KAITO is the core currency of Kaito AI’s InfoFi ecosystem, enabling transactions, governance, staking, and community engagement.

The S&P 500 fell 0.43% amid Walmart’s weak outlook, with investors eyeing PMI and home sales data next. Gold rose 0.23% to $2,939 on safe-haven demand but retreated from a $2,954 high. Traders await S&P Global Flash PMIs. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 0.02%, with Bitcoin and Ether rising by 2.46% and 0.69%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is BERA, which surged nearly 15.8% after The Graph integrated Berachain Mainnet on day one, enabling seamless onchain data access.

Berachain (BERA), founded in 2021, is a Layer 1 blockchain with Proof-of-Liquidity consensus, ensuring security and liquidity while maintaining full Ethereum compatibility. The Graph has 

 support for the newly launched Berachain mainnet from day one. Developers can now query Berachain data using Subgraph Studio, making it easier to organize and access onchain data. This integration enables the creation of fast and efficient frontends for Berachain-powered dapps.

Check Out the Latest Prices, Charts, and Data of 

 is the core currency of Kaito AI’s InfoFi ecosystem, enabling transactions, governance, staking, and community engagement. The total supply is allocated as follows: 56.67% to community and ecosystem initiatives (including ecosystem growth, creator incentives, and liquidity rewards), 25% to core contributors, 10% to the foundation, and 8.3% to early backers. Distribution is merit-based, using AI-driven assessments of engagement, governance participation, and long-term alignment with Kaito’s vision. Staking provides rewards and voting rights, ensuring active participation. A claim process for KAITO will be announced soon.

Yesterday, BTC Spot ETFs recorded a net outflow of $252.8M, including $33.5M from GBTC and $219.3M from non-GBTC funds.

. With $43 million in funding, this presents a valuable opportunity. To maximize your points, complete the "Generate at least one transaction on Sahara Testnet" task by sending a small amount of SAHARA via Metamask. This earns 20 points, a significant amount compared to other tasks. Ensure you take full advantage of this opportunity.

Beginner

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KAITO Powers the InfoFi Ecosystem with Governance Staking and Community Rewards

Kaito is an AI-powered information indexer specifically designed to deliver actionable insights for cryptocurrency traders and investors. Find out more now!

Within a year of its launch, Kaito has already established itself as a key player in the web3 industry. Its innovative approach combines artificial intelligence with publicly available crypto conversation data, creating a tool that can present an up-to-date picture of the events affecting the cryptocurrency space at any given time.

 is an AI-powered search engine specifically designed for the cryptocurrency space. It’s a premium service with a monthly subscription of $1,099. The platform indexes thousands of 

 sources that aren’t accessible through traditional search engines, and gathers data from Twitter, Discord, governance forums, research papers, news articles, podcasts and even conference transcripts. 

Kaito uses advanced AI algorithms and natural language processing to better understand context and gauge sentiment about topics. Its use of AI and an internal algorithm allows Kaito to filter out the noise, presenting a more accurate picture of community sentiment. 

. Before moving to web3, Hu worked in the traditional finance space for over eight years, including the management of a $500 million equities portfolio at Citadel. His aim with Kaito is to democratize web3 information by giving users access to tools and insights they need to navigate this ever-changing industry. 

Kaito has quickly attracted significant investment from major 

 in the industry. The project has already raised $10.8 million across two funding rounds.

The seed round in August 2023 was led by Dragonfly Capital, with participation from Sequoia Capital China, Jane Street and others, as Kaito secured $5.3 million. This was followed by a Series A round in June 2023, led by Superscrypt and Spartan, raising an additional $5.5 million with a valuation of $87.5 million. Other notable investors include Mirana Ventures, Folius Ventures and Alpha Lab Capital. 

Kaito offers a range of features designed to provide users with comprehensive and actionable insights. They include the following:

: Kaito’s platform uses a custom-built large language model (LLM) in combination with real-time data gathered from various sources to provide users with actionable insights on developments in the web3 space. 

:As a web3-native company, Kaito can analyze and understand the nuances of 

 and concepts. This gives it an edge when compared to Web 2.0 search engines that struggle to understand this space. 

