How It Works

Alchemy lets users take any NFTs that meet the ERC721 standard (almost all) and create a Decentralized Autonomous Organization which owns the underlying NFT(s).

The DAO is controlled by the DAO’s governance tokens, able to be freely traded and transferred, creating liquid markets for ownership. All tokens are worth 1 vote each, and so owning a token gives you both governance rights letting you vote on what to do with the NFTs and claim rights for NFT sales.

Core features

Buyouts

NFTs can be purchased from the DAO directly by simply transferring the ETH buyout for that NFT to the contract, purchasing the NFT from the DAO. The price for each and every NFT can be set to any value by the NFT DAO allowing for targeted prices while keeping the governance token value as the collective value for all NFTs.

The DAO can also set a buyout price for the whole DAO to be purchased. Allowing for speculators to purchase and hold ownership in collections then profit by selling the collection for more later.

Burning

At any time the governance tokens for the NFT DAO can be burned for a proportional amount from the NFT DAOs Ether balance. This allows holders to redeem their profits after a DAO buyout or to exit assuming some NFTs have sold, but there's no liquid market for the tokens.

Fund Raise and Fund Management

The DAO can issue new tokens for itself to be able to fundraise to purchase more NFTs. By setting a value for the raise and amount to sell, the DAO can mint governance tokens to be purchased by others in exchange for ETH which can then be used to purchase further NFTs to generate more value.

By allowing for the DAO to dilute the stake in exchange for raising funds to the Treasury, more users can join without holders needing to sell, funds can be used to purchase NFTs, fund costs for like marketing or managing the DAOs, and create a whole Decentralized Autonomous Organizations around the held NFTs owned and managed by the community. DAOs can take the form of their own funds, collectives, or even common good pools, owning say Ethereum.eth and letting the DAO allow projects to register subdomains, generate their own fees from leasing domains to donate, and prevent squatting.

Governance

The holders are able to create proposals to set buyout prices, fundraise, buy NFTs, sell NFTs, transfer/loan NFTs or do any other action that can be done on-chain. Proposals are voted on by holders and allow for Decentralized Community Ownership and control.