Blockchain gaming is on the rise for a number of reasons. From true digital asset ownership and reworked in-game economies to gaming governance. Thanks to blockchain technology, for the first time ever, players can directly participate in the governance of their favorite games. This is achieved through a brand-new Web3 structure — DAOs.
What is a DAO?
A DAO, short for Decentralized Autonomous Organization, is an innovative new concept that leverages blockchain technology to create an organization that operates in a decentralized and autonomous manner. It’s best described as a social organization that offers full transparency without the need for traditional centralized management or hierarchical structures.
In a DAO, all decision-making processes, governance rules, and operations are executed through smart contracts on a blockchain network. These smart contracts are pre-programmed and define the rules and parameters for the organization’s functioning. This allows participants within the DAO to have a say in decision-making, propose and vote on changes, and collectively determine the direction and actions of the organization.
So, what’s the difference between a DAO and a public company? In the case of DAOs, tokens play the role of shares. Unlike public companies, where people can own stocks that do not grant voting rights, such as preferred stocks, DAO tokens always give users a say in the decision-making process. Another huge advantage of DAOs over traditional companies is that they’re global by design due to the nature of blockchain technology. Anyone can purchase the tokens of a DAO with no need to register anywhere. This makes DAOs quite attractive, as anyone in the world can become a token holder.
Key characteristics of a DAO
Let’s take a look at some of the key characteristics that make a DAO what it is. Just as the name suggests, the most important ones include decentralization & autonomy.
- Decentralization — The decision-making power in a DAO is distributed among all token holders, ensuring an inclusive approach to governance, making it one of the most democratic organizations to date.
- Autonomy — DAOs are designed to operate autonomously based on predefined rules and smart contracts, minimizing the need for centralized authority or external intermediaries. This means more efficiency and no chance of human errors.
- Transparency — Once on the blockchain, always on the blockchain. The technology provides transparent and auditable records of all transactions and decisions made within the DAO, enhancing trust and accountability.
- Token participation — In order to allow users to participate in the decision-making process, DAOs often utilize tokens or cryptocurrencies as a means of governance. Token holders have voting rights, and they can often stake their tokens for rewards or participate in other activities within the organization.
DAOs offer a new paradigm for organizing and coordinating activities in a decentralized manner, enabling more inclusive and transparent forms of governance and collaboration.
DAOs in Blockchain Gaming
As it becomes evident from the info above, DAOs offer some big advantages over traditional structures, making them great for building a solid community, especially in gaming. DAOs play a significant role in blockchain gaming and bring several important benefits and opportunities to the sector.
In traditional gaming, decisions regarding the title are most commonly made by the developer/publisher behind it. Blockchain gaming offers players an opportunity to change that for the better through community governance. Blockchain gaming DAOs empower players and stakeholders within the community, giving them a direct say in the future of the organization.
Game Governance
Through voting mechanisms and participation in the DAO, players can directly influence game development, rules, asset management, and even funding allocations. This level of community involvement is something we’ve never seen in the traditional gaming scene. It fosters a sense of ownership, engagement, and inclusivity in shaping the gaming experience. Thanks to DAO governance, players get to truly build the game they want to play in a fair and democratic way.
Asset Ownership
One of the biggest changes brought by blockchain gaming is the addition of real asset ownership. In-game economies feature non-fungible tokens and other in-game assets that can be tokenized and owned by the players. In the meantime, DAOs provide a mechanism for managing and governing these assets collectively. The transparent and decentralized nature of a DAO ensures that players have a stake in the virtual economy and can participate in decisions related to distribution, monetization, and more.
Economic Incentives
Some of the most popular blockchain gaming models include Play-to-Earn and Play-and-Earn. While there’s a clear distinction between the two, both models allow players to earn real-world value by participating in the game. Through DAO governance, players can collectively determine the economic incentives, such as token distribution and rewards within the game. This creates opportunities for players to have a more active role in shaping the game’s economy and earning potential.
Community-driven Development
DAOs enable community-driven game development, giving players the opportunity to collaborate with the developers. This includes anything from creating new features and mechanics to characters, art, music, and mods. Players can propose ideas, participate in funding, provide feedback, and make decisions related to the different stages of game development. This type of collaborative approach can lead to more innovative and player-centric game experiences.
Trust & Transparency
DAOs leverage the transparency and immutability of blockchain technology, providing a level of trust and accountability in all things gaming. Smart contracts ensure that decisions, voting outcomes, and resource allocations are transparent and verifiable. This not only helps build trust between players, developers, and stakeholders but also creates a more open and fair gaming ecosystem.
DAOs play a crucial role in blockchain gaming, offering a novel approach to governance. By leveraging the power of decentralized decision-making and transparent consensus mechanisms, DAOs empower players to actively participate in shaping the blockchain gaming ecosystem. Through DAOs, players can influence game development in its various stages, as well as asset ownership, economic models, and community-driven initiatives. DAOs create a dynamic environment where the gaming community finally has a direct stake in the success and evolution of the game. By revolutionizing traditional gaming governance structures, DAOs pave the way for more democratic, player-centric, and immersive gaming experiences.
About Myria
Myria is a blockchain game development studio and an Ethereum Layer 2 solution built to scale digital assets, NFTs, and blockchain gaming. Myria utilizes ZK roll-up tech to supercharge its ecosystem and bring the next generation of gamers to the blockchain. Myria has a thriving community of over 500,000 users, and more than 270 blockchain projects are already building on the Myria blockchain. Thanks to ZK technology, users can expect high transaction speeds, 0 gas fees, and free NFT minting.
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