: Kaito tracks market sentiment at various levels, including general market sentiment, sector-specific sentiment and sentiment toward specific tokens and projects, providing investors and traders with an important metric in assessing a project’s value.

Kaito uses a custom LLM to enhance its data processing capabilities. The platform aggregates data continuously from various sources, including social media, forums and news websites. This data is then processed using Kaito’s natural language processing capability to identify relevant information, extract key insights and analyze market sentiment. 

In addition, its platform uses a reputation system to give weightage to different posts based on the reputation of each poster. It also employs sophisticated algorithms to filter out spam and bots that often try to shape public opinion on social media platforms, especially on X. 

In December 2024, Kaito AI introduced two new elements to its ecosystem: 

 collection. Yaps is a scoring system that measures user contribution and engagement within the web3 community. Users earn 

 by creating valuable content, engaging with others in the crypto space and participating in discussions on 

. Kaito uses four main attributes in allotting these points:

The system also automatically filters out spam posts, making sure only real posters and useful posts can earn Yap points. While Kaito hasn’t officially confirmed a token airdrop associated with Yaps, the program allows participants to accumulate points that might play a role in future rewards, or initiatives within the Kaito AI ecosystem.

Participation in the Yaps program is completely free. Users just need to log in with their Crypto Twitter accounts and Kaito will start tracking their Yaps scores automatically. 

Genesis NFTis a limited-edition collection of 1,500 

 launched by Kaito AI. Priced at 0.1 ETH each, these NFTs have been minted in three phases:

As of Dec 26, 2024, NFTs in the collection are tradable on OpenSea, with a floor price of approximately 3.69 ETH. 

Kaito is a new and innovative service in the web3 space. Its use of AI to cut through the noise and fragmentation presents a great opportunity for the entire ecosystem. Kaito’s 

 suggests that it’s likely to roll out new features and/or services in the future. While the high subscription fee may be an obstacle for large-scale adoption, Kaito is still likely to become an important tool in the hands of institutions and 

 Perpetual Contract with up to 75x leverage now!

Intermediate

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Kaito: AI-Powered Web3 Information Platform

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, as well as futures, options and perpetual contracts.

With fewer macroeconomic releases in early 2025, the crypto market has experienced lower volatility and stagnant spot prices. This has led to decreased implied volatility in derivatives, a steepening term structure and stable open interest. 

However, ETH options still anticipate continued price volatility. Historically, such sideways movements have seen altcoins underperform, reflected in disappointing funding rates in the derivatives market.

Please check out the report’s highlights.

Without clear narratives or volatile spot price movements, open interest in perpetual swap contracts has remained flat over the past two weeks, with trade volumes also subdued in this low-volatility environment. Notably, SOL's perpetual positioning hasn’t significantly changed, even with its spot price 35% below its all-time high from late January.

On February 17, ETH’s spot price surged 6%, contrasting with the sideways movement of other crypto assets, but those gains were nearly reversed within 24 hours. This led to higher realized volatility in derivatives, and a flatter term structure as compared to BTC. Traders continue to assign a premium to short-dated ETH options, whose volatility has been higher than that of BTC for some time. Additionally, ETH option trade volumes have spiked, with calls reaching $0.25 billion on Feb 15, 2025.

Since reaching its all-time high in late January 2025, Solana's spot price has declined, leading to muted options markets with low activity in both calls and puts. Open interest is balanced between upside and downside, and is primarily focused on longer-dated positions, reflecting a lack of interest in short-term trades amidst disappointing spot market activity.

Advanced

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Feb 19, 2025): Crypto Remains Silent as ETH Sees Volatility

Across Protocol (ACX) enables seamless, low-cost cross-chain transfers with intent-based transactions, enhancing DeFi accessibility and security.

Transferring crypto assets from one blockchain network to another is still cumbersome, costly and inconvenient for many users, particularly those without a deep technical understanding of the technology. Numerous 

 solutions have emerged to facilitate the process, but the costs and complexity of crypto transfers are still an issue limiting the adoption of cross-chain 

Across Protocol (ACX) is a blockchain project that aims to tackle this problem by offering highly efficient, low-cost and secure cross-chain transactions based on intent technology. 

