DAO Governance models and use cases

Karolina

16 May 2023
DAO Governance models and use cases

DAO governance models is a crucial aspect of DAOs. It outlines decision-making processes, voting mechanisms, funds management, and stakeholder participation. These models have been used to fund, manage and govern DAOs in the cryptocurrency space for several years. This article will discuss the rise of DAOs and examine the various governance models adopted by these innovative organizations.

Excited about joining the DAO? Check out our guide!

Understanding DAO Governance Models

DAO governance models provide a structure for decentralized decision-making and resource allocation within an organization. These models are designed to promote transparency, inclusivity, and community-driven decision-making. Unlike traditional governance structures, where decisions are made by a select group of individuals or entities, DAOs enable broader participation, allowing stakeholders to contribute and influence decisions. Governance models are critical to the success of decentralized organizations. 

DAO Governance Models - Fundamental Concepts

  • Transparency: Promoting easy access to data and involvement in decision-making.
  • Security: Establishing protective measures against harmful attacks or tampering within the DAO.
  • Flexibility: Facilitating change and growth in response to the DAO's and its ecosystem's development.
  • Inclusivity: Fostering wide-ranging community involvement and engagement of stakeholders.

Main DAO Governance Models

Main DAO governance models

There are four main DAO governance models:

  • ConstitutionDAO, 
  • Friends with Benefits DAO, 
  • JuiceboxDAO,
  • Ethereum Name Service DAO. 

ConstitutionDAO

ConstitutionDAO represents a governing framework that allows users to collectively pool their resources and acquire shared asset ownership through cryptocurrencies. This DAO governance arrangement ensures stability for its members by implementing a clear set of rules that dictate the DAO's operations. 

As one of the first DAO governance structures, ConstitutionDAO has demonstrated the potential of decentralized organizations and the power of collective efforts in achieving shared goals.

Friends with Benefits DAO

FWB, or Friends with Benefits DAO, is a community centered around social tokens that aims to assist creators and forge solid connections between its participants. Utilizing dao governance models, FWB promotes a socially-driven approach where members holding vested tokens can partake in the decision-making process. This method highlights teamwork, repute, and the value of social capital, empowering members to jointly influence the community's path and efforts.

JuiceboxDAO

JuiceboxDAO represents a novel form of dao governance models, integrating aspects of both token-based systems and conviction voting. Within this paradigm, holders of tokens possess voting authority in relation to their stake size, while also being able to demonstrate their dedication by securing their tokens for a certain time frame. As tokens are locked for longer periods, the votes gain more influence. This method encourages lasting engagement and fosters harmony between the motives of stakeholders and the accomplishments of the DAO's projects and endeavors.

Ethereum Name Service DAO

The Ethereum Name Service (ENS) Decentralized Autonomous Organization (DAO) offers a fully distributed domain name system built upon the Ethereum blockchain network. Its governance framework integrates a unique "proof of individuality" process, in which participants establish their distinctiveness through an identity authentication procedure. The ENS DAO employs a quadratic voting mechanism that enables token holders to apportion their voting authority across multiple proposals. In doing so, this model fosters equitable treatment and deters the centralization of power by dispersing influence more evenly among participants.

ENS DAO works on a three-layered approach:

  • Discourse of proposals
  • Off-chain voting used by delegates
  • Voting on the blockchain

Use Cases of DAO Governance Models

1. Decentralized Finance (DeFi)

Decentralized Autonomous Organization (DAO) governance models have significantly impacted the field of decentralized finance (DeFi). DeFi platforms often leverage DAOs to manage key protocol decisions, such as setting interest rates, defining collateral requirements, or introducing new features. Applying a DAO governance structure allows DeFi initiatives to involve community members in the decision-making process, thereby fostering a more inclusive and decentralized financial landscape.

2. Collective Investment and Fund Management

Decentralized Autonomous Organizations (DAOs) have become valuable tools for group investment and the management of funds. With the implementation of DAO governance structures, those who hold tokens can collaboratively make investment choices, resulting in a more equitable and transparent approach to investing. These DAOs enable pooling of resources, empowering participants to team up and invest in various projects, oversee funds, and apportion profits according to predetermined rules.

3. Content Creation and Curation

In the digital content space, DAO governance models offer new opportunities for content creation and curation platforms. Utilizing DAOs allows content creators and curators to obtain rewards through community-driven voting systems and decision-making procedures. This guarantees that the most valuable and high-quality content receives recognition and financial incentives, creating a fairer and more decentralized content ecosystem.

4. Decentralized Governance

Perhaps the most fundamental use case is in decentralized governance itself. DAOs can be created to manage the decision-making processes within communities, organizations, or even entire cities. By giving power back to the people, DAOs facilitate direct democratic participation, allowing individuals to have a say in matters that affect them. This enables greater transparency, accountability, and inclusivity in governance processes.

