If you're in the Web3 space, you’ve already heard that 2022 ‘is the year of DAOs.’ Each month new and exciting DAOs continue to pop up and show the versatility of DAOs in running any type of organization. Let’s take a look at some of the exciting DAOs emerging to reinvent ownership in sports communities.
LinksDAO sprang up earlier this year in January with the goal of democratizing golf course membership. The team minted a collection of 9,090 NFTs that provides owners with a two tiered “leisure” or “global” membership in the DAO. Within just 48 hours of minting, LinksDAO had raised $10.4 million in sales to cover start up and operations costs for the project. The organization is currently on track to purchase one of the golf courses that are now under consideration by members in their Discord.
Just a few months later in March, ‘BuyTheBroncos DAO’ gained popularity and traction as it launched its campaign to raise $4 billion to buy the Denver Broncos. BuyTheBroncos is led by Sean O'Brien, a former lawyer and crypto enthusiast. While BuyTheBroncos is a strong contender for buying the famous football team, it is facing an uphill battle with the NFL.
According to NFL bylaws, group ownership of a team cannot consist of more than 24 people in total. In addition it is required for a principal franchise owner to have a 30% stake in the team and only $1 billion is allowed in acquisition debt. Unless ‘BuyTheBroncos’ receives an exception by the NFL, it will be limited to 24 members and likely have to partner with an interested billionaire who can afford the 30% stake in the team if it cannot find a member to be the principal owner. For now it seems the NFL prefers to have someone face to face when decision time comes opposed to a decentralized group.
Krause House DAO, created by founder James Shamenski, shares a similar mission of organizing NBA fans to buy the New Orlean Pelicans. In spite of Shamenski’s Twitter bio stating he is, ‘Future owner, Pelicans NBA,’ the DAO has hit some barriers. For now the team has responded to inquiries surrounding Krause House by simply stating “Not for Sale.”
Despite the challenges of buying a team in U.S. major league sports, DAOs are still breaking ground in other sports including one such DAO focused on global sailing. Global Sailing league SailGP and Near Protocol have partnered to announce the creation of a DAO to enable fans to be owners and decision members. SailGP stated that a DAO team could join its lineup in the 2023 season and token holders would be able to determine athlete selection, team management, and team strategy. Unlike the NFL, SailGP does not have restrictive bylaws in place which would not permit the average fan from becoming a token holder and thereby a decision maker.
Esports is another emerging frontier for DAOs. Final Frontier is a metaverse focused professional gaming guild and leader in esports gaming that is operating as a DAO. The initiative aims to “generate opportunities through existing blockchain protocols by adding FRNT token asset utilization in the virtual economy and reward distribution for members, investors and partners.” The guild has since announced its commitment to the MUD faction for Star Atlas gameplay.
Many DAOs today are still in their early stages and making decisions about getting onchain. Still, community ownership of a team has already been made reality in the world of Esports and ownership of a traditional sports team will likely be realized in the near future as more traditional institutions realize the value of Web3 and decentralized communities.
For now, many sports analysts worry that DAOs are not capable of making nuanced decisions, such as if a coach's insensitive emails amount to harassment, or fast-paced decisions such as trading athletes or signing free agents. While these do seem areas in which centralized executive decision makers shine, they can easily be overcome with strong governance protocols and do not impede DAO ownership and community based decision making in the long run.
We at Verse Network specialize in DAO governance protocols and we recognize the challenges facing DAOs getting onchain with powerful, secure governance. Verse Network empowers DAOs by providing governance solutions through our native dApps, in addition to all-in-one DAO tooling via integration with select partners.
Take the first step to bring your DAO onchain today by visiting our site.