Building a Better Future: The Power of Impact-Driven DAOs | 💚 |
and a roundup of NFT Paris 2023, brand launches from Shiseido and Mizuno
GM. 🫶
This is Web3 Espresso ☕- your weekly cup of everything Web3 designed to educate, entertain, and inform.
If you’ve just arrived, start here and get up to speed on what is Web3 and why it matters ✨
What’s in store today:
🥡 The Weekly Roundup - Spotify, NBA, Porsche all made the news
🥐 NFT Paris 2023 - where art meets technology
💡 NEW - What on earth is … a DAO?
💚 Exploring the potential of DAOs to drive social change
🚀 NFT Rockets - 🇯🇵 Spotlight on Japanese brands Shiseido and Mizuno
Let’s go! 🥤
🥡 In the News …
What caught my attention in the Web3-Sphere this week
The battle of the NFT marketplace - OpenSea vs. Blur 👉 full story here
Spotify tests "token-enabled playlists”. NFT holders can connect their wallets and listen to curated music. 👉 full story here
NBA’s “Top Shot Moments” NFTs may be (financial) securities 👉 full story here
“Our holders have spoken,” - How the Porsche NFT Drop crashed and burned 👉 full story here
🥐 NFT Paris
NFT Paris 2023 took place last week and according to my Linkedin and Twitter feeds it was definitely “ZePlaceToBe”. Think Art & Culture meets Technology but in a cool way. Attendance was over 10,000 which was a huge increase from last year’s 600 attendees.
The NFTParis YouTube page is full of interesting videos and recaps.
You can view it 👉 here
💡 What on earth is … a DAO?
Decentralised autonomous organisations (DAOs) are a staple of Web 3. DAOs are intended to provide a new, democratised management structure for businesses, projects, and communities, in which any member can vote on organisational decisions just by buying into the project.
A Simple Definition
A Decentralised Autonomous Organisation (DAO) is a new way to run an organisation online where members have the rights of management and ownership.
It has a flat structure and does not allow CEO’s or managers in its working.
Governance in a DAO is code-driven with the use of Smart Contracts. Rules are set out and automatically executed when certain criteria are met.
DAOs are a little like cooperatives but code-driven - ensuring efficiency, accuracy and timelessness.
Decisions and financial transactions occur without the presence of intermediaries. All DAOs have a shared crypto bank account and are run by a group of people aligned with a shared mission.
How does it work?
At a high level, this is how DAOs work:
DAO founders create a new cryptocurrency, known as a governance token;
They distribute these tokens to users, backers, and other stakeholders;
Each token corresponds to a set amount of voting power within the organization and a price on the secondary market, where it can be bought and sold at will.
How Does a DAO Make Money?
A DAO first raises money by exchanging fiat currency for its native token. This native token represents the distribution of ownership and voting power among members. The native token's value will rise if a DAO is successful.
The DAO can then issue tokens in the future with a higher value to raise additional funds. If the members elect to support such actions, a DAO may also invest in assets. A DAO can, for instance, purchase businesses, NFTs, or other tokens. The value of the DAO rises if those assets experience an increase in value.
How can you join a DAO?
Joining a DAO is like becoming a member of a club. It’s easy to join, but the question is: do you want to contribute actively?
This will depend on why you’re joining. Is it for the cause or to make extra income? Do you have time to invest? And do you want to have influence on the outcome?
Note: DAO participants are usually advanced users of cryptocurrency services.
DeepDao lists the different DAOs by size and is a great way to find a DAO that may align with your goals.
The majority of communication takes place on Discord.
[👉Let me know if you would like to know more about Discord - it’s the go-to communication tool in Web3 communities]
💚 Impact Oriented DAOs
There are many types of DAOs (see above), but I found it interesting to see whether this model had been applied to charities and NGOs.
And yes, they have.
They are known as public goods DAOs or impact oriented DAOs.
Impact DAOs are DAOs focused on making a positive impact on people and the planet. Think of them as internet-native nonprofits and social impact organisations.
An article published in the media Crypto Altruism outlines five ways DAOs will revolutionise social impact. They are:
Creating new models for accountability: Through the use of smart contracts and governance protocols, DAOs can enable the community to take ownership over causes they care about, and to hold leaders and organisations accountable.
An alternative to traditional fundraising: Through the purchase of tokens, DAOs can be used for fundraising and providing direct donations to charitable causes. The group can then decide collectively how the funds are dispersed. This was done to quickly raise funds for Ukraine with the UkraineDAO.
More transparency: DAOs can increase transparency in the social impact space by enabling charitable activities on the blockchain, which allows donors to track the use of their funds. Additionally, DAOs facilitate transparent decision-making by making all important decisions recorded and available to the public on the blockchain.
Creating new incentives: The idea here is that DAOs can use tokenization to incentivise positive behaviours and charitable activities.
Driving community ownership: DAOs can drive community ownership by giving members a direct say in decision-making and governance. This also allows for greater community agency.
Here 3 examples of impact DAOs:
Big Green DAO - the first non-profit led philanthropic DAO
Klima DAO - founded to influence the carbon markets
Endaoment - on a mission to bring philanthropic financial services on-chain
Code Green - raises funds for the most impactful climate projects by hosting dedicated NFT auctions at high-level events on the international calendar
If you want to go deeper on this topic, I recommend checking out these publications:
🚀 NFT Rockets - Powered in Japan 🇯🇵
More and more brands are using NFTs collections to help build brand loyalty and engagement by giving customers the chance to buy and access exclusive collectibles.
Shiseido, a Japanese beauty brand, has released an AI-based collection of 150 NFTs along with the tagline #AliveWithBeauty. The release was timed to commemorate its 150th anniversary. In an attempt to bolster customer loyalty and a sense of community, holders of the NFTs will get £1,000 worth of skincare, tickets to events, and other rewards as the programme grows.
👉 Link to Shiseido’s NFT Collection - here
Mizuno, a Japanese sports gear manufacturing giant, is set to release its first line of NFTs that will cover its key sports: football, judo, and athletics. The seven running-themed NFTs were made using commemorative Mizuno Wave Rebellion Pro running shoes from the Osaka Marathon. They are all different shades of the rainbow. These NFTs will be redeemed for "real sneakers in the same design."
👉 Link to the Mizuno NFT Collection - here
This is an example of major Japanese brands leading the way in Web3. Could this be related to the fact that the Japanese government seems to be in favour of Web3, as shown by the proposal made by the Web3 project team of the ruling parties? The Japanese prime minister has also said that DAOs and NFTs could help the government's "Cool Japan" plan.
🎇 Could this take Japan to the forefront of Web3.0 ?
You weren’t at #NFTParis 2023 - don’t worry, I’ve got you covered
That’s all for this week… 🫶
If you have any questions - drop’em here!
I'm happy to answer any questions. 👇
Please note that I do not recommend or endorse the companies and organisations mentioned in this newsletter. This content is purely informative and not a recommendation. Always be mindful of where you connect your wallet. Always do your own research. 💛