# Mission Improve lives through crypto humanDAO is a global community funded social impact DAO, built around core pillars (below) to onboard people from low economic, underserved backgrounds into crypto and web3. We leverage any crypto-tech (NFTs, P2E, L2, etc.) that can help to improve lives.
Nearly 3 billion people live on less than $5/day. Crypto and blockchain technology are creating a trustless digital economy accessible to anyone with an internet connection, opening up a literal world of new opportunities for those who have time and skills to contribute to the growing number of web3-focused projects, companies and DAOs. These organizations are typically more open to remote work and flexible hours than traditional employers, removing many of the barriers to entry into the workforce. humanDAO’s mission is to be the link between these people and the opportunities crypto presents. Through education, training, and connections to new income earning opportunities, we exist to improve the lives of those in underserved communities. ### **CORE PILLARS** ***WAGES—** Through P2E, L2E, and any new business model cryto spwans or disrupts, we can provide income through web3 gig and job related opportunities in the metaverse and beyond.* ***EDUCATION—** Incentivize learning about crypto and web3 through DAO tokenomics, turning visitors into official DAO stakeholders by airdropping tokens upon education completion. Actual learning modules that are gamified and require engagement to absorb the information. From learning about crypto benefits, utilizing them, securing it, and learning about new web3 roles and opportunities.* ***FEED—** A portion of the revenue stream will provide meals through our partnership with* [*Food For Life Global*](https://ffl.org/) *on a monthly basis.* ***FUND—** Projects by the underserved, for the underserved, from micro-lending to more ambitious projects. Any member can submit proposals for impactful projects to be voted on by the DAO. We can crowdsource thorough research and analysis regarding the most impactful projects to fund through our global yet localized member base.* We aspire to have humanDAO representation in every nation. Ambassadors with boots on the ground helping their local communities learn about these new tools and opportunities crypto is producing and becoming early adopters of the next market web3 and crypto disrupt. Early members have a significant opportunity to grow with the DAO in their local communities. # About The humanDAO is a decentralized autonomous organization with a specific goal: to improve human lives by facilitating options outside their local economy and connecting them to new opportunities in the decentralized digital economies, or the metaverse. Help can be in the form of education, work, funding, or lending; a type of jobs board, education center, and opportunity zone for web3 and the new digital gig-economy. In the humanDAO, one can learn about the crypto ecosystem, its opportunities, develop their knowledge/skills, find work, or lend assets. We accomplish our goal utilizing new crypto platforms and their innovative business models starting to emerge to create revenue streams that benefit our stakeholders and community. In general, the DAO’s activities include: * Producing revenue through the rental or sales of DAO-owned assets. * Building a global community of users who play competitively and collect in-game rewards. * Utilizing a portion of the revenues to feed those in underserved communities. * Educating the masses onboarding through P2E and other avenues about crypto and web3. * Developing the skills and reputations of our community to prepare them for more impactful, lucrative opportunities in emerging web3 projects, companies, and DAOs * Funding and investing in projects from games and platforms to micro-lending and more ambitious projects. humanDAO has supplied over 3,000 meals through our partnership with Food For Life global. We also supply wages to 1,000+ community members, and our community exceeds 65,000 members. We are now expanding from our origins in P2E gaming into more diverse projects and revenue streams. Read on to find out more! # Meals One of our [Core Pillars](broken://pages/x17NeoT7cMrh8CjgI1Tu) is to feed those most in need. A portion of our revenue stream (currently 5%) will provide meals through our partnership with [Food For Life Global](https://ffl.org/) on a monthly recurring basis. FFL has served over 7 billion meals to date. In the not so distant future we hope to be one of the largest providers of meals to the underserved communities of the world. Read more about our partnership and meals program [here](https://medium.com/@TheHumanDAO/partnership-with-food-for-life-global-establishes-another-core-pillar-of-humandaos-people-focused-42c450558977). # Play-to-Earn (P2E) One of the catalysts for the explosion of P2E gaming was the ability to lend assets safely. HumanDAO loans out non-fungible tokens (NFT) to community members in an ISA (income sharing agreement) style agreement. These NFTs allow members to participate in P2E crypto games, like the popular Axie Infinity game. They earn crypto tokens through playing, which they can exchange for local currency. For lending the NFTs, the humanDAO takes a percentage of the tokens earned. humanDAO’s genesis revenue model involved buying yield producing NFTs, governance tokens, and ownership stakes in promising projects and protocols. Our community contributes their time to generate value from these assets and receive the majority of the income they produce. HumanDAO provides people with opportunities in both emerging markets with wages and developed nations with new profound revenue streams.

