A new form of fan token seems to be on the horizon, but this time going one step further. The Krause House, an organization within the cryptocurrency ecosystem, has set out to buy an NBA team and turn it into a decentralized autonomous organization (DAO).
Flex Chapman, pseudonym of the person leading this proposal for The Krause House, commented recently that The aim of the project is to give the community a “sense of belonging” to the teams.
The purpose of this project is to have a team in which the community can participate. “This is a way of leveling up, where people can participate in the league they have loved for decades,” said Chapman.
To carry out this objective, The House Krause, who acts as a DAO, will put up for sale tokens of the platform. The funds collected will be used, among various objectives as described by their whitepaper, in buying an NBA team.
With regard to tokens, in a ad published in the Discord of The House Krause, it is said that these will go on sale this November 19 under the modality of NFT.
Fan loyalty: the goal to pursue
Within a DAO or decentralized autonomous organization, all decessions are taken by the community. Tokens are generally used as a voting system. In some cases, DAOs work under the premise that whoever has more tokens with greater voting power will have, although other organizations propose that the voting value is the same for each participant.
For Chapman, the goal of this type of project is to bring the team closer to the fans. Fan tokens have been an interesting instrument for fan loyalty. Some soccer teams have launched this type of cryptoactive where the community has the possibility to vote, as was the case with the Argentina team, for the team’s slogan. According to a report by CriptoNoticias, 2022 can be a promising year for fan tokens.
However, while these tokens bring the fan base closer together, a DAO would be a totally different concept. Since the decisions of the community could affect the future and performance of the team, because, according to Chapman, This project will allow the community to vote for which players to hire and who not.
Would the NBA accept a “decentralized” team?
Whether or not the NBA will accept this type of deal remains to be seen. Although the highest professional basketball organization on the planet has already opened its doors to the world of cryptocurrencies, it has only been within the field of marketing with the launch of the game NFT: NBA Top Shot.
As quoted by the Whitepaper itself, “possibly not 10 years ago” on the question of whether the NBA would accept this type of deal. However, they cite the example of Dyal Capital, who bought a 5% stake in the team from the Phoenix Suns. This movement shows that the NBA has opened up to the sale of shares to institutional capitals, among which money from a DAO such as The Krause House could enter.