Today we have an awesome guest post from the team at Jenny DAO. Jenny DAO is a galaxy brain play because it basically created a power user, from day one, for the new NFT fractionation protocol, Unicly. This is the first time I remember a team creating a power user for their protocol and I think it’s an incredible way to bootstrap usage (although Unicly did not need it because there was already significant activity on the protocol, still a great move). I expect to see more DAOs as power users going forward, a separate post on that soon.
Before jumping into the guest post, quick comments on the market. The past few days have been bloody but this morning (from a US timezone perspective) we saw an extremely large amount of sell pressure and Coinbase printed BTC @ $30,000 and ETH @ $1,860.
Those are some brutal numbers considering a few days ago we were trading at $60k BTC. Luckily, in my experience (and this is not financial advice and I am not a trader!), these intense wicks down tend to signal the stoppage of panic selling. That doesn’t mean I expect this to be a March 2020 scenario where we just blast upwards from here but it signals that the frantic panic selling will slow down or stop altogether. During these times of extreme volatility, it’s best to take a break from watching the price action and learn about all the incredible things people are building for this ecosystem, one of them being Jenny DAO! 😎 Let’s dive in.
Decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs) aren’t the most obvious bedfellows. The former is an open-source framework governed by a set of specific rules. The latter is a digital asset that represents, well, anything: a piece of art, a music video, a digital collectible.
Though rarely mentioned in the same breath, DAOs and NFTs actually have several similarities. Both are community-driven, with an emphasis on decentralized governance. Each operates according to its programming rather than the whims of a single person or platform. And both are frequently cited as promising technologies irrespective of the role they play in the cryptoverse.
How Jenny DAO Is Democratizing NFTs
Jenny DAO is one of the first projects to bring DAOs and NFTs into the same orbit. A so-called Metaverse DAO, the recently-launched project is concerned with the purchase and sale of NFTs, which can be locked into vaults controlled by Unicly Protocol’s smart contract and sold to the highest bidder.
Unicly, to the uninitiated, is a decentralized NFT fractionalization platform popular with investors, artists, yield farmers, and defi traders. On Unicly Protocol, users bid for NFTs locked within its vaults and can even stake tokens to unlock coveted NFTs.
So, how does Jenny DAO work? Well, the first thing to note is that community members have the power. The power to decide which NFTs to purchase and when, and to manage these assets through ownership of the native Jenny token. Providing enough Jenny token holders want to “release” an NFT, the DAO can instruct the smart contract unlock the vault, whereupon it will be held in a multisig wallet controlled by key members.
With Jenny tokens representative of a member’s NFT ownership level, token-holders can also freely “cash out” at their leisure via an automated market maker (AMM). To this end, NFTs will enjoy better liquidity and more users will have an opportunity to access the thriving NFT market.
Of course, community members have further responsibilities. These include estimating the value of NFTs, settling discrepancies between the value of Jenny tokens and that of NFTs, participating in NFT auctions, and assessing the worthiness of incoming bids for NFTs in the collection. It’s a tough job, but the upside makes it worthwhile.
Declaring War on the Whales
In a world where the best NFTs are only accessible to those that can purchase them, Jenny DAO is providing exposure to some of the most unique and expensive NFTs through shared ownership. By controlling such assets via a DAO, the platform is democratizing the NFT space and preventing it from becoming yet another indulgent pastime for whales making outlandish bets.
Jenny DAO has already started acquiring high-end NFTs, including a collaboration between Grammy-nominated DJ Steve Aoki and 3LAU, with visuals by Peiter Hergert. Ordinarily, such a collectible would be purchased by a whale and that would be the end of it. Instead, it has been commissioned by a decentralized autonomous organization and will belong to the community.
Over time, the platform’s NFT collection will expand and with it, the influence of the DAO (not to mention the value of Jenny tokens) will grow in tandem. At Sfermion Capital, we’re just lucky we got the opportunity to invest.
Few people doubt the transformative potential of NFTs, and even the art world’s old guard (Christie’s, Sotheby’s) have acknowledged their value by hosting high-profile auctions in recent months. Movie studios are also getting involved, licensing digital collectibles from iconic films like The Godfather and even tokenizing Oscar-nominated documentaries, while musicians release songs and albums as tradeable tokens. The market’s future isn’t bright, it’s red-hot.
And that’s why we’re backing Jenny DAO. Community-governed, highly transparent, and with a radical desire to improve accessibility in a fast-moving sector, the platform is poised to capture value while elevating the entire industry.
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