Different from the bull market cycle, in the bear market, it’s difficult for users to obtain high ROI from participating in DeFi and GameFi projects, and contributors also tend to operate assets at a lower frequency. On the other hand, the building of the new Web3 ecosystem continues and the demand for recruiting contributors by DAOs is growing stronger.
At present, most DAOs are still in their infancy or idea stage, yet, they need attention to recruit initial contributors to form an early community. For contributors, they hope to participate in DAOs with lighter contributions while receiving immediate rewards.
The early days of DAOs saw high concentration in the Ethereum ecosystem, such as ConstitutionDAO, AssangeDAO, and OlympusDAO. For a DAO, the value of users on Ethereum is exceptionally high. In this sense, if users can be captured from the Ethereum network, the community of said DAO will appear to be very solid and more valuable. However, as the market entered a bear market, the popular and prominent DAOs gradually declined, and the activity of contributors has resided rapidly. Conversely, the user activity of the BNB Chain continued to remain high, the attribution can be credited to BNB Chain’s low gas, preference for high frequency, and low value behavior. Although a large-scale DAO has not yet emerged, BNB Chain and Binance Labs are working hard to support the establishment of the ecosystem. In particular, the BNB MVB V Program held in the middle of the year attracted more than 600 projects to carry out ecological construction around the BNB Chain. Among the twenty-seven shortlisted projects, four were selected with the theme of DAO, including AnyDAO.io.
As a bridge between DAO and contributors, AnyDAO provides a set of DAO-as-a-Service to meet the user growth needs of Web3 organizations, while providing contributors with Contribute-to-Earn opportunities. In particular, the automated social account interaction system, integrated with Twitter/Telegram/Discord, can help DAOs recruit contributors quickly with low cost in the early stages. The SBT is used as asset creation and contribution incentive Allow List, which provides contributors strong bond to the DAO and in which they can continuously participate in the life cycle of DAO.
As mentioned above, BNB Chain users are more suitable for such high-frequency social contribution participation, perhaps because of the high degree of fit with user behavior preferences, AnyDAO has caught the eye of the Binance Labs and BNB Chain Team.
The differentiation of AnyDAO lies in the distribution of high-frequency instant rewards through smart contracts, which protects the rights of contributors and improves user stickiness and activity. Learn-to-earn platforms such as Galxe and RabbitHole already exist within the market to help projects publish tasks, guide users to participate in campaigns, implying users to get some kind of higher value incentives in the ‘future’, rather than immediately incentivizing the contribution. The stickiness of contributors to DAOs and platforms decreases when incentives mismatch with behavioral value.
As Web3 gradually becomes the key word that investment institutions pay attention to, more and more platforms and tools for serving Web3 organizations emerge. Although DAO and Web3 organizations have not been strictly defined or had an industry standard set, these platforms/tools have been developing products/protocols in accordance with their understanding of a DAO life cycle. Among them through are three categories of tools: 1) Providing a place for DAO to create and interact with users, 2) Providing DAO with some vertically professional tools, such as financial/compensation tools, task distribution/collaboration tools, communication tools, 3) Entry into higher barriers protocol-level on-chain governance systems like Aragon, Snapshot, and Genosis-Safe. These categories can be collectively referred to as DAO Tooling, with DAO creation and user interaction the most competitive.
One of the main reasons for the crowding in the space is the low technical threshold, in which DAO creation and user interaction is more about user experience and subsequent operations. What is missed is the importance in developing DAO creators and realizing the growth of contributors. However, precisely because there seems to be no threshold, the team needs to think about the positioning, differentiation and long-term strategy of the platform. Maybe a small functional difference can bring about qualitative changes.
AnyDAO is subsequently building similar products full of developers and operators, while utilizing various data points to assure the market that the Contribute-to-earn mechanism is the preferred proven design methodology, and that the social engagement incentive can help DAOs efficiently achieve contributor recruitment. Only in this way canbring prosperity to the creating and trading of DAO native assets in the subsequent life cycles.