Intents — transaction requests with prespecified conditions — have seen rapid adoption in the blockchain industry. Across Protocol has focused its service offerings on using this promising technology. Begun in 2021 as a solution to facilitate token transfers between 

 networks linked to the blockchain, the protocol has evolved through two major version upgrades into a modular cross-chain solution that DApp operators can easily integrate into their platforms.

The protocol’s latest iteration, Across V3, features a modular settlement layer that 

 (DeFi) platforms can leverage to offer their users seamless, intent-based cross-chain swaps and asset transfers, all without leaving the user app’s native interface.

 (ACX) is an intent-based, modular web3 solution that offers cross-chain crypto transfers and swaps.

 Using the protocol, DApp operators can integrate Across into their own solutions to let their end users conduct intent-based cross-chain operations.

Across is not a newcomer to the blockchain scene — the project was launched in late 2021 and might be considered one of the first, if not the first, decentralized protocols specializing in intent-based cross-chain transactions. The original protocol, now known as Across V1, was primarily limited to enabling direct asset transfers between Ethereum and Layer 2 chains connected to the world's largest 

In June 2022, the protocol underwent its first significant upgrade with the introduction of Across V2. This upgrade improved the overall efficiency of the platform and introduced new functions. The major difference between V1 and V2 was that the latter could facilitate further intent-based transactions after the transfer of assets from the origin chain to the destination network. In contrast, Across V1 was limited to simple asset bridging between chains.

However, the protocol's most significant upgrade arrived in the form of Across V3, announced in February 2024, which introduced asset swap functionality and architectural modularity, allowing Across to act as a pluggable solution for various DeFi applications. Across V3 also simplified the calculation of fees for cross-chain operations. With Across V3, DApps of various kinds — primarily in the DeFi niche — can easily integrate intent-based cross-chain asset transfers, swaps and liquidity solutions into their own platforms. The protocol provides a set of APIs for developers for such integration.

The best part is that users of these DApps don't need to leave the platforms' native interfaces to execute the cross-chain operations. All of the activities supported by Across Protocol are carried out via the client's DApp interface. This is in stark contrast to the typical cross-chain experience for many web3 users, as they need to use multiple interfaces — e.g., one provided by an asset bridging solution and another at the destination app they use — to carry out their desired crypto operations.

Transactions executed by the protocol are based on user intents. Intents are conditional requests from users to perform some action, e.g., a token swap from ETH to USDT, if specific requirements are met, e.g., the swap rate is no lower than a certain value of ETH. In reality, many intents are executable transactions in the form of 

. Intent-based transactions have recently become popular in the crypto industry, due to benefits such as the limit on swap rates, a no-slippage fee model and other conditions that perfectly fit users' intended outcomes.

User intents are passed to Across's decentralized network or relayers, also known as solvers or fillers, which look for the best on-chain sources to satisfy the requests. Relayers compete with each other to offer the best solution to the user's stated outcome. The relayer that provides the best outcome earns the right to execute the transaction. This competitive relayer landscape allows end users to access the best possible rates for their cross-chain transfers and swaps.

Across Protocol locks user funds allocated for a transaction in an escrow pool instead of immediately transferring them to the winning relayer's custody, providing enhanced security to users. Relayers are responsible for providing the necessary funds to carry out the transaction on their own without having access to the user funds in escrow. When a relayer successfully executes an intent, they’re repaid from the liquidity pool holding the escrowed assets. To optimize 

, repayments to relayers are bundled and transferred in batches.

At the architectural level, Across is a modular system with three main layers — intent, relayer and settlement.

The intent layer is the component that handles user intents and their deposits at the origin chain. Then, the relayer hosts the network of relayer nodes and handles functions related to their activity — provision of capital to execute user intents, competitive bidding and the execution of intents.

The settlement layer is where the finalization of the transaction flow occurs, with relayers repaid in bundles and transactions settled on the destination chain. Verification of transactions uses an optimistic oracle that’s provided by the 

, a protocol specializing in blockchain oracle services.

Across Bridge is a cross-chain token bridge designed for efficient, low-cost and secure asset transfers. It provides an easy-to-use interface for users to move tokens seamlessly between different decentralized networks. To start using the bridge, you’ll need to connect a supported wallet. As of early February 2025, the bridge supports four popular wallet types — 

, Coinbase Wallet, Phantom and the group of wallets compatible with the WalletConnect framework. Currently supported networks for transfers include the Ethereum mainnet, 

 (POL) and zkSync Era. Transfers from the origin chain to the destination chain typically take only a few seconds to confirm.

