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Something Sounds New

Innovation shapes culture and culture shapes innovation.

The Web3 world that we're trying to shape together isn't just about tech - it's predominantly about improving the way we operate, collaborate and create opportunities for one another in this world we share.

It's about taking the power away from the few and putting it into the hands of the many or at least - creating the opportunity to give the voiceless a voice.

Free Artist DAO

The music industry is far from perfect and most would describe it as pretty archaic and top down with the power and control resting in the hands of the Label.

Web3 is giving new hope to empower music makers looking to start creative projects and build communities around them.

While NFT's are becoming an essential piece of any Web3 Musical strategy, It's the DAO's (decentralized autonomous organizations) that hold the largest key to shaping the way artists raise funds for their work and create communities that can share in the future value the artists create.

Spark + Mint is humbled to have had the chance to help one such DAO - The Free Artists DAO, get their ball rolling through core Brand definition and identity work.

Brand definition and artwork direction for Free Artist DAO

DAO Records

From a design perspective, what could be more fun than creating a new record label - let alone a decentralized one called "Free Artistis".

It was and remains one of the most creative and inspired brand work any of us have engaged with in our careers. The brand ambitions were bold: 

  • We wanted to create a warm, inclusive brand that shares a less dystopian vision for the future - more solar punk than "Matrix".
  • We wanted to brand identity to evoke a movement and community with collaboration and support for musicians and artists around the world.
  • We wanted the brand to evoke a feeling of what it means to express oneself freely.

DAO Records for Free Artist DAO

Sprint for Your Freedom

In order to be able to complete our goals for this collaboration in a short period of time and allow our team to be unblocked to activate their community building and marketing efforts and get into Product development mode, we needed to work fast and rely on frameworks and processes to accelerate Brand Development work.

Ultimately, the process was super collaborative and because of that ongoing and constructive approach - we were able to come to an identity we were all excited about.

Stay in The Know!

The Free Artists DAO is still in development. If you're interested to connect with their team re: investment, careers or partnerships - let us know and we'd be happy to make an intro.

Related News

Here’s how Crypto Wallets work… And why you should own one.

Aug 25, 2022
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0
MIN READ
Crypto
Crypto

Crypto Wallets... You've probably heard of them. Even more now that the Web3, Blockchain, and Crypto Industries are booming.

Crypto Wallets… You've probably heard of them.

Even more now that the Web3, Blockchain, and Crypto industries are booming.

However… There are many questions you could have.

For example:

How do they work? 

Are they really that useful?

Is it hard to get one?

And many, many more. But hey, don't sweat it — that's what we're here for.

So sit tight for the next 5 minutes, and discover what a Crypto Wallet is, how it works, and the unparalleled advantages of owning one!

What is a Crypto Wallet, and how does it work?

According to Security.org:

"In its most basic form, a "wallet" is a piece of software you can use to prove that you are the owner of a particular crypto account or address.

You can use a wallet to store cryptocurrency securely or to authorize crypto payments to employees or merchants.

Because each crypto account is unique, a wallet can also be used to manage and verify your online identities. For example, you can use your wallet address instead of an email address to log in to a social media or instant messaging account."

This basically means that a Crypto Wallet is a piece of software that every user should have to prove ownership of a specific Crypto piece. And, just like a wallet would do, it's also used to 'store' Crypto assets safely.

And we use quote marks in 'store' because that's not the technical term.

You see, Crypto lives IN the Blockchain. So instead of storing your assets, a Crypto Wallet holds a private key to them.

Like Coinbase says:

"Unlike a normal wallet, which can hold actual cash, crypto wallets technically don't store your Crypto. Your holdings live on the Blockchain, but can only be accessed using a private key. Your keys prove your ownership of your digital money and allow you to make transactions. If you lose your private keys, you lose access to your money. That's why it's important to keep your hardware wallet safe or use a trusted wallet provider."

Meaning?

