Decentralized autonomous organizations are organizations that are built on the ideals of web3. They operate through a decentralized structure. Thus, every member of the community can make proposals, and vote in the decision-making process. In this article, we detail the top 5 DAOs in the crypto space.
- DAOs often function as bottom-up organizations where every member can contribute to the decision-making process
- DAOs are often known to create web3 projects such as decentralized exchanges, lending protocols, and NFT.
- Some of the foremost DAO projects in the crypto space are Lido, Aave, Curve, MakerDAO, and Uniswap.
Uniswap is considered to be one of the foremost decentralized exchanges in the crypto space. The project was launched on November 2, 2018. While Uniswap is most popular for its decentralized exchange, the Uniswap DAO operates behind the scene to give shape and structure to the project.
Like every other DAO, Uniswap DAO makes decisions through voting. The Uniswap community recently voted to reform the community’s voting process. Uniswap currently has a market cap estimated at almost $5 million as of the time of this writing.
Lido DAO has risen in recent times to become a major player in crypto staking. The DAO has grown in popularity due to its multi-chain liquidity-staking protocol with a presence on blockchain networks such as Ethereum, Polkadot, Polygon, Solana, and Kusama.
The Lido DAO thus functions as the central hub that decides on the fundamental parameters of the liquidity staking protocol. This decision process is made possible through the LDO governance token. The Lido DAO has a market cap estimated at around $2 million as of the time of writing.
Also read: What is a DAO?
Aave started out as ETHLend on the Ethereum blockchain. The project has risen to become a top lending and borrowing protocol in the crypto space. Aave’s presence now cuts across blockchain networks such as Harmony, Avalanche, and Fantom.
The Aave protocol functions based on the decision made by community members who vote using the Aave token. The Aave DAO is known to have established dedicated DAOs such as the Aave Grant DAO and the Aave Risk DAO. Aave currently has a market cap of $1.05 million.
MakerDAO is one of the oldest crypto lending protocols around. The project was launched in 2017. MakerDAO is known to issue to DAI which functions as an algorithmic stablecoin that is pegged against the U.S. dollar. The MakerDAO protocol allows borrowers to deposit other crypto assets in exchange for DAI.
MKR holders have a say in the MakerDAO decision-making process. The token grants holders access to protocol governance and other forms of community policy-making. MakerDAO has an estimated market cap of $914,000 as of the time of this writing.
Interesting to read: Buid a no-code DAO with DeCir
The curve DAO is the decision-making community behind the Curve protocol. Curve protocol is a DeFi platform that enables users to swap one cryptocurrency for another. The DAO uses the CRV as its governance token.
The token is also used as an incentive-accrual mechanism for members who actively participate in its decision-making. The Curve DAO has a market cap estimated at over $600,000 as of the time of this writing.
Decentralized organizations are behind some of the most powerful projects in web3. Although the list we have here is not exhaustive, yet, it is evident that crypto DAOs are leading the charge to a viable web3 future.