Across+ is a bridge abstraction solution that utilizes cross-chain hooks to bundle multiple actions into one user transaction. In plain terms, it simply means that you can bridge assets to a protocol or DApp on the destination chain and carry out further actions (such as contributing liquidity) with a single transaction. For end users, this helps abstract the fact that the assets used for a crypto operation have been initially moved in from a different network. The cross-chain hooks let end-users carry out these transactions with a single instruction/signature, although under the hood, multiple actions are performed at the smart contract level.

Across+ boasts an extensive cross-chain reach. It currently supports 17 networks, including Ethereum and a wide range of Ethereum-linked Layer 2 chains.

Earlier, we noted that Across Protocol moved to a modular design with the launch of its V3 in early 2024. This shift to modularity has created opportunities for DApps and external protocols to use the platform’s settlement layer as a pluggable standalone product to provide efficient settlement for intent-based cross-chain transactions. Using Across Settlement, DApps can extend their functionality into intent-based liquidity operations, swaps and transfers. Across Settlement supports the same 17 decentralized networks that can be utilized with Across+.

In November 2022, Across Protocol launched its native token, ACX. The token is primarily used for 

, and holders can vote on various proposals related to the protocol's rules, future direction, treasury spending and native token emission. ACX holders exercise their governance function through membership in the Across DAO.

Holders of the token represent one component of the protocol’s governance model. The other two key parties involved are the Across Council and Committees, made up of specific subject matter experts. While all ACX token holders are entitled to vote on proposals, only those who hold at least 50,000 ACX (around $16,000) can submit proposals considered for voting.

ACX is a supply-capped asset, with a total and maximum supply of 1 billion. The token’s allocation shares are as follows:

 as a Perpetual contract with USDT. Under the terms of the contract, you can trade ACX with up to 50x leverage. The contract is available to traders in Bybit’s derivatives products, such as 

As of Feb 20, 2025, the ACX token is trading at $0.3257, which is 80.7% lower than its ATH of $1.69 on Dec 6, 2024, and 846.3% higher than its ATL of $0.03441 on Jun 1, 2023.

Long-term price forecasts for ACX are mostly bullish.DigitalCoinPrice 

 an average rate of $1.17 in 2027 and $1.78 in 2030, whileCoinCodex 

 the token to trade at around $0.34 in 2027 and rise to $1.12 in 2030.

The inefficient and often costly process of moving assets from one chain to another continues to hamper the adoption of DApps among crypto users. By enabling cross-chain intent-based functionality, Across Protocol seeks to provide DApps and their end users with a truly single-chain experience, where crypto operations across different networks can be handled from the same user interface.

Moreover, some of the protocol's key features — intent-based transaction execution, the competitive nature of the relayers' work and the batching of relayer repayments — contribute to lowering the costs of transfers and other crypto operations. Furthermore, the escrow system that the protocol employs protects users from malicious relayers, contributing to a stronger security profile for its platform. 

Minimal costs and tight security while carrying out your cross-chain crypto operations from a single DApp interface — these features aren't easy to come by all in one solution! 

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Across (ACX): An Intents-Driven Solution for Cross-Chain Transfers

Bybit Learn

DeFi

A DAO is a blockchain-governed autonomous organization owned by its community members. Find out how it works and how to create a DAO in this article.

A decentralized autonomous organization, or 

, is a unique way to connect people using 

. Its structure is quickly becoming popular among users who have common goals and a desire to collaborate. DAOs are innovative because they give every member an equal voice.

New DAOs are emerging every day. Whether you want to grow your investments using 

 or donate funds to a charity, a DAO could be the answer. This guide demystifies DAOs, how they use blockchain technology, and what their advantages are over traditionally structured organizations.

A DAO is a blockchain-governed autonomous organization owned by its community members. It does not have a governing CEO or board of directors. The collective utilizes 

 to lay foundational rules, and is designed to give members equal votes on changes or modifications.