A few examples of crypto games

Axie Infinity was the platform that introduced much of the world to the potential of P2E. In its wake, hundreds of games are being developed, exploring new and innovative ways to construct in-game economies around enjoyable gaming experiences. P2E is leveraged as part of our mission to onboard the masses from the bottom up into web3, thanks to the mainstream appeal of games, and mobile gaming in particular. We have always viewed gaming as the first of many verticals we can utilize, and we are excited to see the next generation of games and financial opportunities they will offer. # Human Task Force The Human Task Force (HTF) continues to lead the charge in revolutionizing the gig economy within the web3 realm. We are dedicated to offering a diverse array of tasks — from meticulous data entry and comparative price analysis to the creation of compelling presentations and the astute research of dynamic crypto projects. By leveraging the robust HTF platform, users not only stay ahead in the fast-paced crypto environment but also extend meaningful, flexible employment opportunities to individuals in underserved communities. Our platform stands as a beacon of empowerment, ensuring safe and valuable work that supports both professional growth and community development. HTF's commitment to innovation is reinforced by our community-funded model, allowing us to sidestep traditional VC dependencies. This autonomy fosters a ground-breaking business framework that simultaneously ensures competitive wages and entrusts the DAO along with its treasury with the equitable distribution of ownership and responsibilities. Our focus is on nurturing sustainable revenue avenues that can withstand market fluctuations. Our enhanced digital presence includes a user-friendly website and a comprehensive application designed for token holders. This ecosystem is supported by a cadre of skilled assistants who have demonstrated exceptional proficiency in communication and problem-solving, having undergone rigorous assessment. As we evolve, so does our platform. We invite you to be a part of this growth, to contribute to a system that not only streamlines task management but also contributes to a larger vision of societal advancement. Discover the latest at HTF and join us in shaping the future of work: # humanDAO Academy Education is one of the DAO’s core pillars. We believe it is the first step towards bringing millions of people into crypto’s new global digital economy. Most of our community experience crypto and web3 for the first time through the DAO, so launching an educational platform was critical. Everyone is welcome to participate at and start building your very own on-chain resume. Community members will be able to complete lessons and modules to receive a non-transferrable NFT (also known as Soulbound Tokens) to show they have completed the education modules. These NFTs will become increasingly valuable as humanDAO begins to open up job opportunities within the web3 space, where the NFTs will verify their knowledge levels by serving as on-chain credentials.

A sample of what's available to learn through humanDAO Academy

Our long term vision is to provide anyone with an end-to-end journey from zero crypto knowledge to becoming an experienced web3 contributor, equipped with the skills to forge a long term career. humanDAO Academy is the first step; one that will give graduates greater confidence to explore DAOs, NFTs, DeFi and other opportunities to find their strengths and passions. There are five modules to explore and they are all free to complete: * Crypto wallets * Crypto 101 * humanDAO * Financial literacy * Web3 opportunities # Help us buidl Anyone can become a DAO member as long as they are willing to supply time or resources. If you want to help us buidl this DAO, [join us on Discord](https://discord.gg/qebZkFbRgJ), then post in the "builder interest" channel. Or reach out on our [website contact form](https://humandao.org/) at the bottom of the page. # $HDAO Token ***Make sure to read the*** [***disclaimers***](broken://pages/2QGup6PegfiSsLURWPgR) ***and*** [***legal notices*** ](broken://pages/wjjRbPeZUmylpHVWPwr2)***before purchasing any HDAO tokens or attempting to use the humanDAO network.*** * Ethereum mainnet contract address: 0xdac657ffd44a3b9d8aba8749830bf14beb66ff2d * Polygon network token address: 0x72928d5436ff65e57f72d5566dcd3baedc649a88 * DEX - Polygon network Balancer pool [**found here**](https://polygon.balancer.fi/#/pool/0xb53f4e2f1e7a1b8b9d09d2f2739ac6753f5ba5cb000200000000000000000137) * DEX - Ethereum mainnet pool on [Uniswap](https://app.uniswap.org/swap); search for the $HDAO ticker HumanDAO has launched a governance token to incentivize growth and decentralize the network. The protocol is automated by smart contracts instructed by consensus through the DAO based on [governance](broken://pages/Cq0JmmbfEYf5icCnZQv5) proposals and voting of a distributed network of token holders. Through the power of tokens, one can gain exposure to the value of the community as a whole. Tokens represent voting rights in the DAO as well as utility throughout the humanDAO network. * *Participants in the DAO will be owners, managers, and members of the humanDAO network.* * *All token holders can propose and vote on the direction and future of the DAO.* * *Decision-making will be prorated based on participants’ ownership of the overall DAO through HDAO token ownership.* * *Users can earn HDAO tokens in a community incentive programs by completing work, education, or other tasks that promote the growth and revenues of the humanDAO.* **This "community bounty program" allows HDAO tokens to be distributed further to participants through active DAO involvement. Contributors to humanDAO will earn HDAO tokens without buying them, i.e. education modules. Thus, anyone can gain equity in the project and have an actual say in the DAOs governance and direction.** # Tokenomics There will be a total of 1,000,000,000 HDAO tokens minted. Supply distribution will happen over time at scheduled phases for different purposes. Please read the token allocation section for more info. Nearly 70% will be controlled by the community.
