Kickstarter, a leading crowdfunding company, has announced that it is working on a new platform based on blockchain and to build DAO. The new platform will allow each user to use the Kickstarter infrastructure to set up their own DAO (Decentralized Autonomous Organization). The company notes in a release that the future of crowdfunding platforms is in decentralization. Kickstarter will use the Celo blockchain to carry out its transformation. Celo is a blockchain platform for smartphones that wants to bring payments to mobiles around the world. It has the participation of Deutsche Telekom and a16z, among others.
Kickstarter, Crowdfunding and DAOs
The first time crowdfunding platforms were threatened by blockchain technology was in 1917, following the overwhelming success of Initial Coin Offerings (ICOs). However, the large number of scams that occurred around it, caused interest in ICOs to gradually disappear. Now, the appearance of Decentralized Autonomous Organizations (DAOs) does seem to be the final blow for crowdfunding platforms. DAOs offer services similar to a crowdfunding platform, but in a much more automatic, decentralized and open way.
ConstitutionDAO: Example of How DAOs Will Transform Web Industries 3
What is a DAO?
A DAO is an organization controlled by smart contracts. Smart contracts are transparent and immutable and are responsible for establishing the rules of the organization. In this way, all members of the same know in advance the rules of the community. Everyone knows that these rules cannot be modified in the future, as they are registered in the Blockchain. Two clear examples of how DAOs can replace crowdfunding platforms are PleasrDAO and ConstitutionDAO.
The main objective of PleasrDAO is the collective purchase of NFTs that require a large investment. The group of people that make up PleasrDAO It jointly invests in high-value NFTs, sharing ownership of them through smart contracts. It has no central governance and issues are decided through voting systems, smarts contracts, Twitter conversations, and group chats.
What is PleasrDAO, the DAO that is revolutionizing the investment sector
ConstitutionDAO is a DAO that was organized to attempt to purchase an original manuscript of the United States Constitution. Despite not meeting its objective, this DAO managed to raise $ 46 million, highlighting the relevance that this type of organization may have in the future. A total of 17,437 users participated in the DAO.
Kickstarter is transformed into DAO
The idea of Kickstarter seems to be to build a platform that allows you to easily develop initiatives such as ConstitutionDAO. That is, crowdfunding initiatives that work in a decentralized way through cryptocurrencies and smart contracts. In this way, each person who invests in any of the projects would be the owner of a part of them, being able to verify their authorship through blockchain technology and smart contracts.
Deutsche Telekom to launch mobile payments network on Celo’s blockchain
Kickstarter plans to begin development of the platform during the first quarter of next year and expects to fully transition its site to the new protocol in 2022. With this initiative, Kickstarter, the world’s leading crowdfunding platform, underlines that DAOs are the future of crowdfunding or micro-investments.