Crypto Wallets are convenient, safe, and perfect for any Crypto or Web3-savvy individual… Or for anyone who plans to own Crypto.

Now, let's talk about the two main types of Crypto Wallets.

Cold Wallets vs. Hot Wallets. What's the difference?

Let's talk about Hot Wallets first.

These wallets are stored on Internet-connected devices, such as desktops, laptops, or smartphones. 

This means that… If you're one of those individuals who do transactions more often than not, this might be a solid pick for you.

However, there's a catch.

If your device gets infected or hacked — you'll be in trouble. AKA, your Crypto could get stolen.

Now, this doesn't mean you shouldn't own one — but being aware of their pros and cons is critical for safe, responsible use and protection of your assets.

On the other hand, we have Cold Wallets.

These wallets are not connected to the Internet. You must connect them to a device with Internet access to use them.

It might be inconvenient for users who do more transactions than not, but it's hands down the safest option to keep your assets secure.

Why? Very, very simple:

The only way you could potentially get your Crypto stolen or breached is by losing your device.

That said, Cold Wallets are better for storing more significant amounts of Crypto than Hot Wallets.

Now, let's talk about the different types of Cold and Hot Wallets.

Types of Hot Wallets

There are Desktop Wallets, Web Wallets, and Mobile Wallets.

Desktop Wallets, according to Bitpay are those that "utilize encryption to keep a user's private keys securely stored on their computer hard drive."

Their pros are…

  • Excellent for securely conducting small crypto transactions using a computer
  • Free and easy to use
  • No third-party holds your private keys
  • Some can be used offline for cold storage

And their cons are…

  • Most are online anytime your computer is
  • Potentially vulnerable to malware or computer viruses
  • Anyone who has access to your computer could potentially access your Crypto

On the other hand, we have Web Wallets. These are provided by third parties (normally a Crypto Exchange) offering quick access to a user's holdings via the web.

Following up with Bitpay, their pros and cons are…

Their pros are…

  • Easy to use; generally favored by most crypto newcomers
  • Support a variety of transactions (buy, sell, swap etc.)
  • Account security outsourced to trusted third-party (exchange, etc.)

And their cons are…

  • Requires trusting a third party to secure your private keys
  • Potentially vulnerable to hackers
  • Computer used to access web wallet also subject to threats like viruses, malware and keyloggers

Finally, we have Mobile Wallets.

These wallets are accessible via smartphones. Typically using apps and Internet connection.

Their pros are…

  • Easily send or receive crypto payments on the go
  • Highly convenient and easy to use
  • One of the easiest ways to spend cryptocurrency

And lastly, their cons are…

  • Holdings are only as secure as your phone
  • Account could be compromised if device is lost or stolen
  • Like a computer, phones are potentially vulnerable to viruses and malware

Types of Cold Wallets

There are two types of Cold Wallets: Hardware Wallets and Paper Backup Wallets.

According to Security.org, Hardware Wallets are…

"USB devices that store your private key (I'll explain private keys in the next section). It has a PIN code lock to keep thieves from getting into it. To use a hardware wallet to do a transaction, you connect it to your PC.

The device sends a signature through the USB port, but it never sends the private key itself. Theoretically, this should prevent any malware on your PC from being able to steal your Crypto."

These Wallets are extra safe and can only be accessed through a secret PIN code you should care about with your life. 

On the other hand, Paper Backup Wallets are a bit more… Rustic.

And this is because it's just what it sounds like: A piece of paper.

Following up with Security.org here:

"When you first set up a desktop wallet, you'll be offered a set of seed words that can be used to access your accounts if your device crashes (again, we'll discuss this more in the next section). Under normal circumstances, these words are just used as a backup.

But you can also use these words as a form of long-term storage. Just take the following steps:

  1. Write your seed words on a piece of paper and store it somewhere safe and secure.
  2. Transfer crypto to your desktop wallet.
  3. Delete the wallet from your PC. (Make sure you've done step 1 first!)