Conclusion

DAOs have revolutionized traditional management structures, enabling decentralized decision-making and value creation. With the ability to apply different models to different sectors, such as DeFi, content platforms and investments, DAOs are able to transform and revolutionize a variety of industries.

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AI in Real Estate: How Does It Support the Housing Market?

Miłosz Mach

18 Mar 2025
AI in Real Estate: How Does It Support the Housing Market?

The digital transformation is reshaping numerous sectors of the economy, and real estate is no exception. By 2025, AI will no longer be a mere gadget but a powerful tool that facilitates customer interactions, streamlines decision-making processes, and optimizes sales operations. Simultaneously, blockchain technology ensures security, transparency, and scalability in transactions. With this article, we launch a series of publications exploring AI in business, focusing today on the application of artificial intelligence within the real estate industry.

AI vs. Tradition: Key Implementations of AI in Real Estate

Designing, selling, and managing properties—traditional methods are increasingly giving way to data-driven decision-making.

Breakthroughs in Customer Service

AI-powered chatbots and virtual assistants are revolutionizing how companies interact with their customers. These tools handle hundreds of inquiries simultaneously, personalize offers, and guide clients through the purchasing process. Implementing AI agents can lead to higher-quality leads for developers and automate responses to most standard customer queries. However, technical challenges in deploying such systems include:

  • Integration with existing real estate databases: Chatbots must have access to up-to-date listings, prices, and availability.
  • Personalization of communication: Systems must adapt their interactions to individual customer needs.
  • Management of industry-specific knowledge: Chatbots require specialized expertise about local real estate markets.

Advanced Data Analysis

Cognitive AI systems utilize deep learning to analyze complex relationships within the real estate market, such as macroeconomic trends, local zoning plans, and user behavior on social media platforms. Deploying such solutions necessitates:

  • Collecting high-quality historical data.
  • Building infrastructure for real-time data processing.
  • Developing appropriate machine learning models.
  • Continuously monitoring and updating models based on new data.

Intelligent Design

Generative artificial intelligence is revolutionizing architectural design. These advanced algorithms can produce dozens of building design variants that account for site constraints, legal requirements, energy efficiency considerations, and aesthetic preferences.

Optimizing Building Energy Efficiency

Smart building management systems (BMS) leverage AI to optimize energy consumption while maintaining resident comfort. Reinforcement learning algorithms analyze data from temperature, humidity, and air quality sensors to adjust heating, cooling, and ventilation parameters effectively.

Integration of AI with Blockchain in Real Estate

The convergence of AI with blockchain technology opens up new possibilities for the real estate sector. Blockchain is a distributed database where information is stored in immutable "blocks." It ensures transaction security and data transparency while AI analyzes these data points to derive actionable insights. In practice, this means that ownership histories, all transactions, and property modifications are recorded in an unalterable format, with AI aiding in interpreting these records and informing decision-making processes.

AI has the potential to bring significant value to the real estate sector—estimated between $110 billion and $180 billion by experts at McKinsey & Company.

Key development directions over the coming years include:

  • Autonomous negotiation systems: AI agents equipped with game theory strategies capable of conducting complex negotiations.
  • AI in urban planning: Algorithms designed to plan city development and optimize spatial allocation.
  • Property tokenization: Leveraging blockchain technology to divide properties into digital tokens that enable fractional investment opportunities.

Conclusion

For companies today, the question is no longer "if" but "how" to implement AI to maximize benefits and enhance competitiveness. A strategic approach begins with identifying specific business challenges followed by selecting appropriate technologies.

What values could AI potentially bring to your organization?
  • Reduction of operational costs through automation
  • Enhanced customer experience and shorter transaction times
  • Increased accuracy in forecasts and valuations, minimizing business risks
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Want to implement AI in your real estate business?

Nextrope specializes in implementing AI and blockchain solutions tailored to specific business needs. Our expertise allows us to:

  • Create intelligent chatbots that serve customers 24/7
  • Implement analytical systems for property valuation
  • Build secure blockchain solutions for real estate transactions
Schedule a free consultation

Or check out other articles from the "AI in Business" series

AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

Gracjan Prusik

11 Mar 2025
AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

AI Revolution in the Frontend Developer's Workshop

In today's world, programming without AI support means giving up a powerful tool that radically increases a developer's productivity and efficiency. For the modern developer, AI in frontend automation is not just a curiosity, but a key tool that enhances productivity. From automatically generating components, to refactoring, and testing – AI tools are fundamentally changing our daily work, allowing us to focus on the creative aspects of programming instead of the tedious task of writing repetitive code. In this article, I will show how these tools are most commonly used to work faster, smarter, and with greater satisfaction.