At any given time, members can create proposals to improve the DAO’s protocol, after which all community members have the opportunity to vote on them. Proposals with a predetermined percentage of votes in their favor will be accepted and implemented, based on the rules within the smart contract.

Community members are incentivized to approve proposals that benefit the protocol. As long as a protocol is healthy and sustainable, like-minded people will want to join the community. This, in turn, increases the demand for the DAO’s tokens, which elevates the value of the members’ tokens. As such, it’s in every member’s best interest to ensure that the protocol succeeds so they, too, can be successful.

The purpose of a DAO is to connect people with similar goals into a group that doesn’t want a leader. Operations are managed by the community and follow blockchain-based rules. Decisions made within the DAO are rendered through proposals and voting, making all activities transparent for the members to see.

 and tokens. Growing blockchain technology has enabled users to create DAOs with a wide range of goals. Here are a few examples of DAOs and their uses.

A protocol DAO governs a decentralized protocol — such as exchanges, lending and other applications — using smart contracts. This type of DAO can also be referred to as an 

, formed in 2015 and launched in 2017 onto the 

 network. Since then, protocol DAOs have become the most common type of DAO, with thousands of different applications.

, or DEXs. Each DEX enables traders to exchange different tokens with user-funded 

. Typically, a DEX will offer users rewards for staking the DEX’s native token. Some examples include 

Philanthropy DAOs focus on promoting social responsibility initiatives and other charitable causes. They employ several different models to collect and distribute funds, using cryptocurrency.

Their goal is to create a meaningful impact through sustainable, globally accessible fundraising methods. One example is 

, which raises donations for Ukrainian soldiers. Another is 

, which benefits multiple social impact organizations elected by POP holders.

Investment DAOs concentrate on investing funds as a group. As with other types of DAOs, each decision is made by those who own the investment DAO’s governance token. The objective is to generate revenue for the group in the form of cryptocurrency, NFTs or other decentralized assets.

One of the biggest benefits of an investment DAO is the collective decision-making process. In most traditional investment organizations, a small group of professionals, or one individual, is making each key decision. However, in an investment DAO, anyone holding the governance token can make a proposal, and everyone benefits when the investment pays off.

NFTs and digital collectibles are growing in popularity. Collector DAOs gather funds to purchase and own these digital assets. For investors, a collector DAO is a good way to own a piece of an expensive NFT, or other collectible, at a reduced financial risk.

Not all collector DAOs are formed for investment purposes. Some help make key decisions about a collection of NFTs or digital assets. These DAOs may have only a few dozen participants who use the technology to grow the community or spread awareness. As in an investment DAO, once the assets of a collector DAO become profitable, funds or other rewards are distributed to its participating members.

A grant DAO is similar to an investment DAO, except any collected funding goes to supporting new projects. Typically, these DAOs are philanthropic in nature and part of a larger community-driven program. An example of a grant DAO is 

, a community focused on building and funding 

Each decentralized autonomous organization is a little different. In general, you need to own the DAO’s governance token to participate in the decision-making process or receive rewards. The exact rules of the DAO are defined using smart contracts on the Ethereum blockchain.

Some DAOs have prerequisites for joining, but most require only a secure 

, which lets you purchase the DAO’s governance token and receive rewards. Additional community requirements may include filling out an application, joining a 

Remember that DAOs have no centralized leadership. All decisions are made by voting on member-submitted proposals. Even small decisions affecting the DAO are made this way, including how to promote the organization, distribute funds, operate new protocols and what to invest in.

The method for submitting a new proposal also varies from DAO to DAO. Large communities tend to require members to stake tokens, or pay a fee, to submit a proposal. This system encourages members to submit only serious proposals, and it increases voter participation.

After the proposal is voted on, a smart contract is automatically executed. Because of the DAO’s transparency and security, modifying a contract after it has been executed is very difficult.

Users may want to create a new DAO for several reasons. Typically, each DAO token holder has a voting power equal to the number of tokens they hold, which means that a person holding 50 tokens would have 50 times the voting power of someone holding just one token in the voting process. It is believed that someone who is more monetarily invested in a DAO would have a stronger motivation to ensure that the DAO succeeds. As such, this practice acts as a safeguard to ensure that users who are not as monetarily invested are not able to act in bad faith and cause the DAO’s fall. 