Once you've done this, the Crypto is essentially stored on the piece of paper. This means that an attacker shouldn't be able to steal your Crypto even if they install malware on your PC (as long as it wasn't already infected). They would need to steal the piece of paper to get your Crypto."

And now that you know this… There's just one question left to answer:

"Which one should I choose?"

The general recommendation would be to always use a Cold Wallet.

Only because it's way safer than any Hot Wallet.

Yet…

The Web3 space is fast-paced as it gets. If you're into Blockchain, you'll be more than likely performing transactions more often than not.

So Hot Wallets might come in handier if that were the case.

Bottom line?

There's no better pick. It's up to you and your particular needs.

We know, we know… It could be a bummer.

But hey, we could help you decide!

The only thing you need to do is sign up for our Newsletter!

Because that way, we'll be able to send you weekly updates on everything about Web3 Wallets, Crypto, Blockchain, and anything else.

Click here, leave your email address, and you're all set!

Again, thanks for reading, dear Crypto enthusiast — let's catch up with another subject soon!

- The Spark + Mint Team

Here’s why Big Venture Capital Companies are opening Crypto funds

Aug 22, 2022
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0
MIN READ
Crypto
Crypto

The world's most prominent Venture Capital firms are officially turning their heads on Blockchain technology... Opening Crypto funds. Why? Find out in today's blog post.

Great news for the Crypto community:

The world's most prominent Venture Capital firms are officially turning their heads on Blockchain technology… Opening Crypto funds.

Challenging the Crypto Winter panic, these big risk management and investment companies are making bold moves, making people wonder why.

But…

We believe that we have the answer. And it's backed up by numbers.

So, if you're here to discover why big Venture Capital companies are opening Crypto VC funds… You're certainly at the right place.

Now, sit tight, and let's get started. Shall we?

What is a VC?

Acronyms could get confusing. So let's explain this sophisticated term right away:

According to Investopedia, a VC (or Venture Capital) "is a form of private equity and financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and other financial institutions. However, it does not always take a monetary form; it can also be provided in the form of technical or managerial expertise. Venture capital is typically allocated to small companies with exceptional growth potential, or to companies that have grown quickly and appear poised to continue to expand."

Meaning?

Venture Capital is not strictly referring to a specific type of company but is a form of investment. More specifically, an investment coming from private investors (AKA not listed on public stock exchanges.)

Some famous VCs include…

  • Tiger Global Management, from New York, USA
  • New Enterprise Associates, from Chevy Chase, MD, USA
  • Sequoia Capital, from Menlo Park, CA, USA

And more specifically, some Blockchain-savvy VC firms involved in Crypto VC Funds are…

  • Coinbase Ventures, from San Francisco, CA, USA — with 254+ Blockchain and Crypto deals
  • Digital Currency Group, from New York, USA — with 223+ Blockchain and Crypto deals
  • AU21 Capital, from San Francisco, CA, USA — with 212+ Blockchain and Crypto deals
  • NGC Ventures from Singapore — with 211+ Blockchain and Crypto deals
  • Pantera Capital from Menlo Park, CA, USA — with 171+ Blockchain and Crypto deals
  • LD Capital from Beijing, China — with 166+ Blockchain and Crypto deals

Why are more and more VC funds popping up in the Crypto space?

It's not a booming fashion. In fact, it's been a trend since way back in 2018.

Back then, VC funds acknowledged the potential of Blockchain technology. They were just not sure about how to make money from it.

Quoting an article from Vox:

"Venture capitalists over the last year have disagreed over how they should structure their firms to capitalize on a new type of investing they weren't set up to do.

VC firms, obviously, hold cash. They own stock in private start-ups and sometimes in public companies. But VC firms, typically, do not own cryptocurrencies like bitcoin or Ethereum, never mind potential, still-being-built cryptocurrencies.