This post kicks off a series dedicated to the use of AI in frontend automation, where we will analyze and discuss specific tools, techniques, and practical use cases of AI that help developers in their everyday tasks.

AI in Frontend Automation – How It Helps with Code Refactoring

One of the most common uses of AI is improving code quality and finding errors. These tools can analyze code and suggest optimizations. As a result, we will be able to write code much faster and significantly reduce the risk of human error.

How AI Saves Us from Frustrating Bugs

Imagine this situation: you spend hours debugging an application, not understanding why data isn't being fetched. Everything seems correct, the syntax is fine, yet something isn't working. Often, the problem lies in small details that are hard to catch when reviewing the code.

Let’s take a look at an example:

function fetchData() {
    fetch("htts://jsonplaceholder.typicode.com/posts")
      .then((response) => response.json())
      .then((data) => console.log(data))
      .catch((error) => console.error(error));
}

At first glance, the code looks correct. However, upon running it, no data is retrieved. Why? There’s a typo in the URL – "htts" instead of "https." This is a classic example of an error that could cost a developer hours of frustrating debugging.

When we ask AI to refactor this code, not only will we receive a more readable version using newer patterns (async/await), but also – and most importantly – AI will automatically detect and fix the typo in the URL:

async function fetchPosts() {
    try {
      const response = await fetch(
        "https://jsonplaceholder.typicode.com/posts"
      );
      const data = await response.json();
      console.log(data);
    } catch (error) {
      console.error(error);
    }
}

How AI in Frontend Automation Speeds Up UI Creation

One of the most obvious applications of AI in frontend development is generating UI components. Tools like GitHub Copilot, ChatGPT, or Claude can generate component code based on a short description or an image provided to them.

With these tools, we can create complex user interfaces in just a few seconds. Generating a complete, functional UI component often takes less than a minute. Furthermore, the generated code is typically error-free, includes appropriate animations, and is fully responsive, adapting to different screen sizes. It is important to describe exactly what we expect.

Here’s a view generated by Claude after entering the request: “Based on the loaded data, display posts. The page should be responsive. The main colors are: #CCFF89, #151515, and #E4E4E4.”

Generated posts view

AI in Code Analysis and Understanding

AI can analyze existing code and help understand it, which is particularly useful in large, complex projects or code written by someone else.

Example: Generating a summary of a function's behavior

Let’s assume we have a function for processing user data, the workings of which we don’t understand at first glance. AI can analyze the code and generate a readable explanation:

function processUserData(users) {
  return users
    .filter(user => user.isActive) // Checks the `isActive` value for each user and keeps only the objects where `isActive` is true
    .map(user => ({ 
      id: user.id, // Retrieves the `id` value from each user object
      name: `${user.firstName} ${user.lastName}`, // Creates a new string by combining `firstName` and `lastName`
      email: user.email.toLowerCase(), // Converts the email address to lowercase
    }));
}

In this case, AI not only summarizes the code's functionality but also breaks down individual operations into easier-to-understand segments.

AI in Frontend Automation – Translations and Error Detection

Every frontend developer knows that programming isn’t just about creatively building interfaces—it also involves many repetitive, tedious tasks. One of these is implementing translations for multilingual applications (i18n). Adding translations for each key in JSON files and then verifying them can be time-consuming and error-prone.

However, AI can significantly speed up this process. Using ChatGPT, DeepSeek, or Claude allows for automatic generation of translations for the user interface, as well as detecting linguistic and stylistic errors.

Example:

We have a translation file in JSON format:

{
  "welcome_message": "Welcome to our application!",
  "logout_button": "Log out",
  "error_message": "Something went wrong. Please try again later."
}

AI can automatically generate its Polish version:

{
  "welcome_message": "Witaj w naszej aplikacji!",
  "logout_button": "Wyloguj się",
  "error_message": "Coś poszło nie tak. Spróbuj ponownie później."
}

Moreover, AI can detect spelling errors or inconsistencies in translations. For example, if one part of the application uses "Log out" and another says "Exit," AI can suggest unifying the terminology.

This type of automation not only saves time but also minimizes the risk of human errors. And this is just one example – AI also assists in generating documentation, writing tests, and optimizing performance, which we will discuss in upcoming articles.

Summary

Artificial intelligence is transforming the way frontend developers work daily. From generating components and refactoring code to detecting errors, automating testing, and documentation—AI significantly accelerates and streamlines the development process. Without these tools, we would lose a lot of valuable time, which we certainly want to avoid.

In the next parts of this series, we will cover topics such as:

Stay tuned to keep up with the latest insights!