08: Five DAO coins to consider for investment in 2022
DAOs, or decentralized autonomous organizations, are one of the most promising innovations made possible by blockchain technology. These structures are steadily proving their ability to revolutionize organizations, governance, and investment outcomes.
If you're interested in investing in DAOs but not sure where to start, check out these five DAO tokens that you may want to explore.
Launched in 2020, Uniswap DAO is one of the most popular decentralized exchanges in the world right now. The native token of the DAO is the UNI token. The holders of the UNI token provide voting rights to propose changes in the Uniswap protocol or to change its operations. Before introducing the UNI token, the development team owned decision-making rights. Now, however, the community now has the final say in decisions.
A total of 1 billion UNI tokens are in circulation, distributed among community members, team members, future employees, investors, and advisors. The UNI trade volume rose in magnitude as the DAO reduced the trading fees for some stablecoins.
UNI has a high market capitalization and is clearly a DAO coin to be considered for investment in 2022.
As UNI token holders, you have access to the following resources:
- Uniswap DAO governance
- Community treasury of the DAO
- Uniswap default list
- The DAO's protocol fee switch
- ENS name Uniswap.eth
Maker introduces two unique cryptocurrencies as part of its pioneering strategy, DAI and MKR. The network also employs three primary mechanisms to stabilize DAI, even during harsh market downturns. The first protocol used to stabilize DAI is called the target price. This system calculates an ERC-20 token's value compared to the US dollar. The second protocol breaks the USD peg to dampen DAI's volatility during severe market conditions and Collateral Debt Protocol smart contracts that make Maker autonomous.
MKR is a decentralized ERC-20 token representing an investment into the Maker Project. The network has long been a pioneer in the market and was one of the first-ever tradeable tokens on the Ethereum network. Today, Maker is one of the most popular ETH-based platforms available. Notably, more than 2.1 million ETH are locked in Maker CDP contracts. Maker was also the first ever DAO.
Maker continues to see growing popularity mainly because it brings many benefits to the market, such as Community governance and the deflationary protocol that helps maintain its value over time. As part of this system, a small interest fee in MKR is due whenever a CDP smart contract closes. A portion of this fee gets burned. In this way, the system can maintain a healthy balance between the supply and demand of this digital asset.
You can use MKR to send value globally, like Bitcoin. MKR can be sent and received by any Ethereum account or smart contracts using the MKR transfer function. Unlike most cryptocurrencies, MKR is only created or destroyed in response to DAI price fluctuations, and no mining is employed. The system uses external market mechanisms and economic incentives to help DAI's value remain closely pegged to $1.
As of June 2022, the recent price action in Maker left the token's market capitalization at nearly USD 950,000,000.
Aave is a Decentralized Finance protocol that allows people to lend and borrow in over 20 different cryptos. Its native token is AAVE. The borrowers can pick either fixed or variable interest rates.
The protocol of Ave allows users to manage crypto ecosystems and build decentralized applications. The developers created AAVE tokens to execute this governance system. Tokens acted as the means to allocate voting rights to its users.
Apart from letting users earn passive income, Ave is a secure ecosystem with its foundations on the Ethereum blockchain. Further, it partners with big names in metaverse like Axie Infinity, Pixelcraft Studios, and Balancer.
With a large market capitalization, AAVE is one of the best DAO coins to invest in.
Curve DAO token, abbreviated as CRV, is the native token of the DAO Curve.fi, a decentralized exchange. The DAO is also an automated market maker protocol. This protocol enables easy swapping among ERC-20 tokens and includes stablecoins like DAI and USDC and Bitcoin tokens built on Ethereum like renBTC and WBTC.
You can lock your CRV token for a set period, with the upper limit being four years. As owners of the coin, you enjoy voting rights on governance and get rewards from protocol fees. The token is based on the Ethereum blockchain and is a top contender for investments.
ApeCoin is the cryptocurrency affiliated with the Bored Ape Yacht Club (BAYC) NFT collection. Built by the Yuga Labs, the creators of BAYC, this token hopes to bring more people into the metaverse through gaming, NFTs, and merchandise.
By buying an ApeCoin token, you enjoy the membership of the ApeCoin DAO. Plus, you get voting rights in the decision-making process of the DAO. The founders have major DAO projects for ApeCoin DAO, such as multiple services, merchandise, and events in the future.
ApeCoin is available to buy on prominent crypto exchanges. Today, it is among the most attractive DAO crypto tokens for investment. It amassed over $2.3 billion trade volume on Coinbase in March 2022 alone.
While many DAO tokens are available in the market today, these are five leading options to consider to optimize your crypto portfolio. Make sure to carefully research token performance and market trends before making your next investment.