Non-Fungible Tokens (NFTs) are one-of-a-kind digital collectibles that can become a valuable and sought-after investment. Decentralized Autonomous Organizations (DAO) are being created to “crowdsource” the funds necessary for ultra-rare NFTs. DAOs are designed to automate decisions and facilitate cryptocurrency transactions. When used as an investment platform, investors can collaborate on investments by sending money directly to the DAO. Investors can get tokens in return, allowing them voting rights on possible projects. In this week’s #WebsiteWednesday, we’ll introduce you to a DAO that has developed a community of NFT enthusiasts and investors, and created a platform for investing in ownable, blockchain-based assets: FlamingoDAO.xyz.
FlamingoDAO.xyz is an NFT-focused DAO project that has built a community of approximately 40 NFT enthusiasts and accredited investors, and nearly 4,800 ETH in pooled capital (as of June 2021). It aims to create a channel for its members to collectively explore and evaluate the investment opportunities surrounding ownable, blockchain-based assets. These investment opportunities include various new forms of digital art, collectibles, and in-game items. One of the collective’s most notable purchases of 2021 was a punk rock style digital art piece NFT – known as a “Cryptopunk” – for 605 ETH, that is now worth over $1M in less than six months. The purchase was the collective’s most expensive purchase, which they added to their collection of 215 Cryptopunk NFTs. As stated on their website, “ Any purchased NFTs can be lent, held, displayed in a digital art gallery, or used as collateral in other DeFi platforms. The direction is up to the Members.” Their collection also includes five rare Autoglyphs, unique NFTs by digital artists known as Larva Labs created by code running on the Ethereum blockchain. Recently, FlamingoDAO.xyz consigned an Autoglyph from their collection to Sotheby’s, making them the first DAO to consign a piece of work to a major auction house.
Profits from any sale of FlamingoDAO.xyz’s NFTs are proportionally allocated to the members based on their investment amounts. NFT-enthusiasts interested in becoming a FlamingoDAO.xyz member, known as “medicis of NFTs,” must complete a special accreditation process. The process consists of varied financial service guidelines tests, and can take a couple of days to complete. The DAO, launched in October 2020, has set a cap on its community at 100 members in an effort to comply with U.S. securities law and to prevent any one party from controlling a disproportionate amount of assets.
Every member has a say in the activities, decisions, strategies and direction of the community through the power of votes via the Flamingo dApp, or decentralized application, which is a computer application that runs on a distributed computing system. The power of a member’s vote is directly proportional to the volume of ownership units (Flamingo Units) they possess. Members can purchase Flamingo Units in blocks of 100,000 units which are worth 60 ETH each. One block of Flamingo Units grants the member 1% voting rights in the community and the rights to receive 1% of the proceeds from the community’s investments.
FlamingoDAO.xyz members also have the opportunity to invest directly into a software company or platform. The community’s investments include:
We are excited to have the innovative FlamingoDAO.xyz as a member of the .xyz community, demonstrating once again that .xyz is home to forward-thinkers utilizing the latest in technology. You can learn more about FlamingoDAO.xyz by following them on Twitter or by visiting FlamingoDAO.xyz.
XYZ is proud to share about the many incredible members that make up the XYZ community! We encourage you to do your own research before using the products and services of the websites we feature. The information about products and services contained in this blog post does not constitute endorsement or recommendation by XYZ.