**The humanDAO network should be owned and operated by a diverse group of people. Not just those who can afford to buy the token or are fortunate enough to be early. Many of the communities we look to impact are not yet in crypto or web3. Long-term thinking and engineering are needed.** Therefore, a significant portion of the tokens (community allocation below) will be distributed over ten years to allocate tokens for long-term goals and align incentives for future participants. Ultimately DAO governance determines the community initiatives, allocations, and distribution. ### Allocation *TGE = token generation event* *There were no private sales pre-launch* | Summary | # Tokens | % | Notes | | ------------------ | :---------: | :-: | --------------------------------------- | | Community | 550,000,000 | 55% | 10% TGE and 90% 1yr lock + 10yr vesting | | Founders | 100,000,000 | 10% | 5% TGE and 95% 1yr lock + 4yr vesting | | Builders | 100,000,000 | 10% | 10% TGE and 90% 1yr lock + 4yr vesting | | Advisors | 50,000,000 | 5% | 10% TGE and 90% 1yr lock + 3yr vesting | | Treasury | 150,000,000 | 15% | Varies | | Public Sale/Launch | 50,000,000 | 5% | No lock | ### Vesting
# Value Accrual HumanDAO is at the crossroads of some major burgeoning markets: * ***NFT** sales topped $10 billion in first half of 2021. NFTs are going mainstream as you read this.* * ***Decentralized*** ***Finance** has hit $120B in total locked value, allowing anyone anywhere to lend, borrow, invest, and trade peer-to-peer instantly.* * *The global **gaming** market alone reached a value of $180B in 2020 and was bigger than the movie industry and North American sports combined (this was before people owned the in-game assets or got paid to play games). The rise of blockchain gaming and virtual worlds has unlocked new gaming models (P2E).* HumanDAO’s goal is to maximize the value of new crypto innovations like NFTs and P2E for its members. **HDAO is a gateway to the metaverse, functioning like a metaverse index**. The value of all activities in the humanDAO will be captured in the fully diluted market capitalization of HDAO governance tokens. Some examples of how HDAO Tokens may accrue value: * Asset utilization * Lending—in game characters (i.e. Axies) are lent to members to earn rewards. Players receive 70% and the DAO 30%. * Renting—in the case of land, third parties can rent our assets to conduct economic activities (i.e., virtual shop) and pay a daily/monthly fee or a profit share. * Selling—assets can be sold to realize large gains and profits. * *Token yield is generated by utilizing and staking tokens in DeFi protocols.* * *The value of the humanDAO’s owned assets —tokens, NFTs, SAFTs, etc.* * *New revenue streams from the metaverse talent network services/products.* * *Stake HDAO to vote and participate in DAO activities.* * *% of APY rewards generated from treasury’s DeFi farming activities.* * *Stake HDAO for token rewards related to its overall activities.* * *Use HDAO tokens to pay or fund services and projects in its network.* **Game developers (as well as other web3 entities) will want to tap in and integrate with the humanDAO and our massive user base of built-in gamers and web3 users—creating favorable terms and conditions for the DAO.** **By optimizing the DAO’s network of resources (community and treasury), and the value multiplier as the user base grows, we can facilitate a massive digital economy in the web3.** # $ENRG Token The $ENRG token powers the Human Task Force platform. $ENRG is an ERC20 token powering HTF, its unit of account. Think of 1 ENRG = 30 mins of work. The token allows for instant cash out and makes HTF economic activity visible onchain. * Assistants receive $ENRG for completing tasks * $ENRG can be redeemed (burned) for $2 * However users buy (mint) $ENRG for $2.50 * The spread between mint/burn is the platform fee **All platform fees are distributed to $HDAO stakers as stablecoin airdrops.** A standout differentiator from web2 platforms is the use of the platform fees. Traditional web2 gig companies would use the platform fee for revenue, HTF will airdrop the platform fee to stakers of the $HDAO token. This mechanism incentives community growth of the platform along with the humanDAO native token. #### **Opportunity:** * **Virtuous Economic Model:** HTF fuels its economic engine through transactions with the $ENRG token. This in turn helps fuel the DAO's sustainability. * **Community Rewards:** Fees collected through HTF are airdropped monthly to $HDAO stakers, reinforcing community-centric ethos. Encourages stakers to act as informal affiliates, enhancing the platform's growth by attracting more users and engagement. * **Elevating Marginalized Communities**: A dedicated share of our revenue is channelled towards uplifting individuals in underserved regions, reflecting our core mission of fostering economic opportunities and empowerment. # Step by Step Buying Guide Ready to unlock the HTF platform? Start by purchasing ENRG tokens! Here’s how: **Step 1: View Your Assets** Click on the dropdown menu next to your wallet address. In the dropdown list, select “Assets” to see your wallet balances. Here, you’ll find options to “Deposit” and “Withdraw.”
**Step 2: Deposit for ENRG** Click “Deposit” to go to the purchase page for $ENRG tokens. Each ENRG token costs $2.50 to mint and grants you access to our assistant pool, where skilled professionals are ready to help manage your tasks.
**Step 3: Choose Your Payment Token**
You can buy ENRG using any of the following tokens: * **USDC.e** * **USDC** * **HDAO** * **WETH**
*Tip: Get special deals when purchasing ENRG with HDAO tokens! Reach out to our team on Discord for more info.*
**Step 4: View Your ENRG Tokens** Once purchased, your ENRG balance will appear in the app. To view it in your wallet, import the ENRG contract address: `0x5083B81a1FF47959264396739C8A93e00Abb4529`.
