「"What is a DAO startup?" The DAO startup company I discovered this month was amazing.！

What is DAO?

DAO stands for "Decentralized Autonomous Organization," which is an alternative organizational structure to traditional corporations. It is a system in which each participant has decision-making power and operates and governs autonomously using blockchain technology.
DAO is an organization without legal personality and is operated using smart contracts. Participants join the organization by purchasing tokens, which give them voting rights. Decisions regarding the organization's operation are made through voting by the participants.
For example, if there was a DAO organization that collects funds for producing art, participants can purchase tokens and vote on proposals to raise funds. The decision to collect funds for producing art will be determined based on the voting results. After the artwork is completed, participants can receive dividends from the profits.
In summary, DAO is a new and innovative way of organizing and operating a community or business that leverages blockchain technology to achieve decentralization and autonomy.

① Difference from conventional startups

What is a startup? A startup refers to a newly established company that aims to enter the market and grow by providing innovative technologies or services, mainly in the IT industry. Some startups, such as Google and Facebook, have become global companies.

Startups often struggle to raise funds in the initial stages and face competition when entering the market. Therefore, many startups aim to grow by raising funds from investors such as venture capitalists (VC). Additionally, successful startups may conduct an initial public offering (IPO) to accelerate their growth and fundraising. In general, startup participants achieve monetization only after the IPO.

Startups face many challenges, such as raising funds, developing prototypes, and launching products into the market. To address all of these challenges, DAOs can be used. By using DAOs, startups can achieve a more transparent and decentralized business model, allowing investors and shareholders to participate more easily. DAOs are expected to be one of the optimal solutions for startup fundraising.

Benefits of DAO　ization

Not just for startup founders! As mentioned before, DAOization can also benefit early investors who can easily receive profits through a mechanism that visualizes the growth of the business beyond stock ownership, and even make reinvestments using cryptocurrency. This not only allows for monetary gains, but also enables investors to experience and share in the success and growth of the startup.

And on top of that!!!

I came across something amazing!!

I want to talk about a DAO startup I recently found that actually inspired me to write this article. It's called "Bounty Hunters" (BTH),

which is currently running a closed NFT sale. This company is essentially a WEB3 + online crane game! They have been holding business explanation seminars via Zoom since March 1st, and as a blockchain game detective, I was really interested and actually attended the seminar! Despite being a seminar, the explanation and future developments were easy to understand, almost to the point where I thought it was just a regular game company, without much mention of cryptocurrency or NFTs. For those who are interested, try registering for their official LINE account, where they have a bot/person who can answer any questions. By the way, it takes you to a screen like this!

Let's get to the main topic!! "What does it mean to be a startup? 🔥"

The great thing about a DAO-style startup is that instead of receiving stocks, you receive a unique token! This is different from a regular startup where you would receive stocks.

A novel way of fundraising!

BTH has come up with an innovative way of raising funds without selling tokens, which is the usual method of fundraising for startups. Instead of selling tokens, BTH issues PLAY tickets required for playing crane games and proposes to raise funds by selling fractional ownership of the ticket vending machine. This system is unique and quite different from the usual fundraising methods.

For those who are not familiar with cryptocurrency, it might be difficult to understand why this fundraising method is significant. However, in simple terms, traditional startups raise funds by selling tokens (their own cryptocurrency), which can be converted into cash. When investors start selling their tokens, it can lead to a price crash, which affects the progress of the project and can cause it to fail due to a lack of funding. Since BTH has not raised funds by selling tokens, the project is not affected by any sell pressure.

Companies that operate NFT projects often face the challenge of traders influencing market capitalization, which can affect the progress of the project. To address this issue, some companies set taxes on all transactions to prevent traders from dominating the market.

Companies that operate UFO catcher crane games or online crane games face problems such as high labor costs and high shipping fees. Even though some companies generate hundreds of billions of yen in revenue, they incur a loss of tens of billions of yen due to the need to provide free shipping to enhance customer satisfaction. However, BTH offers NFT and tokens as its main products, which eliminates shipping costs for real prizes. Additionally, BTH resolves labor costs by setting up their operational factories overseas.

Bounty Hunters has an app that comes with a wallet, which is automatically created using social logins such as email and Twitter.Metamask
Bounty Hunters has a wallet included in the app, which is automatically created through normal social logins such as email authentication, SNS authentication, and devices. This eliminates the hassle of creating a virtual currency wallet in advance and securely storing the private key and seed phrase.

Please forget the private key of the automatically generated wallet. The authentication and storage are delivered and saved automatically without any concerns about email authentication, SNS authentication, and devices.

Of course, these mechanisms are fully decentralized and cannot even be viewed.

These mechanisms are integrated by Web3Auth.

Key management

A wallet can be controlled by multiple private keys and functions like a multi-sig wallet. Users can create a sequence wallet using any of the supported social login options or create a wallet using private keys that are only saved on that device.

The increased security compared to traditional blockchain wallets comes from the fact that malicious actors would need to compromise multiple independent keys rather than a single key to control the user's wallet. The philosophy is that the more independent private keys a user adds to their wallet, the higher the security of the wallet, even if each individual key only has medium-level security.

As someone who is into blockchain games, I have participated in many game startups because the information is usually only available to actual seminar attendees. Unlike typical online games, when you collaborate with blockchain game startups, you often receive amazing rewards. (I just really like games, lol.) These amazing rewards are what you may have seen in tweets like #AirDrop #エアドロ. The first beta play or in this case, supporting the early purchase of NFTs can lead to receiving company tokens as a thank you event. You can find stories of people who became billionaires from past AirDrops here!

If you want to learn more, why not attend a seminar? Although it's a zoom seminar, you don't have to show your face, and it's not necessary to talk to anyone, so you can participate without worry. 😄 It's a listener-friendly event, and this month is especially exciting. You'll miss out if you don't listen to the stories!! See you soon~