So nearly all of the top tech investors over the last year have been meeting internally and reviewing documents to assess how they can equip themselves legally and financially to invest in ways that don't fit with their traditional business model."

There was a clear intention of deep-diving into Crypto. But, clearly, these VC Funds are cautious about where they put their money.

"Tech investors agree there is money to be made in cryptocurrency. They just don't agree on how to make it."

Fast forward to 2022…

They are opening more and more Crypto Funds.

So, what changed?

Or, in other words, the question itself would be…

Why is Venture Capital still looking up to opening more Crypto VC funds when Crypto Winter could have scared them off?

The answer is simpler than you might think…

There's a high chance that, according to these VCs' risk management experts, Crypto will recover its value sooner than later… 

And they don't want to get left behind.

Like Fortune says:

"As of last Friday (July 22, 2022), VC investments in the space have reached $18.3 billion so far in 2022. That's nearly triple the amount invested in 2020 and also on pace to exceed 2021's record haul of $32.4 billion, according to Steven Alexopoulos, an analyst at J.P. Morgan.

Some of the crypto fundraising rounds this year have been substantial in size. In January, Fireblocks, a digital-asset infrastructure start-up that has since partnered with the likes of BNP Paribas, raised $550 million at a valuation of $8 billion. In March, Yuga Labs, the company responsible for Bored Ape Yacht Club NFTs, raised $450 million at a $4 billion valuation."

Again, meaning…

It's time for them to buy, just like TechCrunch explains further:

"For investors like us, it's time to buy," Miroshnik told TechCrunch. "Valuations have come in and great companies are now available at a more reasonable price."

"Generally, there is a big difference between people who are at the surface of understanding this space — those funds might take a backseat — but true crypto-native funds with conviction will continue to invest heavily," Saurabh Sharma, head of investments at Jump Crypto, said to TechCrunch. 

"This time is where we find the best long-term-thinking entrepreneurs."

That said, there's definitely a risk in any investment. But also several untapped benefits.

This leads us to the next topic, which is…

What are the risks and benefits of VCs in Crypto Communities?

Let's start off with a fact. Not a benefit nor a risk. It's a fact:

Whether it is a Crypto VC Fund or not, VC funds will greatly impact whether a community invests or even considers a project legitimate.

Why?

Because they trust big names. And they also trust that, in most cases, these VC Funds will have performed enough research to think whether an investment is safe or not.

However, that's not always the case.

This leads us to an imminent risk…

Due diligence.

For instance, according to the Coin Telegraph, most VC Funds were LUNAtics once.

"VCs look at cap tables and see who else invested. LUNA was widely considered a "blue chip" by then, leading among crypto analysts and then reputable institutions, such as Three Arrows Capital, Pantera Capital, and Coinbase Ventures. Pantera notably got its LUNA exit timing right, while Three Arrows Capital is in liquidation and has filed for bankruptcy.

Everyone wants to be the smartest guy in the room. "With the LUNA example, VC backers must be seeing something you don't, was the thought," according to that risk analyst.

"It always was a Ponzi, no point mincing words," he tells Magazine.

He argues that "VCs can distort everything, even who supports what L1 chains. It's a PR war; VCs turbocharge the machine. I call it the VC hunger games."

This is one high-profile example of the perils of VC funding for crypto communities."

Yet, on the other hand, there is a significant benefit of VC Funds getting involved more and more often with Crypto and Blockchain projects:

More protection for potential investors.

Following with the Coin Telegraph here as well:

"Lurie, founder of Shipyard Software, agrees that VCs can work hand in hand with decentralized governance and bring major benefits to the community. He argues that in Crypto, it's "necessary to decentralize governance because the community demands it. It is also a necessity to make the VC model work." VC funding is a competitive and a regulatory necessity to building a viable company, argues Lurie.

"Decentralized governance is a trade-off with nimbleness. It's tough to start a fully decentralized company from day one. You need to strike a balance. Start-ups are in a constant battle, and few people make it to the end of that journey." 