*** **Creating a Task on HTF** Now, let’s get your tasks set up: 1. **Create a New Task**
Click on the “Create Task +” button to begin. Choose “New Task” to start from scratch or use **AI-Assisted Task Creation**.
2. **AI-Assisted Task Creation** \ Our in-house GPT will help you quickly set up tasks across HTF’s three key services: * **Social Interactions** * **Data Collection** * **Shorts Creation**
HTF’s AI will guide you through the steps to create your short task.
3. **Edit and Publish** \ Customize the task details as needed before saving and publishing.
And just like that, your task is live and ready for our top-tier assistants to take on!
# Community & Rewards Community rewards and initiatives will be used to foster DAO growth and further decentralization. **The humanDAO network should be owned and operated by a diverse group of people. Not just those who can afford to buy the token or are fortunate enough to be early. Many of the communities we look to impact are not yet in crypto or web3. Long-term thinking and engineering are needed.** Therefore, a significant portion of the tokens will be distributed over ten years to allocate tokens for long-term goals and align incentives for future participants. Ultimately DAO governance determines the community initiatives, allocations, and distribution. ### Launch Rewards **Only 21 million tokens were sold at auction, thus rewards were much less then 10m allotted. These tokens stay in treasury.** *11,000,000 tokens (2% of total community tokens) are used to reward public sale participants and early members and contributors.* * *10m tokens will be used in a 20% rewards bonus program for participating in the public sale if all available 50 million tokens are sold in auction. (Ex. If you purchase 100 tokens, you will receive 20 bonus tokens.)* * *1m tokens will be distributed to early community members and contributors. Any unclaimed tokens will go back to the community allocation.* ## Staking / Liquidity Rewards **Staking is now live and can be** [**found here**](https://staking.humandao.org/#/) **Staking instructions can be**[ **found here**](https://medium.com/thehumandao/humandao-staking-release-8e4c617ad2cb) *(Pre-launch text)* *We will be utilizing the popular Illuvium variable locking contracts to provide rewards for liquidity providers. Variable locking changes your token weight based on the duration of your lock. For example, if the maximum weight of a locked token is 2, which occurs when you lock for a period of 12 months, you effectively double your rewards over the period.* *Staking vaults will be introduced to receive the rewards and revenues directly through smart contracts into their accounts. The intention is to create staking vaults to earn rewards from the network as an APY.* # Governance This is an overview of the humanDAO's governance processes, and how you can get involved. ### Governance Process Owning even a single humanDAO token gives the holder a voice about the future of the DAO. This document is a living document intended to be owned, modified and enforced by the humanDAO community. This is a new process and as the humanDAO grows we expect these processes to change based on community engagement. #### Proposals and Voting Any DAO member can submit proposals for the ecosystem to cast their votes. Tokens may even be granted as rewards to community members that create winning proposals for the DAO to implement. Proposals and voting will be related but not limited to the following subjects: * Technology * Products and projects * Token distribution * Governance structure ### Venues #### Forum ​[**forum.humandao.org**](https://forum.humandao.org/) is a forum for governance-related discussion. Community members must register for an account before sharing or liking posts. Registering for the forum allows community members to create posts. To further draft proposals to active proposals, please request Posting rights for the relevant forum #### Snapshot **​**[**Snapshot**](https://snapshot.org/#/humandao.eth) is a simple voting interface that allows users to signal sentiment off-chain. Votes on snapshot are weighted by the number of humanDAO delegated to the address used to vote. ### Process The current proposal process consists of several steps summarized below. As the DAO grows, the process will adapt over time to reflect those changes. We want to promote discussion surrounding how we handle governance and the current process is subject to change.The steps put forth are considered industry standard for many large projects in their early stages. #### Phase 1: Sanity Check - Discourse In the Discuss forum, anyone can start a topic explaining their idea or proposal allowing all other community members to respond to this. The purpose of the Sanity Check is to determine if there is sufficient will to make changes to the status quo. All Sanity Check posts must contain a poll to gauge community backing. In order for the sanity check to be passed through to a Draft Proposal it needs to fulfil the following criteria: * Minimum 2 days of discussion * 60% community approval within the poll #### Phase 2: Draft Proposal - Discourse The purpose of the [Draft Proposal](https://1841094959-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTDy7Gbd6svOnsvi1OnMc%2Fuploads%2F3J3EBHMVVpzX5UkdIhCJ%2Fproposal%20template?alt=media) is to establish formal discussion around a potential proposal. To create a Draft Proposal, create a new topic in the relevant forum, using the template pinned to the top of the category. Link to your sanity check thread in the proposal draft; draft proposals that were not preceded by a sanity check will be removed by moderators. We want to promote healthy discussion within this phase of the proposal process. When replying to discussions as a community member, please ensure you are giving constructive criticism with clear reasons to why you are for or against the proposal. We advise to not rush proposals to voting on snapshot. For that matter, discussions must be up for a minimum of three days before they can be considered for voting. *If the a proposal is presented by a member of the core builder team, which has been discussed internally - Phase 2 can be reduced.