January 27, 2022
 min read

The Intersection of DAOs and Gamification

DAOs work on the principle of aligning incentives across all participating parties to release funds as a project gains momentum and support from the community

A DAO, or Decentralized Autonomous Organization, is a software-based decentralized organization. DAOs can do just about anything a traditional company or nonprofit can: they can provide various services to customers, create and invest in new projects through crowdsourcing, and even generate profit for those holding its tokens.

DAOs work on the principle of aligning incentives across all participating parties to gradually release funds as a project gains momentum and support from the community. 

DAOs have their own internal token economies that bridge a divide between community and governance of a hosted application those community members utilize such as a game, SaaS platform, or other web-based applications.

DAO creators frequently utilize cryptocurrencies as means for organization governance and payment services for their tokens used in their DAO structures. These assets often have an inherent market value at launch and are sold for other cryptocurrencies. 

DAOs are structured as decentralized autonomous organizations, but DAO tokens can also represent other things outside of a conventional business structure, including events, property rights, and even games. 

DAO’s are focused on building the involvement of a community around itself by leveraging social media to generate support with various initiatives requiring voting by its holders.

What does DAO mean for Gamification?

Gamers have traded virtual assets for years, from Second Life’s real estate and World of Warcraft’s gold, to Dota and Fortnite’s cosmetic character skins. Unfortunately, these virtual economies have operated almost exclusively within closed, centralized marketplaces that prohibit players from exchanging with fiat currencies — or even between games.

Players have tried to circumvent this time and time again, resulting in jerry-rigged, untrustworthy markets subject to failure and fraud. Blockchain-powered gaming can break open these marketplaces so players can freely exchange and earn real value from their work and skill without relying on third parties.

Most games are developed and managed by the company that made them. The gaming community has to accept whatever direction the company takes for the game. The power to make decisions is concentrated within very select individuals of the organization. 

If a game is a DAO, it means that the power lies within the community. Community members influence the significant decisions of the organization, and the direction of the game will be decided by the community members that have a stake in the organization.

Having a stake in the game means you get to have a say in the game development decisions, giving the community power to decide the game's future, which is something worth exploring. 

Creative, passionate & driven, he's well suited to his favourite job: his current one, being an entrepreneur

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