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The crypto sphere with its growing competition now belongs to the brainers, who strategize their gameplay accordingly. Whilst rookies have been grumbling of the market being skittish, maestros from the business have been betting smart.
It is widely known that first comers are the most benefitted irrespective of businesses. This holds true in the world of cryptos as well.
Consecutively, while masses in the industry are rushing towards mainstream cryptos, DeFi, NFTs, metaverse, and gaming. Little is talked about DAOs, which seem to be lost in the crowd of diverse assets.
Successively, older hands in the business are looking forward to exploring DAOs, and understanding the in’s and out’s of the business.
Will 2022 Be In The Name Of DAOs?
DAOs last year have spectated stout growth in quantity and quality, count of assets managed by DAOs. And the infrastructure applications that support the operation of DAOs.
For rookies in the business, DAO is a tech built by developers to automate decisions and facilitate crypto transactions. In contrast, the elements of DAO segregates into Community, People, Engineering, PR/Marketing, Product, Treasury, and Business Developments.
As previously mentioned, DAOs are currently sprouting in greener numbers. Successively, the market cap of the sector is up 4.41% at $29,377,519,742 at press time.
While the volume of trades are at $2,570,087,623. The top tier DAOs that include UniSwap, Aave, Curve Dao token, and Maker are scripting greener gains at 3.66%, 6.42%, 8.28%, and 3.22% respectively.
DAOs have contributed significant inputs to the crypto business last year. The creation of the Constitution DAO, and the auction of 13 copies of the U.S Constitution was a major move. In contrast, presently there are hundreds of DAOs managing billions of dollars worth of assets.
The diverse departments include Maker DAOs, Investment DAOs, Social DAOs, Protocol DAOs, Collector DAOs, Service DAOs, Grant DAOs, and DAO operating systems.
Are Limitations Of DAO Holding Back To The Bulls?
The short comings of DAO have been holding back the prosperity of the emerging sector. As the limitations have been intervening the influx of investor traffic.
The list of limitations include lack of regulatory clarity, lack of coordination, smart contract fragmentation and risks involved in sustainability. The space will need to overcome the limitations to script the year in its name.
We can expect the teams resolving the said shortcomings, by bringing regulatory clarity for DAOs. Developing the infrastructure with treasury management tools, and chalking out more efficient ways of operations. Which will be imperative for DAOs in establishing its reign.
Concluding, DAOs hold the potential to yield higher returns for the year with its diversity, and use cases. Provided the limitations collaring the bulls is parted ways with. We can expect the space reiterating its strength from the previous year in much polished manner. That said DAOs should be considered for investments alongside other emerging sectors.