There are a lot of buzzwords thrown around in the NFT space….including this almost sickening overused term “space” 🙂
Anyhow most of these NFT projects are supposed to be of a community nature as opposed to a heavily profiit seeking nature.
This can be argued and it seems that more moves towards profit seeking is underway in 2022.
When putting together a project usually you have a handful of points that are written up in a document to promote the NFT or some project.
- Tokenomics ERC20
- fractionalization of an NFT
Now DAO is short for decentralized autonomous organization and the whole point of the NFT DAO is that a community is supposed to rally behind a project and help it be successful.
So instead of one company or organization making decisions on how to raise and spend the money, the commmunity is supposed to be able to vote on how to spend money.
Then based on the vote the money is automaticallly spent in various areas using whats called a smart contract.
The project will say that they have utility which means that the project is adding more to its value than just sitting there like a piece of art.
Some pieces of art are okay and are supposed to just sit there and look good but other types of NFT art are said to have more value than to just look good.
(under construction Jan 2022)