No one expected such a diverse set of technologies to be combined into a massive ecosystem when Web3 technology first appeared in the middle of the 2000s. Although full-scale integration has yet to be achieved, the surprising opinion is proving itself wrong by experiencing massive growth in the last decade. Blockchains are one of the most critical aspects of Web3, which has developed as a hub for various applications such as cryptocurrencies, non-fungible tokens (NFTs), decentralised finance (DeFi), and other related applications.
Non-fungible tokens are digital tokens that act as proof of ownership and legitimacy for assets. The main NFT-based applications are marketplaces, games, and launchpads, with marketplaces being the most valuable. Hard-core decentralisation has been the ambition of the crypto community in recent years. This article demonstrates how community-based decentralisation techniques can benefit NFT marketplaces.
A Brief Overview of theWeb3 Marketplace Platform
People can purchase, sell, and exchange NFT-based things on an NFT marketplace. Art, music, film, and fantasy sports are popular categories for Web3 Marketplace. Many NFT marketplaces allow crypto payment methods, including cryptocurrencies and stable coins.
A Brief Overview of Decentralized Autonomous Organizations (DAO)
A decentralised autonomous organisation (DAO) is a protocol usually built on top of a cryptocurrency platform. The protocol has many powers that allow the user to regain control. Instead of one person or a group of humans, the community is managed by computer programmes with predetermined conditions. In today’s blockchain environment, there are a variety of DAOs that focus on various aspects such as governance, talent acquisition, media, social networking, investment operations, ownership, and more. These DAOs aim to end the current organisational hierarchy, which has spread to the crypto realm. As a result, rather than a group of individuals who never truly comprehend the community’s pulse, choices are made by the district as a whole.
What Are the Advantages of a DAO-enabled Web3 Marketplace for Users?
A DAO, in the case of an NFT marketplace platform, functions as a protocol that makes decisions. The following sections may find more about the advantages of a DAO in an Web3 Marketplace.
Users can now check the platform’s policies regarding listing new types of NFT products, auctions, and other features.
The DAO owns smart contracts and listed NFTs, effectively ending traditional autonomy and eliminating human leadership positions from the NFT marketplace platform.
Users can even stake their NFTs on the platform to gain rewards while the DAO makes decisions.
Due to the unregulated nature of DAO, a user’s NFTs or native tokens placed on the NFT marketplace can still be controlled.
Users can also participate in meaningful governance choices like auctions, listing, marketplace adjustments, contract terms revisions, etc.
The token distribution and burning mechanisms, NFT marketplace transaction costs, changing members of the security council, and changing platform policies are all decisions that can be made through a voter referendum.
Influence of User Votes on the Platform
Voting on governance decisions is the ultimate means of ensuring that collective decisions are made in a DAO-enabled NFT marketplace platform. The voting procedure is straightforward, requiring only a few easy steps. First, recommendations for the debate topic are presented to the DAO. After that, community members can vote on the platform after carefully considering the recommendations. Finally, the results are announced, and the adjustments are automatically implemented. Thanks to a DAO, every user can now participate in decisions made in the NFT marketplace platform, and the DAO model’s eventual goal is uniformity.
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How DAO-enabled Web3 Marketplace Users Profit?
Depending on the conditions stated on the DAO that must be met, a user can earn voting privileges in several categories. For example, if a user has more than a certain number of native tokens, they will be eligible for a higher voting category, with their votes having more weight. Furthermore, such permissions allow them more access to the protocol, improving their engagement and making it easier to submit proposals.
Users can receive incentives for staking and delivering NFTs and native tokens to the liquidity pool in a DAO-enabled NFT marketplace platform. These approaches will enable users to make passive revenue while keeping their NFT products (without selling). New channels of rewarding mechanisms are predicted to emerge in the near future. As more such platforms emerge and more minds mix. Yield farming is a novel approach in which users with both NFT and native tokens can earn incentives by staking their assets. Bonuses come in the form of limited-edition NFT products and native tokens. But a user must be qualified by meeting all of the requirements.
As a result, we may conclude that DAO-enabled NFT marketplaces are a fantastic economic opportunity for individuals looking to improve the NFT environment by providing users more control. A few companies can help you develop Web3 Marketplace Development, which employs decentralised autonomous organisations as the governance instrument. Design, programming, smart contracts, blockchain integration, node formation, NFT generation, testing, and deployment are areas where such a company excels. You can also expect DAO capabilities to be smoothly integrated into the platform, with all services being reasonably priced.