Gaming DAOs and their Elemental Types
The concept of decentralized autonomous organizations (DAOs) was teased in 2021, however, its impact on web3 gaming was eclipsed by NFTs and the play-to-earn model. Going forward, it can be forecasted that DAOs will have a significant role in the way a gaming organization operates, pools resources, develops sustainable communities, and even in the development of new games.
Gaming DAOs work as gaming platforms build on open-source codes and are not associated with any gaming authority. Gaming DAOs focus on establishing a community-driven environment with a communitarian approach. They can redistribute the ownership of a game in a community of gamers, game developers, traders, and investors, of multiple gaming communities.
Gaming DAOs fuel the play-to-earn gaming model. With the P2E model, the complete gameplay experience has been revolutionized by compensating gamers for their time and efforts in the game. Contrary to the traditional gaming system, where prejudiced exchange of value to game controllers and/or developers prevailed, the play-to-earn gaming system intensifies the whole game economy through rewards allocated by gaming DAOs for the players, which they can fairly earn according to their gaming skills and achievements.
Let us look into some of the types of elemental gaming DAOs in the next section.
- Developers: The developer DAOs venture into various web3 game developments on a common platform and one of their primary objectives is to set the terms & conditions of further development in that game, which is monitored by the smart contracts further. These gaming DAO smart contracts explicitly imply the moderation of gaming content, in-game policies, community voting, and marketplace auctions, besides helping their DAO developers to manage the terms and conditions of the game autonomously.
- Gaming Guilds: The communitarian approach we mentioned before plays a major part in this type of DAO. There can be a casual bunch of players, game teams, and extremely coordinated multi-game clans that form such gaming guild DAOs, which would be financialized like an investment club. The members of gaming DAOs may also share the funds of their gaming guild to buy or amass in-game assets, then utilize these in-game assets (NFTs, game tokens, etc.) collectively and split the revenue afterward. Their impact on the Web3 market has been massive because they accumulate in-game assets and there is expanding support from new gamers, gaming NFT traders & speculators.
- Incubators and Accelerators: The third fundamental class of gaming DAOs is incubators and accelerators, which primarily focus on bestowing their expertise and knowledge to the platform architects for the growth of web3 gaming infrastructure. They play an essential part in improving web3 gaming by taking strategic actions to support game developers and gaming clans. Not only this, but they also supply advanced technical solutions, required tools & funding to develop and enhance the web3 games. The inclusion of incubators and accelerators in gaming DAO also assembles investors and stakeholders to improve the financials of web3 gaming.
You may consider DAOs to just influence the business of web3 games, but imagine how it would impact user behavior. The gaming community is negatively affected when they see their preferred IPs or gaming studios getting misgoverned. Here, a DAO of unanimous enthusiast gamers could direct their collective efforts to bring changes to the game. Imagine, if a DAO can raise enough funds to buy the Blockbuster IP, it’s not much to aspire if another one can purchase an IP of an underutilized game and transform it to reach the pinnacle of web3 charts. The only limit to gaming DAO’s prospects is the imagination.
Clearly, DAOs will impact how the gaming industry operates, and we will observe them being embraced by players and game organizations alike, in due course. We saw them rapidly being adopted by the gaming community, and while they may be unusual to many players today, we predict that they will continue to be incorporated into investments in digital assets, development of tech solutions, and synchronizing web3 communities, focusing on evolving the complete gaming ecosystem.