NFT DAO

NFT DAOs combine the governance frameworks and shared treasury of a DAO with the power of NFTs as a membership and governance token. This enables NFT projects to establish a formal structure that empowers holders with collective ownership over the direction of the project. NFT DAOs create a foundation that embodies some of the core values of Web3: collaborative, decentralized building with shared economic upside.

How does a NFT DAO Work?

NFT DAOs are permissioned communities that use NFTs as membership and governance tokens. The NFT serves as a proof of ownership that grants the holder access to the DAO, its benefits, and the right to vote on proposals. This ensures that only people with a proven, vested interest in the DAO can influence policy and affect decisions.

NFT DAOs use governance processes similar to traditional DAOs which involve three main stages: proposal, voting, and execution (if passed). While DAOs are constantly developing new voting mechanisms, many NFT DAOs use the common rule that 1 NFT = 1 vote. This rewards a holder that owns multiple NFTs in the project with additional voting power in the DAO.

Why we need NFT DAOs?

NFT DAOs distribute ownership of an NFT project across the original creators and all holders. The founders act as stewards for the DAO by building alongside holders with the goal of generating value for the project and the community. This creates an exciting dynamic between the founding team and its community.