"One of the best reasons for VC-backing is governance — a partner on a deal will hold founders accountable," he says."

That said…

VC Funds opening up to the Crypto and Blockchain space has ups and downs. But what's more — several layers are left to explore that go way beyond risks and/or benefits.

And that's something we can't answer, sadly.

Why?

Because only time will tell. Yet, it helps to know what has happened and learn how to read the room to save up potential heartbreaks, such as the Luna incident.

Which, speaking of the devil…

There's another big question that begs a brief explanation:

"Do I need a VC to start an effective Crypto Business?"

Yes. And no.

The good ol' answer of "it depends" is applicable here.

The reasoning behind this is that… It truly depends on the structure, goals, and resources available for your Crypto business (or project if it's still in the works).

Entrepreneur says it best below, talking from a Start-Up approach to VC Funds:

"The traditional start-up approach of building a business plan, making market estimates and pulling funding from VCs is riddled with risk and misconceptions. In reality, less than 1 percent of start-ups have raised capital from VCs. Venture capitalists generally invest only 1 percent of their own funds. The rest is from investors. The majority of those investors fail to earn a profit after fees from the VC firm. Even successful VC firms generate 80 percent of their revenue from 20 percent of their investments."

However, the likes of Forbes believe that approaching VC is a must if you're plotting a Crypto Business move at scale:

"Despite the risk involved, you're going to have to be able to approach and persuade venture capital (VC) firms to invest in your project.

Equity financing isn't for you? There's always the initial coin offering (ICO) route if you're specifically interested in creating your own token. However, this comes with its own share of serious financial risks and legal liabilities that you have to be mindful of. 

The bottom line is that you're going to need people skills. Practicing public speaking and presentation skills will serve you greatly in your crypto entrepreneurship, as there are several blockchain-based VCs willing to lend their ear to your project."

Bottom line?

It's not strictly necessary to approach VC Funds. But hey… It helps a ton.

You can skip a lot of headaches by having a well-structured business plan, plus financing.

So, our take would be…

VC Funds are always helpful. But you're not going to die if you can't land one.

Spark + Mint's approach to Creative Capital:

You may be wondering…

"What's creative capital? And why does this even matter?"

So bear with us for a minute. Because this does matter if you're interested in attracting VC Funds for your next Crypto Project.

Creative Capital is nothing more than the capacity of an entity to design, implement, and express new and complex possibilities through creative action. 

Or, in other words, it's the human effort behind making a complex project comprehensive for uneducated audiences.

Why does this matter?

Because if you're an innovative company representing the Crypto space, you must know the main challenge in this Web3 space is to convey new ideas appealingly.

Both aesthetically and pragmatically speaking.

That's what we do at Spark + Mint.

We partner with Crypto, DeFi, DAOs, and Blockchain-related companies to bring their ideas to life with top-notch design, strategy, and copywriting.

We could blurb and say we are the best and that your project is in safe hands…

But we choose not to. We'd love to show you instead.

So, click here to book a call with our CEO, Jason Goodman, and let us explain how we could take your project to the next level with apples and pears.

And you can also sign up for our Newsletter now that you're here.

Yes, you can!

Our Newsletter goes out weekly with red-hot information about Crypto, VC Funds, Blockchain, Web3, and everything in between — explained objectively to appease the most knowledge-thirsty readers.

But that's not it…

If you need further information, got a Web3 project in mind but don't know where to start, or just want to discuss partnerships… Spark + Mint Invests!

Just click here to reach out to Jason Goodman, our CEO. Prepare your best pitch, and let's see what comes out!

Again, thanks for reading, and see you next time!

- The Spark + Mint Team

Starting a DAO from Scratch: Here’s what you need to do.

Aug 15, 2022
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0
MIN READ
DAOS
DAOS

Currently blowing up in popularity, it seems like DAOs are all the rage... But how do you start one, and how exactly do they function? Find out in today's blog!

