Collector DAOs

A “Collector DAO” is a decentralized autonomous organisation that focuses on acquiring and curating collectibles, for the most part, collections of NFTs. These DAOs often acquire high-to-very-high value NFTs that are beyond the reach of all but the very wealthy individual collectors.

These Collection DAOs allow many participants to join in the acquisition and shared ownership of rare digital art, to participate in decisions about the collection and to participate in earnings from the DAO’s investment and other income streams. To illustrate how Collector DAOs work, we’ll now look at two prominent and early examples – PleasrDAO and Constitution DAO

PleasrDAO

PleasrDAO is a decentralized autonomous organization (DAO) created to purchase and hold the iconic artwork “Everydays: The First 5000 Days” by the digital artist Beeple. The artwork is a non-fungible token (NFT) and was sold at a record-breaking price of $69 million in March 2021. The founders of PleasrDAO believed that owning the artwork would be a significant milestone for the cryptocurrency community and would help to increase mainstream adoption of blockchain technology.

“Everydays: The First 5000 Days” by the digital artist Beeple

The fundraising was done through an initial coin offering (ICO) on the Ethereum blockchain. The DAO issued a cryptocurrency token called PDAO, which could be purchased by anyone who wanted to become a member of the organization. The PDAO tokens were sold at a fixed price of 0.1 ETH per token, and the DAO raised a total of 3,500 ETH (approximately $5.5 million) from the ICO. After its fundraising PleasrDAO bid successfully for the Beeple artwork at the Christie’s auction house in New York with a bid of $69m. The purchase was completed on March 11, 2021, and the artwork was transferred to the PleasrDAO wallet.

The acquisition of the Beeple artwork by PleasrDAO caused a sensation in the art world and the cryptocurrency community. It was the first time that an NFT had sold for such a high price, and it brought mainstream attention to the potential of blockchain technology and NFTs. The purchase was also seen as a significant milestone for the decentralized finance movement, as it demonstrated the power of community-led initiatives and the potential for decentralized organizations to make major purchases and investments. PleasrDAO has since build a formidable collection of high-end digital art including the 1/1 Doge meme NFT and the 1/1 pressing of Wu-Tang Clan’s “Once Upon a Time in Shaolin”, and now casts itself as an ‘experimental art collective’, with the DAO as being like a museum but where pieces in the collection are funded and owned by patrons and shared to the PleasrDAO community.

Doge Meme NFT

Wu Tang Clan, Once Upon a Time in Shaolin

Constitution DAO

Constitution DAO was was launched in November 2021, with the sole objective of purchasing one of the rarest copies of the US Constitution, which was for sale by auction at Sotheby’s. The project quickly gained popularity in the crypto space and worldwide attention as a unique and innovative use case for DAOs. The Constitution DAO was able to raise more than $40 million in just three days through a crowdfunding campaign on the Ethereum blockchain. The funds were intended to be used Despite the significant amount raised, the Constitution DAO was ultimately unsuccessful in acquiring the document. The copy of the Constitution was sold to an unknown buyer for a record-breaking $43.2 million. Despite failure to achieve its mission, the Constitution DAO project demonstrated the ability of a community-driven initiative to raise a significant amount of funds in a short period of time, as well as the power of decentralized decision-making, as well as sparking many other DAOs to fund other important initiatives or causes.

Challenges and opportunities for Collector DAOs

One of the key challenges that Collector DAO faces is verifying the authenticity of the NFTs that it acquires. Because NFTs are digital assets, it can be difficult to determine whether they are authentic. To address this challenge, Collector DAOs relies on teams of experts skilled in digital forensics and can verify the authenticity of NFTs. Another challenge is the volatility of the digital asset market. The value of digital assets can fluctuate rapidly, which can make it difficult for collectors to determine the true value of their collections. In addition, the decentralized nature of the blockchain can make it difficult for collectors to verify the authenticity of digital assets, which can lead to disputes and legal issues.

A further challenge facing Collector DAOs is competition from other decentralized marketplaces and DAOs that are also focused on digital asset collection and trading. These organizations include Rarible, SuperRare, and Nifty Gateway, among others. Collector DAOs that facilitate trade, rather than just holding and owning, need to differentiate itself from these competitors by offering unique features and services, and by building a strong community of collectors.

Despite the challenges facing Collector DAOs, there is clear evidence that they can be spectacularly successful, so long as the organization has a strong foundation and a unique value proposition. The global digital asset market is expected to continue to grow rapidly, and there is a growing demand for unique and rare digital assets among collectors. Collector DAOs are now an established part of the Crypto landscape, providing secure and decentralized platforms for collectors to connect, trade, and share in highly valuable collections.