Best Crypto DAO in 2022

What Is a DAO?

We have written extensively about what DAOs are and the role they play in the Web3 ecosystem in the related articles. Read them if you want to know more about how DAOs work. Here we’ll briefly describe the essentials of the technical model.

What Is a DAO Token?

A Decentralized Autonomous Organisation’s cryptocurrency is called a governance token or DAO token. These cryptos’ main function is that they are used for decentralized governance of the blockchain protocol and give their holders the right to vote. The DAO concept assumes that participants in the ecosystem invest in the native tokens of a given platform to vote for a proposal put forward by the community. The decision on the future of the platform is made by all members of the community rather than by a narrow circle of individuals who can only act in their own interests.

Top DAO Tokens

There are several DAO projects in the cryptocurrency market, but few of them have been able to adequately compete with the leading platforms in the decentralized financial ecosystem (DeFi).

Uniswap (UNI)

Uniswap is the leading AMM protocol and DEX on the Ethereum network launched in 2018. Users of the decentralized exchange enable atomic swaps within a specific blockchain. Uniswap became the first and largest DEX protocol on Ethereum to operate on the principle of an automated market maker DAO.

ApeCoin (APE)

APE is a native token issued by Yoga Labs, the creator of one of the most famous and expensive NFT collections called Bored Ape Yacht Club (BAYC) and also Mutant Apes. The token was given for free to the holders of NFTs from these collections. APE Token holders manage the ecosystem and determine how the funds from the ApeCoin DAO fund (created specifically for the development of the project) are used.

Maker DAO (MKR)

MKR is a governance token issued by the creators of MakerDAO and Maker Protocol on the Ethereum blockchain. MakerDAO is a lending protocol where users borrow and lend cryptocurrencies backed by digital assets. The platform leads in the number of locked assets (TVL) among all DeFi protocols, according to DeFi Llama, and the figure itself exceeds $10 billion.

Aave (AAVE)

Aave is the second lending protocol in the DeFi ecosystem in terms of market cap and also the third in TVL after MakerDAO and Curve Finance.

Curve (CRV)

Curve Finance is the leading decentralized exchange in terms of assets locked in the protocol (~$9.7 billion), acting as an automated market maker (AMM) and was founded in 2020. The platform focuses primarily on stablecoins. Curve offers stablecoin swaps and liquidity mining to users on various blockchain networks.

Dash (DASH)

Although this DAO project is not a project in the classical sense and does not even have its own smart contract, it was one of the first to introduce a decentralized governance model.

  • InstantSend: send instant payments
  • PrivateSend: send anonymous payments.

Compound (COMP)

Compound is another lending protocol that allows you to receive and provide loans backed by cryptocurrencies on the Ethereum blockchain. At the same time, lenders on the Compound platform receive additional rewards in the form of DAO tokens called COMP in addition to accrued interest.

Decred (DCR)

Decred is a blockchain protocol designed to enable open governance. A notable feature of this DAO project is that the community itself approves all transactions and changes to the protocol and that the mechanism is based on the original architecture of the Bitcoin network. The goal of Decred is to eliminate the monopoly in blockchain governance.

0x (ZRX)

Ox is an infrastructure protocol founded in 2016. The platform offers a range of smart contracts for trading ERC-20 tokens. It is one of the first decentralized exchanges to operate successfully to date.

Synthetix (SNX)

Synthetix is the leading DeFi protocol releasing tokenized versions of traditional assets. This platform was also the first to introduce the term “synthetic assets”.

Conclusion

In this article, we have discussed the best DAO crypto projects that have rightly become the leading platforms in the crypto space and favourites of the crypto community. The DAO community has every opportunity to demonstrate the advantage of decentralized autonomous organizations over a centralized management model, too. But remember that new projects are regularly emerging that may form formidable competition for these projects in the future.

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Fundraising & Community for Crypto Projects