So you want to start a DAO…

Well, the first thing you need to do is read this blog.

See, DAOs are the latest fashion for a reason. And getting started could seem like a monumental task if you don't know where to begin your research.

But hey — don't sweat it.

At Spark + Mint, we're a team of experts in everything from Web3 to Decentralized Autonomous Organizations… So you're at the right place to learn how to start your next DAO adventure while skipping the learning curve.

Or at least most of it.

So, without further ado…

Let's talk DAOs, shall we?

What is a DAO?

A DAO is an acronym for Decentralized Autonomous Organization. This is an emerging legal structure for organizations with no central governance structure. 

Every member within a DAO shares a common goal and responsibility of acting in the organization's best interest. Thus, the community has an intrinsic value here — something that almost every Web3, Crypto, and Blockchain entity shares.

It's been popularized by cryptocurrency enthusiasts and Blockchain technology lovers to enhance decision-making in a bottoms-up management approach.

Sounds lovely, right?

Well, that's not it. There are several layers to peel off to get to the bones of it.

Like Investopedia says, there are many benefits and crucial factors of getting started with a DAO, like:

  • A decentralized autonomous organization is an entity structure in which tokenholders participate in the management and decision-making of an entity.
  • There is no central authority of a DAO; instead, power is distributed across token holders who collectively cast votes.
  • All votes and activity through the DAO are posted on a blockchain, making all actions of users publicly viewable.
  • A DAO must ensure security is prioritized, as exploits can leave a DAO drained of millions of dollars of its treasury savings.

But it all began long ago in a computer lab far, far away…

The DAO: The First Decentralized Autonomous Organization, probably ever

Continuing with Investopedia on this subject…

"The DAO was an organization that was designed to be automated and decentralized. It acted as a venture capital fund, based on open-source code and without a typical management structure or board of directors. The DAO was unaffiliated with any particular nation-state to be fully decentralized, though it used the Ethereum network. 

The DAO launched in late April 2016 thanks to a month-long crowd sale of tokens that raised more than $150 million in funds. At the time, the launch was the largest crowdfunding fundraising campaign of all time."

But… It was not just smiles and laughter.

Eventually, things came crashing down, as this was one of the first Web3 attempts the Internet remembers.

Clearly, there was a lot to fix. The intention was there, but when you're managing capital… Security must be on point. That was The DAO's Achilles heel.

Like Gemini says:

"The DAO had raised more than $150 million from more than 11,000 investors, making it one of the largest crowdfunding campaigns in history at the time. However, even before the token sale had concluded, several onlookers expressed concerns about vulnerabilities in The DAO's code. More specifically, computer scientists were concerned that a bug in The DAO's wallet smart contracts would allow them to be drained. While programmers attempted to fix the bug, an attacker exploited the vulnerability and began siphoning funds from The DAO.

In the meantime, the Ethereum community debated how to respond to the attack. The DAO's failure would not only mean financial loss for investors, but it also bore dire repercussions for the nascent Ethereum network. The DAO had become such a heavily invested project that its contracts contained approximately 14% of all ether (ETH) in circulation at the time. At only one year old, the promising Ethereum technology and community faced a genuine existential threat…

…​​initially, Ethereum founder Vitalik Buterin proposed a soft fork of the Ethereum network, adding a snippet of code that would effectively blacklist the attacker and prevent them from moving the stolen funds. However, shortly after that, the attacker — or someone posing as the attacker; it has not been verified — published an open letter to the Ethereum community claiming that the funds had been obtained in a "legal" way, following the rules set out in the smart contract. The attacker also said they would take legal action against anyone who attempted to seize the ether."

Words less, words more… This ended up with two competing Ethereum Blockchains. One of them being the pre-forked version known as ETC, and the other Blockchain presently known as Ethereum — now one of the World's most used Blockchain channels.

So, was The DAO crisis crucial? Yes, it was.

