To understand the DAO-powered NFT platforms, or the NFT marketplaces it is first necessary to be aware of what is a DAO as well as its management. A decentralized autonomous organization (DAO) can be described as an autonomous entity that is governed by rules that are embedded into computer programs, also known as smart contracts. DAOs are not centralized, which means they are based within a blockchain-based ecosystem.

For instance an organization of people seeking like-minded people from all over the globe to work together to create an independent social group. This may sound like a daunting idea to some however DAO allows it to be done. Through DAOs DAOs, people (who aren’t familiar with one another) can utilize the internet for communicating and organizing their lives in a safe environment, exchange values, and control a company.

DAOs eliminate the hierarchy of organizations making decisions more efficient by permitting everyone to take part in operational decisions, make votes and participate in the administration of DAOs. Based on the nature of the program, its technology, and the modus operandi, companies can decide to strengthen DAO in the following categories:

Platforms for operating systems that stand alone, that help businesses to establish and create their own DAOs

Protocol DAOs Use voting mechanisms to take the protocol’s changes.

Investment DAOs Facilitates pooling and investment operations for various DeFi (decentralized financial) projects

The Service DAOs regulate hunting for talent and acquisition activities for companies as well as individuals.

Collector DAOs are designed to control NFT platforms that provide the complete and partial NFT ownership

Social DAOs Provides social networking through decentralized platforms and engagement

Media DAOs A decentralized news aggregator that works in the consumers’ best interest

Development of NFT Platforms before and after DAOs

NFT Platforms prior DAOs

NFTs are based on blockchains with smart contracts. Every token created using the blockchain protocol has distinct information known as Metadata. Thus, NFT platforms or the NFT marketplace cannot be controlled by a central authority. But the people who created the blockchain protocol hold the power over the decisions they make, such as launching new features that are based on blockchain technology, setting rules, and launching improvements.

For instance, a person can’t control or control the market based upon the Ethereum protocol. The right to make the final decisions remains to the original developers of the protocol, who decide on the implementations necessary to ensure the long-term viability and success for the entire network. The users have no say in the future of the protocol, and cannot vote in support of any decision or propose any modifications for the network. The lack of control by the user creates an organizational governance system that is the only option.

NFT Platforms after DAOs

DAOs provide transparency through the distributed decision-making process. It streamlines the management of NFT platforms which allows users to participate and make decisions about the future of these platforms. DAOs also remove the obstacles in the process of making decisions such as who is able to propose modifications to the platform’s governance, or who is able to cast votes (shareholders and the board of directors of traditional companies).

Instead of having stakeholders feel that they can trust a manager or CEO, DAO strives to distribute the authority to control the company to the members of NFT. NFT platform. For example, if 10 members join together to form an organization, the members could vote and make modifications to the management.

With a wide range of people involved in the development of the DAO DAO-enabled platforms provide speedy and efficient solutions much quicker than platforms without DAOs. Recognizing the advantages of autonomous organizations many organizations have invested in DAOs to offer users benefits that decentralized oversight can bring.

What can use DAO to enable NFT platforms to benefit the users?

Ownership benefits

DAO is an instrument for making decisions on the NFT platform. Even though NFT platforms are a huge number in number, with a wide variety of features, the use of gaming-based NFT platforms is increasing. In this respect, we will look at how the presence of DAO is making a gaming-based NFT platform more useful to its gamers.

• With DAOs users have the option of reviewing the policies on moderating assets, and content auctions.

• DAOs are the owners of digital assets and smart contracts (NFTs) to provide independence and remove the concept of leadership and CEO in every NFT platform.

• Users have the option to put their NFT as well as the native token within the dApp and earn benefits from it.

• Users have complete oversight over the NFTs even if they are provided in the liquid pool.

• DAOs let the community take decisions and make votes on the most important elements of the platforms like NFT auctions, market decisions battle launches, modifications of contract policies, etc.