* In order for the Draft Proposal to be passed through to an active proposal it needs to fulfil the following criteria: * Minimum 3 days of discussion (unless pre-arranged builder proposal) * Must have the approve, reject, and **needs revision** options If the proposal has hit the above criteria it will be moved to phase 3—an active proposal to be voted upon on-chain/snapshot. ### Phase 3: Active Proposal - Snapshot Request that a moderator advance your proposal to a vote by tagging @moderators in a reply. They will move your proposal from Draft Proposals to Active Proposal in Snapshot Assign your proposal a proposal number in the form HIP###. (humanDAO improvement proposal) Create a snapshot vote for your proposal with a link to the proposal post. * 24hr vote delay * 48 hrs of voting * Receive quorum of 60% approval When the proposal receives a majority of the votes in its allotted time, the proposal will be implemented by the multi-sig. The goal is for humanDAO to gradually distribute a significant portion of its community tokens throughout the network in many different ways ([more info](broken://pages/san1xJddatZgHueMJTMv)). Token holders will determine the course of action. ### Foundation The humanDAO is represented in the real world by a Cayman Islands Foundation. Having a legal entity that represents the DAO in the "real world" is valuable for a number of reasons: * It provides limited liability to DAO participants for the actions of the DAO. Without a legal entity, participants may be individually held liable for anything the DAO as a whole does. * It is capable of complying with taxation requirements - without a legal entity, DAO participants may be held liable for a proportion of the DAO's income, even if they are not able to access these funds. * It is capable of entering into contracts with other "real world" entities, of holding assets (including IP rights), and so forth. {% file src="/files/HHX1JlRGCKIIh1gbtxQ0" %} # Proposal Template Please use the following template to create a Draft Proposal #### *This Draft Proposal can be found in the* [*forum*](https://forum.humandao.org/t/governance-template/14) *as well.* ### Title Write a clear title without a number. Moderators will add a number once a draft proposal moves to an active proposal to commence on-chain voting ### Authors & Disclosure Your name and any other contributors if applicable. Please use this space to disclose any information surrounding your background which would cause a directional bias for your vote. E.g you have a vested interest for the vote to lean one way or the other. ### Summary A brief explanation of your proposal preferably non technical for anyone to understand ### Abstract Thorough coverage going in depth into your proposal explaining what it is that you wish to propose and what will be changed if/when your proposal passes on-chain voting. ### Motivation Answer the question: why do you want this proposal to be implemented? In here you can add links and references if necessary. ### Budget What is the required budget to implement this proposal? If not sure, try and add an estimation. If no budget is required please add n/a ### **P2E/NFT Asset Template** *\*\*Only to be used for proposals into the investment of new games or assets\*\** This decision can not be taken lightly. This will cause the formation and funding of a subDAO. This subDAO will require subject matter experts in this game/virtual world to manage, grow and improve the revenue streams. ### Rationale Provide a clear understanding why your proposal is a good idea considering both the pros and cons of your idea. This can be done by either answering questions, or in paragraph form. ### Poll Link to your poll from the sanity check ### Copyright Please add the following sentence: **“Copyright and related rights waived via Creative Commons** [**CC0 1**](https://creativecommons.org/publicdomain/zero/1.0/)**”** # Treasury ### Multi Signature We strive for security and transparency. Utilizing a multi-sig will alleviate fears and mitigate bad actors. A 3 of 6 multi-sig address is being used on both Polygon and Ethereum mainnet from a diverse group of builders in crypto. The multi-sig is formed by the following parties: * [@Chris2pherChase](https://twitter.com/chris2pherchase?s=21) - humanDAO/ Chain Haven * [@Mona El Isa](https://twitter.com/mona_el_isa?s=21) - Avant Garde / Enzyme * [@Defi\_Dad ](https://twitter.com/defi_dad?s=21)- Zappier / 4RCapital / epnsproject * [@Abv Avg Joe](https://twitter.com/abv_avg_joe?s=21) - banklessDAO / DeFipedia * [@r ross campbell](https://twitter.com/r_ross_campbell?s=21) - sushiswap / LexDAO * [@adamjmdawson](https://twitter.com/adamjmdawson) - humanDAO / Orbis The multi-sig Treasury address for Polygon is: [0x08C724340c1438fe5e20b84BA9CaC89a20144414](https://polygonscan.com/address/0x08c724340c1438fe5e20b84ba9cac89a20144414) The multi-sig Treasury address for Ethereum is [0x6C48814701c98F0D24b1B891fAC254A817Aadfdf](https://etherscan.io/address/0x6C48814701c98F0D24b1B891fAC254A817Aadfdf) Remaining vested tokens can be found here: [0xc63bd01cfb9CE9837424f96c969e5435A9b9A46d](https://etherscan.io/address/0xc63bd01cfb9CE9837424f96c969e5435A9b9A46d)\ \ The multi-sig for the Builder Safe (active funding) is: [0xF84c89C30A74Bf95385aB61E8b2769C99681794b](https://polygonscan.com/address/0xF84c89C30A74Bf95385aB61E8b2769C99681794b) ### Economic Activities * *Purchase of assets in the form of cryptocurrencies, virtual assets in the Metaverse, SAFTs, in-game tokens as well as other NFTs to contribute to the development of Metaverse economies.