The Emergence of DAOs in the Fashion World : Decentralized Autonomous Organization
What are they? What is their influence in fashion and what changes to expect?
Decentralized Autonomous Organization , primarily known as DAO , is a cryptocurrency that has been on the rise. The fashion world should be on the lookout for any possible changes it may bring. Up to this point, NFTs have ruled the conversation around cryptocurrency in fashion, but DAO specifically has been garnering attention because of the implications it poses for the industry.
What is Decentralized Autonomous Organization (DAO)?
In simple terms, it is a digital currency; a crypto token, which is recorded on the blockchain, meaning it measures an individual's stake in a specific group. These crypto tokens are used during participation, meaning that they assure voting rights, and essentially can be traded, meaning they have major upside potential.
What makes DAO distinctive?
DAO is decentralized, meaning that no central bank or a government institution has control over it. Instead, control is divided through networks, computers, and nodes. The creators of DAO have confidence in the fact that they can put an end to human error or manipulation of investor funds by placing decision-making power into the hands of an automated system and a crowdsourced process. This was all built by a group of people wanting to co-establish a community, who had anticipated an opportunity in digital fashion and fashion in general.
DAO has a lot of potential to rebuild the current hierarchy of the fashion industry, which still heavily relies and is built on gatekeepers (in this case fashion insiders who do not want certain products to become fashionable). These potential changes have received quite a reaction from insiders, with many predicting a bright future. DAO is a new form of corporate structure that use blockchain technology capabilities, such as immutability, transparency, and decentralization. The fashion world has been all talk regarding transparency, having said that DAO allows complete transparency from within. The fashion world as an industry is wary about the Crypto space, a move to digital currencies represents a major change for the sector.But, if the fashion industry continues to operate without evolving, it will not be able to keep up with the changes of Web3.
DAO's popularity came to light not only after its distinctive trait of being decentralized, but also after Dolce & Gabbana held its auction of fashion NFTs. DAO participated in the not entirely digital auction, which consisted of physical / digital packages and purely digital creations - which are now valued at around $ 5.7M according to the brand's twitter page.
Much is still unknown regarding DAO, as it is just coming into existence and just beginning to display signs of future potential. Having said that, the future looks bright.