But luckily… It didn't affect Web3 negatively. In fact, it opened up the gates to new and enhanced security procedures.

How does a DAO function as a part of Web3?

At a high level, Chainalisys explains how a DAO works here:

  1. DAO founders create a new cryptocurrency, known as a governance token;
  2. They distribute these tokens to users, backers, and other stakeholders;
  3. Each token corresponds to a set amount of voting power within the organization. Each token also corresponds to a price on the secondary market, where it can be bought and sold at will.

While this process is often described as a way to decentralize power, governance token data suggests that DAO ownership is highly concentrated.

Furthermore, IT Business Edge says that:

"In a Web3 world, the management of platforms and systems is through the consensus decisions of its users. They also have ownership and control of their data.

Early adopters believe that DAOs have the potential to completely change the way that humans think about cooperation, collaboration, and collective resources. DAOs present an opportunity for communities and organizations to rethink how we work together to provide more equitable participation and incentives.

If anything, with the trend towards remote work because of the pandemic, DAOs are much more amenable to people. They essentially provide for operations across any geography at any time."

But… If this Web3 effort requires every involved individual's willingness to push in the same direction, how does disruption or innovation happen?

That could cause several delays in decision-making… Or missed opportunities on genius ideas because of roadblocks.

Yet, that's not the main issue for DAOs in the Web3 space as of today: It's security.

As it's still in the early stages, most of these companies are offering big stacks of cash to whoever finds significant bugs to fix — always trying to protect themselves from another "The DAO" crisis.

What does it take to start your own DAO, anyways?

Getting started with a DAO doesn't have to feel like a mission impossible.

In fact, there are a few steps to create one effectively — which, to be frank, are not just clapping and making it happen… But you shouldn't have BIG trouble if you do things right and seek some advice.

To get started, you'll need to:

1. Define the Structure of your DAO

This means: Even before determining what tools you'll use, you need to understand the WHY behind your efforts. If there is a problem… How are you planning to solve it?

Why are you trying to fix what's not broken if there's no problem?

So, in short, you must figure out first:

  • What are your short-term and long-term goals for this project?
  • Given your goals, what kind of structure do you want to use?
  • How are you going to approach decision-making?
  • What will the benefits look like for customers, users, and possible investors?

Ask yourself these questions, and then move on to the next step.

2. What Type of DAO Do You Want?

Now that you have an idea of the problems you want to solve, it's time to determine what framework you should use to create your DAO.

101 Blockchains does a great job explaining this step here:

"The second step in starting a DAO focuses on determining the type of DAO you need. Decentralized Autonomous Organizations, or DAOs, are still in the stages of infancy and can serve many use cases. Therefore, you can choose many practical paths for creating your DAO according to your objectives. You must go through different types of DAOs and their functionalities to find the models which can fulfill your goals. Some of the most common types of DAOs include protocol DAOs, social DAOs, venture DAOs, collector DAOs, and social media DAOs. 

At the same time, you must also focus on common goals between DAOs and traditional businesses for improved efficiency. For example, if you are wondering how to start a DAO, you can use a nation-state governance framework for mapping out the general DAO structure. With a good overview of the type of DAO you want, you can develop a definitive approach for building the DAO."

3. Determine the Use Cases of DAO Tokens

See, DAO tokens can be used for several things. Rewards, voting rights on the company's direction, and other types of benefits. But, these DAO tokens can play a massive role in the DAO creation process.

So, if you want to push things forward and make everyone happy… Be wise in determining the types of use you'll give your DAO tokens.

4. DAO Token Allocation, Supply, and Rewards

Sure, pricing is essential. But it's not everything.

Token supply matters, and setting the demanding standard instead of just offering a random value of the original coin supply is what will get your DAO far.

Let's say you've cracked the initial coin supply:

Now, you'll need to focus on allocating these DAO tokens.

This means finding focus on providing appealing rewards to your community.

