From MakerDAO and NBA Top Shots to Fractionalizing NFTs
Farmland and Rural Opportunities
2021 was all about NFTs, 2022 will be all about DAOs (Decentralized Autonomous Organization).
What are DAOs?
- DAOs are organizations governed by a set of computer-encoded rules and controlled by the organization members
- Basically, it means that an asset will be tokenized so that everyone has the opportunity to own a fraction of it or fractional ownership
Why does it matter? 🤔
- Most of us can't afford to buy fine art, crypto punks, an entire commercial building or an island
- No problem. Buy shares instead
- Real estate: Startup Kocomo now allows you to own a vacation home abroad by using fractional ownership. You will own a vacation home with 7 other families with the added benefits of being able to rent out your weeks
- Transportation: NetJets has been using this concept since the 60s but today's technology makes the model more transparent and accessible
- Think supercars, yachts or heavy industrial vehicles like cranes, forklifts and backhoes
- Collectables and NFTs: Companies like Fractional.art and Otis are enabling everyday people to buy shares in NFTs and collectables like baseball cards and sneakers
- Art owners could even earn income from their shares when people rent out their digital art
- The biggest risk I see is liquidity. How will you get paid back? Is there a secondary market for your shares?
- To be honest, I'm not a big fan of DAOs. I don't buy the whole governance narrative. The idea of DAOs is that you're taking the worst part of democracy and combining it with technology where 51% of the people need to vote for a single outcome. I mean we couldn't even get people to show up and vote responsibly in a political election and most who do are not equipped of doing so
- However, fractional ownership is an interesting one for me. The concept has been around for a long time except right now we have the technology to make it more accessible and transparent