* * *Arbitrage farms to maximize yields.* * *Fund projects, products and services approved by DAO members.* * *Manage locked, unvested, undistributed tokens of all parties.* * *Provide guidance in events that involve debt and interest payments, acquisition of assets including any buybacks and future fundraising rounds.* * *Perform financial operations such as accounting, audits, and reporting.* ### Dashboard [Click here for the HDAO dashboard with current investments and asset holdings](https://app.humandao.org/dashboard) # Glossary | Term | Meaning | | --------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | DAO | A Decentralised Autonomous Organisation is a method of governance where rules are encoded as a computer program that is transparent, controlled through votes of a distributed group of organization members rather than a single entity. | | TGE | Token Generation Event refers to the launch of the DAO network when the governance tokens are released to participants. | | Core Builders | In charge of DAO operations and other business-related ventures. Creates, implements and manages key DAO features for the benefit of the DAO. Proposes questions to DAO and also votes. | | Functional Team | Consists of HDAO community managers (regional and overarching) and “game masters” to help bridge the gap between the game and its players. Helps implement and manage key DAO features. Communicates with the core team. | | DAO Member | Any person holding HDAO tokens is considered a DAO Member | | Metaverse | The collective term for all the elements that make up virtual worlds, including the ecosystem of people and objects that form economies within those worlds. | | NFT | Non fungible tokens are used to create verifiable digital scarcity, as well as digital ownership, and the possibility of asset interoperability across multiple platforms. | | Play-to-earn | A term to describe games in which the players are able to generate real-world rewards for their in-game activities. These games are typically limited to NFT-based blockchain games as they rely on the rewards being transferable on an open market. | | Token Stakers | Anyone who actively stakes a set amount of HDAO tokens. Holds a voting percentage within the DAO. Actively participates in the DAO, or delegates part or all of their vote. | | Treasury | Holds all funds earned by the DAO that the DAO has earned through its direct operations. | | Level Up System | Members level up through quests within he community and their respective game/class to earn achievements, badges, rewards and prizes along the way. As they achieve new levels, players are rewarded with HDAO tokens, or other prizes, such as HDAO merchandise. | # Disclaimer Please Read Before Purchasing HDAO Tokens or Attempting to Use the HDAO Network THIS DISCLAIMER IS MEANT TO PROVIDE THE READER WITH INFORMATION REGARDING HOW THE HUMANDAO (“HDAO”) TOKEN AND NETWORK OPERATE. IT IS MEANT TO INFORM THE CURRENT DESIGN OF THE HDAO TOKEN AND NETWORK AS WELL AS ITS PLANNED DESIGN. THIS IS INFORMATIONAL ONLY AND DOES NOT REPRESENT A COMMITMENT TO YOU, THE READER, OF ANY OF THE CURRENT OR FUTURE DESIGNS OR FUNCTIONALITY OF THE HDAO TOKEN OR NETWORK. MOREOVER, THIS IS NOT A SOLICITATION TO PURCHASE HDAO TOKENS (“TOKENS”). PURCHASING THE HDAO TOKEN INVOLVES CONSIDERABLE RISK. THE TOKEN MAY BECOME WORTHLESS AND THE PLATFORM MAY NOT MEET YOUR NEEDS. NO PURCHASES CAN BE REFUNDED OR EXCHANGED. DO NOT PURCHASE THE HDAO TOKEN WITH MONEY YOU CANNOT AFFORD TO LOSE. THERE IS NO GUARANTEE THAT THE UTILITY OF THE HDAO TOKENS WILL MEET YOUR NEEDS OR EXPECTATIONS. IF YOU PURCHASE THE TOKENS YOU ARE INHERENTLY ASSUMING THE RISK OF ITS LOSS OF VALUE FROM THE TIME OF THE PURCHASE, AND YOU ARE AGREEING THAT THE TOKENS’ PRESENT FUNCTIONALITY MIGHT BE ALL THEY ARE EVER CAPABLE OF DOING. IF YOU PURCHASE ANY OF THE TOKENS YOU AGREE THAT YOU HAVE NO RECOURSE AND YOU WILL NOT ASSERT ANY CLAIM, ACTION, JUDGEMENT OR REMEDY AGAINST HUMANDAO IF THE TOKEN LOSES VALUE, THE HDAO PLATFORM OR NETWORK CEASES TO FUNCTION, OR IF THE PLATFORM OR NETWORK DOES NOT ULTIMATELY MEET EXPECTATIONS. **IF YOU ARE UNCERTAIN WHETHER TO PURCHASE TOKENS IN LIGHT OF THESE DISCLAIMERS OR LEGAL NOTICES CONTAINED HEREIN, OR IF YOU ARE CONCERNED ABOUT THE LOSS OF ANY MONEY YOU USE TO PURCHASE THE TOKENS, WE STRONGLY URGE YOU NOT TO PURCHASE ANY HDAO TOKENS .** WE RECOMMEND YOU CONSULT LEGAL, FINANCIAL, TAX, AND OTHER PROFESSIONAL ADVISORS OR EXPERTS FOR FURTHER GUIDANCE BEFORE PURCHASING TOKENS. WE CANNOT PROVIDE YOU ANY OF THE FOREGOING ADVICE. ACCORDINGLY, YOU ARE STRONGLY ADVISED TO TAKE INDEPENDENT LEGAL ADVICE IN RESPECT OF THE LEGALITY IN YOUR JURISDICTION OF YOUR PURCHASE OF THE TOKENS. HDAO TOKENS ARE NOT SHARES OR SECURITIES OF ANY TYPE. THEY DO NOT GRANT YOU TO ANY KIND OF OWNERSHIP OR OTHER INTEREST. THE HDAO TOKENS EXIST TO FACILITATE YOUR USE OF THE HDAO NETWORK. THEY ARE NOT INVESTMENTS; THERE IS NO PROMISE THAT THEY WILL INCREASE IN VALUE; THEY ARE VALUABLE ONLY INSOFAR AS THEY ARE DESIGNED TO WORK WITHIN THE HDAO NETWORK. FOR MORE INFORMATION REGARDING [LEGAL NOTICES](/legal-notices) SECTION. # Legal Notices The information set forth in these Legal Notices (“Legal Notices”) may not be exhaustive and neither create a contract between you and HDAO. While we make every reasonable effort to ensure that all information: (i) in these Docs; (ii) available on the humanDAO website , (iii) available on its Twitter account (), (iv) its Discord Channel (), or (v) any other available information moderated by HDAO (collectively, the “Sites”) (all the information here and all information available on the Sites hereinafter referred to as the “Current Information”) is accurate and up to date, such material in no way constitutes professional advice. Individuals intending to purchase the HDAO token (each a “Token Purchase”) should