organization, do we think of a centralized structure with a hierarchical approach to everything and good management teams? Do you think AI and relevant technology can replace this? People can definitely make use of technology to make better decisions and be more productive.
But what if we could have organizations that do not have leaders instead of technology replacing human resources? Can organizations run autonomously without having a centralized authority?
Blockchain technology can enable that with a Decentralized Autonomous Organization (DAO). Let’s have a quick overview of DAO and the top 5 DAO Crypto tokens that you can look out for in 2023.
What is a Decentralized Autonomous Organization (DAO)?
In simple terms, a Decentralized Autonomous Organization (DAO) is a structure that, unlike traditional business organizations, is built on open-source software and is managed or governed by the whole community.
A DAO does not have centralized power, as the name suggests. Instead, collaboration and collaborative governance are the guiding principles of a Decentralized Autonomous Organization. As a result, a DAO’s fundamental structure and functioning are not based on any sort of hierarchical management.
To have an in-depth understanding of this, read here.
Now, let’s look at the top DAO Crypto tokens in which you can invest in 2023.
#1 UniSwap (UNI)
Uniswap is a Decentralized Exchange (DEX) based on the Ethereum network that lets investors effortlessly swap ERC-20 tokens. It is a token standard for Ethereum and includes some top altcoins, like Chainlink and Shiba Inu. Since the exchange is decentralized, there is no need for an intermediary to perform the trade.
By using “liquidity pools,” Uniswap eliminates the need for a traditional order book. Anyone can add their unused ERC-20 tokens to the liquidity pools of Uniswap and receive a yield in return. The returns will differ depending on the token, although they are typically higher than those offered by traditional savings accounts.
You can buy UniSwap (UNI) here.
#2 ApeCoin (APE)
Due to its NFT-based connection, ApeCoin, one of the best DAO crypto projects that have been launched, has attracted a lot of attention. ApeCoin, as its name suggests, has a close relationship with the Bored Ape Yacht Club (BAYC) NFT collection.
It’s interesting to note that the ApeCoin community operates like a DAO and controls how Treasury funds are used. Everyone who owns APE is automatically a member of the DAO, and there is a special “Proposals” section on the ApeCoin website where users can vote on various concepts.
You can buy ApeCoin (APE) here.
#3 Lido DAO (LDO)
Lido DAO is one of the top cryptos with excellent returns for investors. By owning Lido DAO, investors can participate in the process that oversees Lido’s liquidity staking protocol. Investors can stake various digital assets with Lido Finance to earn compound yields. Tokens owned by investors can be used as security, as loans, or for yield farming.
By owning the token and casting votes, the Lido community develops liquid staking services and controls the direction of the staking protocols.
You can buy Lido DAO (LDO) here.
#4 Aave (AAVE)
Aave is yet another top DAO crypto project to keep an eye on. Aave is a decentralized lending protocol that enables direct communication between lenders and borrowers. The protocol has primarily been hosted on the Ethereum blockchain, but because of its widespread adoption, it can now be integrated with many other networks.
The AAVE token holders can influence the protocol’s direction, just like with other DAOs. These consist of system potential upgrades and how Treasury funds are utilized. AAVE can also be used as collateral within the network, significantly lowering fees.
You can buy Aaave (AAVE) here.
#5 MakerDAO (MKR)
MakerDAO is built on the Ethereum blockchain network and is a peer-to-peer DAO that enables lending and borrowing with cryptos. The process of borrowing and lending on this platform is managed by smart contracts, just like any other DeFi protocol.
Due to the extreme volatility of cryptos, MakerDAO decides lending rates and repayment amounts on a stablecoin called Dai.
MakerDAO, to put it simply, is a crypto lending credit facility that allocates loans at fixed interest rates. A MakerDAO user would first need to deposit Ethereum into a Maker smart contract if they wanted to borrow a specific amount of crypto.
You can buy MakerDAO (MKR) here.
Conclusion: Is DAO a worthy investment?
Many DAO crypto projects provide investors with various advantages, such as the ability to execute certain financial transactions without the involvement of a third party. Users can vote on the protocol’s future and operations thanks to the fact that no one particular individual owns a DAO.
Investors are drawn to DAO projects in large part due to transparency. Votes can’t be manipulated or influenced by any entity and are publicly accessible on the blockchain. This makes DAO a worthy investment. However, each investor must conduct due diligence on DAOs to learn about their features and advantages in order to decide if it is an appropriate investment.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.