Decentralized autonomous organizations are often created around specific courses. They could exist as investment hubs, or as centers for creative minds to collaborate. They could also be created to support charity courses or to facilitate the building of web3 infrastructures. Irrespective of the reason behind the creation of a DAO, DAO members can still make money. In this article, we explain the various ways by which members can make money from DAOs.
- DAO members can make money by collectively investing in other web3 projects.
- They can also make money through collaboration. This could be by creating NFT collections or creating music NFT.
- Members can also make money from DAOs by helping with the day-to-day tasks of the project.
Making Money through Investment
More often than not, projects are established for the purpose of generating income and making profits. Some DAOs are built on this same premise. Investment DAOs offer their users the opportunity to invest and make tangible returns on their investments.
Members belonging to such DAO have exposure to both on-chain and off-chain investment options. These investments can be in promising web3 projects, or traditional assets such as stocks and physical properties.
Members are often required to hold the DAO’s native token in order to partake in investment options. In this case, the DAO’s native token also serves as its governance token which grants holders the right to vote on community proposals.
The DAO invests funds on behalf of its members (as a group) and shares returns with the community. Returns could be airdropped to members’ wallet addresses or could be redeemed through smart contracts. Notable investment DAOs include DAOventures and DAO.VC.
Also read: Top 3 reasons why DAOs need smart contracts
Making Money through Collaborations
The option to make money through collaboration is quite appealing for DAOs that serve as creative hubs for members. A community of artists and creatives will naturally gravitate towards collaboration. Thus, allowing members to work on projects such as NFT or music.
For example, members can make money from an NFT DAO by contributing to the creation of new collections. This could be in the form of direct artistic contributions, making valuable inputs, or helping to shape the narrative around digital art. Holistically, this kind of collaboration thrives on the experiences and expertise of members.
The DeCir infrastructure is built to support these kinds of collaboration. DeCir also helps NFT DAO projects with multi-market listing. It also provides them with the tool needed to manage revenue sharing and royalty splitting. Here is a piece to help you learn more about DeCir’s royalty splitter tool.
Making money by working for the DAO
The only thing that distinguishes DAOs from traditional organizations is the manner of setup. DAOs are decentralized with no hierarchical structures. DAOs share similarities with traditional organizations in other areas. One such similarity is that both kinds of organizations require the services of individuals to carry out tasks as and when due.
DAOs mostly rely on smart contracts to create rules and implement changes. However, tasks involving community management, investment research, organizing community events, and project implementation often require humans.
In this light, DAO members can make themselves available when such opportunities come up. Although it must be stated that some of these positions can exist on an ad-hoc basis.
Members can make money from DAOs. The manner could differ based on the type of DAO and the reason for its establishment. Notwithstanding, decentralized autonomous organizations function like every other organization. The only difference is in the way DAOs operate.