seek independent professional advice prior to acting on any of the Current Information. **NO REPRESENTATION & WARRANTIES** Notwithstanding any other provision of these Legal Notices or any statement made expressly or impliedly in the Current Information, HDAO does not make or purport to make, and hereby disclaims, any representation warranty undertaking or covenant in any form whatsoever to any entity or person, including any representation warranty undertaking or covenant in relation to the truth, accuracy and completeness of any of the information set out in the Current Information. **REPRESENTATION & WARRANTIES BY YOU** By accessing the Current Information or engaging in a Token Purchase, you represent and warrant to HDAO: ● you are over 18 (eighteen) years of age; ● you agree, accept, and acknowledge that the Tokens do not constitute shares or equities or securities or financial instruments or investments in any form in any jurisdiction for any purpose; ● you agree and acknowledge that the Current Information does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities in any jurisdiction or a solicitation for investment in securities; ● you agree and acknowledge that no regulatory authority has examined or approved of the Current Information, and presently there is no plan for the Current Information to be so reviewed; ● the distribution or dissemination of the Current Information any part thereof or any copy thereof, or acceptance of the same by you, is not prohibited or restricted by the applicable laws, regulations or rules in your jurisdiction, and where any restrictions in relation to possession are applicable, you have observed and complied with all such restrictions at your own expense and without liability to HDAO; ● you will not make any representation to any person regarding the Tokens that conflict with these Legal Notices; ● you agree and acknowledge that in the case where you wish to purchase any Tokens, the Tokens are not to be construed, interpreted, classified or treated as: * debentures, stocks or shares issued by any person or entity (whether HDAO or otherwise); * rights, options or derivatives in respect of such debentures, stocks or shares; * rights under a contract for differences or under any other contract the purpose or\ pretended purpose of which is to secure a profit or avoid a loss; * units in a collective investment scheme; * units in a business trust; * derivatives of units in a business trust; * any other security or class of securities; or * any type of investment ● you are fully aware of and understand that you are not eligible to purchase any Tokens or access the Current Information if you are a citizen, national, resident (tax or otherwise) of an internationally sanctioned country. ● you have a basic degree of understanding of the operation, functionality, usage, storage, transmission mechanisms and other material characteristics of cryptocurrencies, blockchain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technology; ● you are fully aware and understand, there are risks associated with: (A) HDAO and its business and operations; (B) the Tokens; (C) the Token Purchase; (D) storage of the Tokens, and (E) relying or acting on all or any part of the Current Information; ● you agree and acknowledge that HDAO is not liable for any direct, indirect, special, incidental, consequential, or other losses of any kind in tort contract or otherwise (including but not limited to loss of revenue income or profits or loss of use or data or loss of reputation or loss of any economic or other opportunity of whatsoever nature or howsoever arising) arising out of or in connection with any acceptance of or reliance on the Current Information, Token Purchase, or any part thereof by you; and ● all of the above representations and warranties are true, complete, accurate and not misleading from the time of your last access to and/or possession of (as the case may be) the Current Information. \ **CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS**\ All statements contained in the Current Information, statements made in any press releases or in any place accessible by the public and oral statements that may be made by HDAO or HDAO representatives (as the case may be), that are not statements of historical fact, constitute “forward looking statements”. Some of these statements can be identified by forward-looking terms such as “aim”, “target”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “if”, “intend”, “may”, “plan”, “possible”, “probable”, “project”, “should”, “would”, “will” or other similar terms. However, these terms are not the exclusive means of identifying forward-looking statements. All statements regarding HDAO’s financial position, business strategies, plans and prospects and the future prospects of the industry which HDAO is in are forward-looking statements. These forward-looking statements, including but not limited to statements as to HDAO’s revenue profitability and growth, expected revenue profitability and growth, prospects, future plans, network plans, other expected industry trends and other matters discussed in the Current Information regarding HDAO are matters that are not historic facts, but only estimations and predictions. 