Notable DAO Projects
Token-based DAO:
* Ethereum:
Ethereum
* Ethereum operates on a Proof of Work mechanism, where miners receive transaction fees and block rewards in exchange for mining new blocks, verifying transactions, and securing the network.
* With the upgrade to Ethereum 2.0 using Proof of Stake, this role will shift to stakers – those who agree to contribute their tokens to validate transactions and secure the network, and are rewarded with fees and rewards.
* Ethereum’s miners and stakers have voting rights on Ethereum Improvement Proposals (EIPs), indicating that Ethereum’s future is highly dependent on the decisions of the members in this DAO.
* Compound:
* Compound is a successful example of an on-chain governance DAO, allowing COMP token holders to participate in voting on proposals within the protocol.
* The introduction of the COMP token has helped Compound maintain a clear growth plan, thereby retaining its position as one of the leading lending platforms in the DeFi ecosystem.
* SushiSwap:
* SushiSwap clearly illustrates the critical role of the community members in deciding the project’s development direction.
* When the community did not approve a proposal to sell SUSHI tokens at a discounted price to venture capital funds, SushiSwap continued to develop without the need for funding from these funds.
Shared-based DAO:
* The LAO:
* The LAO is a prominent decentralized investment fund, operating on a Shared-based DAO model.
* Members participate by contributing capital and receive proportional shares, giving them voting rights on the fund’s investment decisions.
* Currently, The LAO has completed 35 investments in projects primarily on the Ethereum network, such as Gitcoin, Zapper, and Lido Finance, and is considered one of the most active decentralized investment funds.