DAOs are needed because they enable participants to pool funds and support initiatives without having to rely on third parties. Instead, after a proposal is voted on, participants trust codes to automatically execute a smart contract. This makes each transaction verifiable on the blockchain by any member, whereas a traditional organization may not be as transparent.

While each DAO is built a little differently, they have the same core advantages. The decentralized and autonomous structure allows for smooth operations and easy collaboration. Here are some additional advantages DAOs have over traditionally structured organizations.

A DAO’s structure is mostly automated, giving it a huge advantage over traditional organizations. To smoothly run daily operations, a large staff isn’t necessary. Smart contracts handle every activity, so work doesn’t have to be prioritized, and tasks aren’t overlooked. The autonomous structure also allows each participant to remain independent; they can participate in the DAO as much as they like, with little to no impact on the DAO’s daily business.

Another benefit of using a DAO is the reduced need for human interaction thanks to the presence of smart contracts. While DAOs tend to have strong communities, they don’t have leaders. This gives rise to a neutral environment without any power plays from authority figures, which reduces conflict within the organization and ensures the organization functions as intended at all times.

Because of the DAO’s structure, each member is responsible for their own actions. DAO members also tend to have the community’s best interests in mind when creating proposals or voting on them. Every transaction on the blockchain is also clearly documented. In addition to having an invested interest in the organization’s future, most investors want the DAO to remain credible. This increases the likelihood of members conducting research before creating, or voting on, a proposal.

DAOs are very community driven. They can attract a large number of members, each with their own thoughts and opinions. While participation isn’t typically mandatory for token holders, it’s highly encouraged. The more investors contribute to a project, the easier it is for the project to grow. Every member has the opportunity to express their opinion and share ideas.

Before you create a new DAO, explore some of their potential disadvantages.

One of the biggest advantages of using blockchain technology is speed. Although DAOs use this technology, the community-driven aspects of the organization can impede progress. Because all changes to the DAO need to be voted on, impacts to the code can be time-consuming. This is incredibly problematic for emergency decision-making, such as responding to a security breach.

In a world where blockchain technology is growing at an alarming rate, security has become more important than ever. While smart contracts are generally thought of as tamperproof, new technology or hacking methods could create vulnerabilities in a DAO.

To vote on a proposal, you need to own the DAO’s tokens. Each token represents one vote; however, there are several DAOs that offer more voting power based on the number of tokens one has. This means the more invested you are in the DAO, the more voting power you have. Investors who have accumulated large amounts of DAO tokens may have enough to always have the majority vote. While some DAOs have rules against this, others may not see the issue until several impractical proposals have been passed. 

All rules and regulations for a DAO are enforced by smart contracts without the need for a single leader. This can make it difficult to change existing rules, especially if these rules were not clearly defined early on. Rather than a single person being responsible for the outcome of a vote, the group is responsible for the decisions it makes. This can cause issues with the overall management of a DAO, and may be problematic if a DAO gets involved in a legal battle.

Here are some of the most impactful examples of DAO projects.

 was the first of its kind. The independent enterprise ran on the Ethereum blockchain and enabled users to easily pitch ideas for projects. While the project raised millions of dollars, 

, and funds were stolen. Recovering the funds resulted in a hard fork in the blockchain. This led to the creation of 

Launched in 2017, MakerDAO controls DAI, a decentralized 

 pegged to the U.S. dollar. MakerDAO allows users to deposit DAI and earn interest. Users can also create collateral loans. While MakerDAO is known for DAI, its governance token is MKR. To participate in the governance of MakerDAO, you need to use the 

 (BAYC) is a popular NFT project. The collection consists of 10,000 NFT ape 

s, some valued as high as $24.4 million. These prices have made BAYC among the most successful NFT projects. The project also has an active 

, known as ApeCoin DAO, which is composed of members who hold Bored Ape or 

 NFTs. While ApeCoin DAO focuses on selling and monetizing the NFTs, holders can get additional rewards and drops. Because a limited number of Bored Ape and Mutant Ape NFTs are available, the ApeCoin DAO has a maximum of 30,000 members.

 is a DEX that allows users to trade and stake tokens. While users can interact with hundreds of 

 apps on Uniswap, the protocol is owned and governed by UNI token holders using an on-chain voting system. Anyone holding at least 0.25% of the total supply of UNI can submit a new proposal. Users can also participate in an active community forum.

 quickly became a popular investment DAO. It’s known for offering rewards to its members, but Yearn Finance also has several different financial projects aimed at helping users grow their investments. For example, vaults are unique staking pools that operate automatically, and enable users to share gas costs. Yearn Finance’s governance tokens are known as YFI, and each token is worth one vote.

