In layman’s name when we say Decentralized, we understand that something can’t be controlled by a single central officer. It is owned and controlled by all its members or partners. That is exactly what the DAO is.

Starting with the basics, it is based on blockchain technology known for being decentralized. Thus, the DAO represents the Decentralized Autonomous Organization. DAO is an organization run by a group of people who do not have the usual corporate leadership, formulate their own rules, and make decisions based on smart contracts in the blockchain. All of its rules and transactions are transcribed into the blockchain, thus eliminating the need for any central organization.

Bitcoin is widely regarded as the first DAO. However, another popular source for the Decentralized Autonomous Organization dates back to 2016 when a few members of the Ethereum community put what they called ‘DAO’ into the Ethereum blockchain. The developers have developed it to operate as a business fund without any board of directors. In fact, anyone can submit their views to the public in order to secure support from the DAO.

DAO and a regular Company

DAO operates as a company but without any director or board of directors, instead operates seamlessly and independently. The main agenda of establishing an organization is to unite a community of like-minded people working with the same goal.

This organization works by the rules and is created by its community and makes decisions based on smart contracts in the blockchain. Those rules are written in the organization’s code by smart contracts — algorithms that work when certain conditions are met. Blockchain records all transactions that facilitate the smooth operation of an organization.

It’s working

Every DAO has a built-in treasury to maintain its digital currency that members can only access with the consent of the party, and decisions affecting the party are made collectively at a set time.

As everyone participates in team risk, everyone has a vested interest in ensuring that it works as effectively as possible. Team members also share the prize. To purchase from DAO, you must purchase any crypto token that DAO is listed to continue. Most of the time it will be a different sign from DAO.Generally, a person will need to own a token holder in order to participate in DAO. Token ownership comes with administrative / voting rights and can influence decisions in an organization by creating and voting proposals. This includes decisions about the future of a divided organization, spending habits, and more. If a person has more tokens, their voting power will be higher.

DAO and NFT: Link between these

What NFT is first: a non-fungible token is something that cannot be copied or modified. A simple example is the statue of liberty or the Mona Lisa. These are not fungible.

In the crypto world, crypto Ethereum can be replaced or exchanged but the profile picture of an NFT project with graphics with each story written individually is non-fungible because there is only one that is the same as mine.

What follows is how the DAO and NFT are connected. One of the great things about the relationship between NFT and DAO is that one can help build one. Both NFT and DAOs are built on smart contracts but can also be built together.

You can encrypt your NFT smart contract to finance your DAO so that every time an NFT is sold, a percentage of the profits is automatically sent to the DAO. These funds help him achieve his goal, one of the goals on the road map, or introduce a new project, depending on other smart contracts available.

Generally, artists have to sell their NFT to DAO in exchange for DAO tokens. NFTs, in a way, act as collateral for issued tokens and provide token value. Additionally, token holders receive voting rights from the organization.

Asset Ownership& Governance

One way in which DAOs help the NFT industry is through joint ownership of assets. Often, investing in NFTs, especially blue-chip projects, requires significant investment. Of course, not everyone can afford this. Therefore, some DAOs were established to allow a group of people to collectively own the high-value NFT without spending thousands of dollars.

Another important area where DAOs help NFTs manage public administration or Governance. DAOs are a great way for fans and creators of the NFT project to come together and decide its future. In some cases, the community creates Decentralized Autonomous Organizations and not the project itself.


Strong community support is essential to the success of the NFT project. For celebrities and celebrities who already have fans, community building is a walking tour of the park. This is where the collections of NFT creators ruled by private organizations came into the picture. In fact, these are a bunch of NFT creators that help raise revenue, marketing, community building, and more.



APE DAO was started by Bored Apes collector Kylo.eth. With this, anyone can own parts of these much-needed NFTs. In addition, the public governs the DAO with $ APED charts.

Shark DAO

SharkDAObrings together a group of strangers to raise funds to find extraordinary NFTs. However, it only focuses on Nouns, a productive NFT art project.Here, members will receive SHARK tokens in exchange for ETH. With this symbol, members can vote and “direct policy” and “how to use resources”.


DAOs have several use-cases within the NFT industry. In the coming months and years, these use cases are only going to grow.  Decentralized Autonomous Organizations could also become a must-have for NFT projects. However, for these to happen, these decentralized organizations need to resolve existing security issues.