We say this because there are countless projects STUCK on finding out the best way to make their DAO work while also being tangled trying to discover new ways for token distribution.

So, token utility? Hard nut to crack, definitely. That if you do it yourself, obviously.

5. Create the DAO

101 Blockchains elaborate more on this by saying:

"Many companies opt to develop their own systems, while some choose DAO tools and templates to create the DAO. The tools and templates can help you define the legal framework for the DAO you wish to make. In addition, the tools also offer the required infrastructure for DAO token minting tools, creating the DAO name, and supporting the teams and founding members. 

Some of the popular Ethereum-based DAO tools for starting a DAO of your own offer multiple functionalities. You can choose Aragon, the comprehensive DAO toolkit with functionalities for dispute resolution and governance. Here are some other promising DAO tools you can use for creating your DAO."

How to get involved in DAOs?

This is also BIG.

See, before allocating your resources, money, time, and energy to building your next Web3 project or DAO, you need to understand how these work from the inside.

Meaning?

Joining a DAO to see what they do.

That said, it'll be ideal to find one, buy some of its currency, and get familiar with its processes. A great way to do this is by exploring pages like DAOlist and DeepDAO to find exciting projects that align with your particular goals, taste, and values.

Most will highlight their core mission, governance structure, and guiding principles.

But, if you're more of a hands-on type of person…

We recommend diving deep into the subject by directly collaborating with the DAO.

You can join their Discord channel, introduce yourself, and engage in conversations to contribute.

And, if you're more of a seasoned Web3 professional or have an ability you could exploit like design, programming, or copywriting…

You could apply for a job. These projects are constantly hiring and benefiting from a diverse range of skills. For example, your contribution will always depend on your abilities and your hunger for knowledge and changing how the Internet works.

Some popular DAOs to keep an eye on:

Now that you know what it takes to create your own DAO, it's also important to keep an eye on what seasoned companies are doing to minimize learning curves here.

For instance, Binance considers these three DAOs (MakerDAO, Aave, and Uniswap) the most prominent ones to date:

MakerDAO

MakerDAO is one of the oldest, most successful DAOs on the market. The organization manages the crypto-collateralized DAI stablecoin. They split proposals into Governance Polls for non-technical decisions and Executive Votes for smart-contract changes. Anyone holding MKR, the project's governance DAO token, can participate. 

Aave

Aave is a DeFi lending platform on Ethereum that lets holders of the ERC-20 token AAVE or staked AAVE participate in its DAO. Along with project changes, Aave governance also votes on new projects built on the protocol and Aave Grants to fund ideas.

Uniswap

Uniswap is a multi-chain Automated Market Maker (AMM) that has inspired a generation of DeFi projects. It's one of the largest decentralized exchanges, and UNI holders can vote on and create proposals. To submit a new proposal, you need to hold at least 0.25% of the UNI's total supply. To encourage healthy discussion, there is a governance forum for community members to debate changes.

Want to start your next DAO project? Read this:

At Spark + Mint we're committed to helping our community discover new ways to impact the World through Decentralized Autonomous Organizations, Web3, and Blockchain Technology.

That said, we'd be more than happy to give you a walkthrough of some of the projects we've been working on — and answer any questions you might have.

Our CEO and Founder, Jason Goodman, is taking some calls this week to Q&A some DAO-related questions.

And you're cordially invited to schedule a call with him.

Brightside? If you decide to move forward, you'll skip the trial and error, learning curve, and deadly mistakes getting started with a DAO could mean.

And what's more — even if you decide not to move forward… You'll still leave knowing exactly what needs to be done to create your next DAO project.

You can schedule a call with Jason by clicking here.

P.S. Not ready for a call? That's okay! You can still subscribe to our Newsletter and get familiar with DAOs, Web3, and Blockchain every week — for free!

That was it for today's blog, friend.

Hope we were able to provide value!

Until next time,

- The Spark + Mint team