The future of DAOs: entrepreneurial Web3 entities

1. Overcoming the classics DAOs bottlenecks

DAOs (Decentralized Autonomous Organizations) are essentially organizations governed by the allocation of votes through cryptocurrencies. The biggest DAOs are built and maintained to make decisions on the roadmap and upgrades of cryptocurrency protocols¹. For brands, DAOs are set up to distribute NFTs and rewards in digital tokens. Brands are also launching DAOs to collect and invest in creative work such as art, but also fashion, such as the last Web3 Yves-Saint-Laurent Beauté² campaign. In both cases, there’s a minimum buy-in (often in cryptocurrency), members receive special DAO tokens, distributing votes and decisions.

With the Federage model, we offer a different approach: you don’t have to buy in with fiat currency to get into a Web3 entity. You just propose and take action for the community that is connected to a company or a brand. Of course, each action is measured and rewarded in the form of a euro-token or dollar-token. From a user value perspective, whether that user is a consumer (brands), subscriber (media), member (communities), or fan (icons and creators), they begin to pool their capital together and work from a shared account.

Instead of a company selling one item to one customer, this strategy is about multiple customers sharing ownership of something (by owning assets). As the technology evolves and experimentation continues, all marketers should understand how distributed ownership works, since it has the potential to change the way customer communities are managed — and how product value is created and shared. Surely, Web3 entities magnifies what creators and entrepreneurs can do together.

2. The community-led entity based on real-world assets

The new narrative revolves around the tokenization of real-world assets (RWA), transforming tangible assets by integrating them with the blockchain. Gold, real estate, and carbon credits can be tokenized into tradable digital formats. Federage introduces a novel asset class, enabling everyone to monetize their services and their work. Each user, whether a freelancer, creator or entrepreneur, has the opportunity to mint a real-world assets that encapsulates the value of their work. This will empower individuals to not only contribute, but also hold a stake in the collective value they help create.

In this context, ownership extends beyond traditional boundaries. The idea then is to start as an online community, with a shared set of interests or beliefs, a meticulously designed goal, and a path to grow economically. It represents the perfect equilibrium between collective growth and monitoring individual ownership. Picture it as a community platform evolving into a startup incubator and eventually serving as a meeting ground for investors. For instance, RWAs owners collectively decide on the purchases and investments the network engages in, with all actions meticulously recorded in a transparent manner.

On the business side, the use of real-world assets enables access to new forms of financing. By tokenizing their assets, companies can mobilize capital without resorting to traditional, often lengthy and costly financing methods. This can be particularly advantageous for startups and SMEs seeking alternatives to bank loans or traditional fundraising. Individuals can use their RWAs as collateral to fund anything they want on a credit-risk protocol. To put it simply: you have an idea? A project? Secure it in a tangible asset, produce its value collectively, get funded and start generating income.

3. Democratizing community ownership

Through Federage, we strive to democratize the creation of real-world assets, empowering anyone to secure the assets they generate for and within a community. The key principle is that owning an asset means being its owner; an asset isn't merely a circulating token but an active role within the community. For instance, if you manage the database of a digital product development community, the ongoing work, actions, and updates requiring your involvement contribute to the appreciation of your asset's value. To simplify, your personal investment over time will gradually increase your stake in the community.

Federage introduces an innovative approach, empowering you to assign value to your work, generate tangible assets, and actively engage in a flourishing decentralized economy. Everyone has the chance to become a co-owner in this collaborative financial community, with the opportunity to tokenize any development within the community, fostering a unique connection. Each participant plays a crucial role in shaping the narrative of value creation and becomes an integral part of a larger value chain. Real-time monitoring of project progress is essential, alongside the shared utilization of resources and the collective recognition of our accomplishments.

For brands and companies looking to initiate a financial vehicle distinct from their incorporated company, leveraging the advantages of distributed ownership becomes paramount. Brands can tap into the benefits, ensuring returns on production and property rights. At the same time, consumers gain tangible rewards and partial ownership. As market activity intensifies, the value of the token or product experiences an increase, attracting more participants who, in turn, stimulate additional activity. This sets off a positive cycle. This is the new era of real-world assets facilitated by Federage.