This successful collector DAO is focused on investing in NFT art and other blockchain-based assets. Since its public launch in 2020, 

 has amassed several high-value NFTs from well-known digital artists. Flamingo DAO hopes to unite collectors within the NFT community and encourage new investment strategies.

 is an investment DAO that uses a decentralized lending protocol built on the Ethereum blockchain. It aims to match lenders to qualified borrowers, and allows lenders to earn rewards for using liquidity pools. The DAO’s governance token is AAVE, which is also used as collateral for borrowers.

 is a for-profit investment DAO focused on funding projects that provide high financial returns to its members. Since its release, the DAO has gained a reputation for investing in new 

 early. Some of the projects it supports are focused on the advanced usability of web3. DAO membership must be requested and approved before new users can join.

 is one of the first philanthropic DAOs to focus on the social responsibility of web3. Every aspect of Big Green is controlled by grantees and donors, helping nonprofit organizations become more involved in grant-making. Big Green has been active since 2011, and focuses on teaching people how to grow food.

 uses blockchain and cryptocurrency technology to coordinate several different fundraising activities. Their goal is to promote charitable causes using decentralized technology, and help empower community members to solve problems. What sets this platform apart is its simplicity; it’s designed so users with limited technical knowledge can donate. One of their active fundraisers benefits orphans in Vietnam.

DAOs are an excellent choice for many decentralized projects. Creating one is fairly simple and cost-effective. Most users can set up a new DAO and promote it immediately.

First, you need to define your DAO’s goal, and consider all the available options. DAOs have a unique organizational structure on the Ethereum blockchain, and are completely decentralized. You may be working with anonymous individuals on your project. Therefore, it’s imperative you do extensive research in order to avoid liabilities.

One challenge you may face during setup is the legality of your DAO. When establishing a company, investment firm or charitable organization, you’re required to follow local and federal regulations. In setting up a decentralized organization, you don’t necessarily need to follow regulations, but that doesn’t mean you aren’t liable if your DAO does something illegal or becomes involved in a legal dispute.

A DAO needs several key features to be successful. The most important is a strong purpose that people want to support. You must have a solid, clearly defined reason for your DAO to exist. Not only will this help you connect with like-minded people, it will also help your project continue to grow and reach more investors.

Every DAO has a voting mechanism of some kind. While there are several third-party companies that can develop a system for your DAO, some of the most successful DAO projects have built their own systems from scratch. You’ll also need to create a governance token or share system so individuals can vote on proposals.

Fund management is also a necessity. As an automated organization, you won’t have a treasurer responsible for collecting or distributing funds. Instead, all transactions will be completed using smart contracts. You’ll also need to securely store any funds. Most DAOs choose a multi-signature wallet with very limited access.

You can create a new DAO within a short period of time, as long as you have the right tools.

: Set up a secure crypto wallet and add funds to it.

: Allow a third-party development service to create the voting system and structure for your DAO. Some popular services include 

: Configure your organization and establish the rules it must follow to function automatically. For example, what percentage of a vote is needed, or how many voters need to approve a proposal before it’s passed?

Create the native token that will govern your DAO. If your DAO already has members, distribute the token accordingly.

: Test-drive your DAO by creating a simple proposal question.

Choose a way to effectively communicate with DAO members, such as via a Discord server, social media account or website.

Unless you already have a large established following, you’ll need to find innovative ways to attract new people to your DAO. While a DAO can operate with a small membership, if you want to see long-term success, you’ll need to steadily grow your community.

Creating and participating in decentralized autonomous organizations has its advantages. As blockchain and smart contract technology continue to grow, DAOs will also evolve. Several highly successful DAO projects already exist, and more are being created every day.

What Is a DAO: Promoting Governance With No Central Authority

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