DPL 25: What Is a DAO & Why to invest in DAOs?
Dive deep with me into the process of becoming a DAO member.
Hello, Parivar! I hope you are receiving the letters sent by our Innocent Intelligent Kabootar ;)
Fun fact: Web 3.0 is not just about NFTs; there are many more aspects to it, and today I will be explaining one of the parts of the Web3 space.
So today, I joined a DAO.
Lot of people might be wondering what is a DAO?
Let’s understand that.
DAO = Decentralized Autonomous Organizations.
To elaborate, DAOs are like an organization where the community or the members can make decisions or votes.
Say, for example, if you have any ideas for a business and wish to execute it, but you need $$.
That’s where you call some investors in to invest in your ideas, and the best part is that investors cannot just invest $$, but they can also share other ideas to improve the whole strategy.
It’s basically planting more seeds in one garden and growing together!
A DAO is created by developers using smart contracts.
Just how there are many NFTs, there are many different DAOs around.
Some of the benefits of being a DAO member:
Secular Growth
Your vote/decision/word matters
Networking with like-minded people
Transparency, i.e. it’s all out there, where is your money being used by the organization, etc.
Can trade the tokens (DAO tokens) anytime. (you are the owner)
And as I always mention, it’s necessary to be active in this new space by joining and being part of communities in different ways, whether discord or Twitter.
Similarly, being part of a DAO is another way.
I have been researching different DAOs and which DAO I can be part of.
I had two DAOs in my mind, which were active in the community, the 1st being Friends with Benefits (FWB) DAO, and another is Bankless DAO.
And to join the Friends with Benefit DAO (a DAO where crypto meets culture), we have to give an application. Which I had already submitted, i.e. I've already requested one application.
Most of the DAOs have this procedure where 1st you have to apply, and only if you get the approval you will be eligible/become a member.
And with the application, you will also have to pay a certain amount, but that amount need not be in $$.
To give an example, to join the Friends with Benefit DAO, you must hold atleast 75 $FWB cryptocurrency tokens.
And as of today, i.e. January 10th, 2022, $FWB tokens are $51.85.
To check token/currencies prices, visit www.coingecko.com.
All in all, please note that becoming a DAO member might not be free.
You will have to pay a certain amount to join in.
Consider it as club membership, golf club membership, etc.
When you take a club membership, you get certain benefits such as free gym service, event space at a discounted price or free of cost, access to various amenities, Networking opportunities, etc.
Similarly, DAOs have many benefits, such as networking with like-minded people, new opportunities, alpha updates, etc.
And let me tell you, these DAOs are not something that came in new to the space.
DAOs have been there for decades now, and it’s just that we were not aware of it.
To give you an example, one of my gangsters (gaurang.eth) is a DeFi consultant, and he has been part of the FWB DAO for a long time, so he has been getting so many benefits since long.
Just think- 75 tokens, and now they are trading at $55 each.
That’s how this space benefits you if you are playing a long-term game.
Now coming back to the 2 DAOs; while I am waiting for the approval from FWB...
I applied for Bankless DAO too.
For bankless DAO, you need 30,000 $Bank tokens.
Now, let’s check as of January 9th, 2022, what’s the price of the Bankless DAO token...
Again we will visit www.coingecko.com and search for Bankless DAO (BANK).
As we can see, it’s $0.071419.
For bankless DAO, you must hold 35,000 BANK.
Make sure to visit their website for in-depth details about the DAO.
If you are new to this space 1st, I would recommend DYOR (do your own research) and 2nd to buy this cryptocurrency (in India).
I would highly recommend you to use Uniswap or swap using Metamask, i.e. swapping ETH to Bank tokens.
Now let’s learn how to add custom token (which you have bought) to your Metamask.
(click here to learn how to create a metamask account)
Let’s say you want to add the BANK token here.
The 1st method is via Metamask.
And to do that 1st you will have to go to coingecko.com
Search for the BANK (bankless DAO).
You will see a contract address; copy the address….
Go to Metamask (extension), click on Assets, scroll down, and you will see import token.
Once you click on import tokens, click on the custom token.
Paste the token address…
Since I have already imported the token, it shows ‘token has already been added’.
But once you paste the address, click on Add Custom Token.
And if you hold that currency, you will be able to view it on your Metamask, just like ETH.
Now the 2nd way is using Uniswap.
Go to uniswap.org
Click on the launch app and connect your wallet.
Once it is connected, search the token by its name or paste the contract address which you got from coingecko.com/
Depending on the requirement, you can swap Ethereum from any other token.
Since I have already swapped from ETH to BANK tokens, I won’t do it again, but I can show you how many BANK tokens I got from my etherscan.
So as you can see, I got 36,900+ tokens from 0.9 ETH, which is enough for my membership in Bankless DAO.
NOTE: Always remember to swap tokens considering the ETH price and gas fees.
Think like a businessman who can get some extra $$ by knowing the good time to trade.
To give an example: the screenshot I shared above of uniswap, I am receiving 34,907 tokens at 0.9 ETH, but the transaction I did an hour ago (as you can see on the etherscan screenshot), I may have got lucky and received 35,932 tokens for 0.9 ETH.
So please make sure to check gas fees and ETH prices before you do any not-so-urgent transaction.
There is another website also which you can use, cowswap.exchange.
It is the same as Uniswap, but they don’t take gas fees in ETH; instead, they charge in the same token.
Here is the screenshot for a better explanation.
Now once I had the BANK tokens, all I had to do is join their discord & verify my wallet which has those tokens & boom!
That’s how I became a member of Bankless DAO, and there are many different ways to stay active around the community.
The best way could be to check their discord and understand how things work.
To sum up, you never know that this community or space might reward you just by staying active or playing around here and there.
Similarly, DAOs are an opportunity to expand your knowledge, network around like-minded people, and share your thoughts!
What’s a better way to invest your money than in a community? ;)
Ending today’s DPL with that note! See you tomorrow.
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This was much needed in NFT space....
Amazing in-depth content