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These factors include, amongst others: * changes in legal, political, social, economic, and stock or cryptocurrency market conditions and the regulatory environment in the countries in which HDAO conducts its business and/or its operations or where you engage in a Token Purchase; * the risk that HDAO may be unable or execute or implement its business strategies and future plans; * changes in interest rates and exchange rates of fiat currencies and cryptocurrencies; * changes in the anticipated growth strategies and expected internal growth of HDAO; * changes in the availability and fees payable to HDAO in connection with its business and operations; * changes in the availability and salaries of employees who are required by HDAO to operate its business and operations; * changes in preferences of customers of HDAO; * changes in competitive conditions under which HDAO operates, and the ability of HDAO to compete under such conditions; * changes in the future capital needs of HDAO and the availability of financing and capital to fund such needs; * war or acts of international or domestic terrorism; * occurrences of catastrophic events, natural disasters and acts of God that affect the businesses and/or operations of HDAO; * other factors beyond the control of HDAO; and * any risk and uncertainties associated with HDAO and its business and operations, the Tokens, the Token Purchase and reliance on all or any part of the Current Information. All forward-looking statements made by or attributable to HDAO or HDAO representatives are expressly qualified in their entirety by such factors. Given that risks and uncertainties that may cause the actual future results, performance or achievements of HDAO to be materially different from that expected, expressed or implied by the forward-looking statements in the Current Information, undue reliance must not be placed on these statements. These forward-looking statements are applicable only as of the later of the date of publication of these Docs and the latest date that the Sites have been updated. Neither HDAO nor HDAO representatives nor any other person represents, warrants and/or undertakes that the actual future results, performance or achievements of HDAO will be as discussed in those forward-looking statements. The actual results, performance or achievements of HDAO may differ materially from those anticipated in these forward-looking statements. Nothing contained in the Current Information is or may be relied upon as a promise, representation or undertaking as to the future performance or policies of HDAO. Further, HDAO disclaims any responsibility to update any of those forward-looking statements or publicly announce any revisions to those forward-looking statements to reflect future developments, events or circumstances, even if new information becomes available or other events occur in the future. # What is a DAO? # ethereum.org ### What are DAOs? A DAO is a collectively-owned, blockchain-governed organization working towards a shared mission. DAOs allow us to work with like-minded folks around the globe without trusting a benevolent leader to manage the funds or operations. There is no CEO who can spend funds on a whim or CFO who can manipulate the books. Instead, blockchain-based rules baked into the code define how the organization works and how funds are spent. They have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice, and everything happens transparently on-chain. ### Why do we need DAOs? Starting an organization with someone that involves funding and money requires a lot of trust in the people you're working with. But it’s hard to trust someone you’ve only ever interacted with on the internet. With DAOs you don’t need to trust anyone else in the group, just the DAO’s code, which is 100% transparent and verifiable by anyone. This opens up so many new opportunities for global collaboration and coordination. #### A comparison | DAO | A traditional organization | | ----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | | Usually flat, and fully democratized. | Usually hierarchical. | | Voting required by members for any changes to be implemented. | Depending on structure, changes can be demanded from a sole party, or voting may be offered. | | Votes tallied, and outcome implemented automatically without trusted intermediary. | If voting allowed, votes are tallied internally, and outcome of voting must be handled manually. | | Services offered are handled automatically in a decentralized manner (for example distribution of philanthropic funds). | Requires human handling, or centrally controlled automation, prone to manipulation. | | All activity is transparent and fully public. | Activity is typically private, and limited to the public. | #### DAO examples To help this make more sense, here's a few examples of how you could use a DAO: * A charity – you could accept donations from anyone in the world and vote on which causes to fund. * Collective ownership – you could purchase physical or digital assets and members can vote on how to use them. * Ventures and grants – you could create a venture fund that pools investment capital and votes on ventures to back. Repaid money could later be redistributed amongst DAO-members. ### How do DAOs work? The backbone of a DAO is its smart contract, which defines the rules of the organization and holds the group's treasury. Once the contract is live on Ethereum, no one can change the rules except by a vote. If anyone tries to do something that's not covered by the rules and logic in the code, it will fail. And because the treasury is defined by the smart contract too that means no one can spend the money without the group's approval either. This means that DAOs don't need a central authority. Instead, the group makes decisions collectively, and payments are automatically authorized when votes pass. This is possible because smart contracts are tamper-proof once they go live on Ethereum. You can't just edit the code (the DAOs rules) without people noticing because everything is public. ![📃](https://twemoji.maxcdn.com/2/svg/1f4c3.svg) ### Ethereum and DAOs Ethereum is the perfect foundation for DAOs for a number of reasons: * Ethereum’s own consensus is distributed and established enough for organizations to trust the network. * Smart contract code can’t be modified once live, even by its owners. This allows the DAO to run by the rules it was programmed with. * Smart contracts can send/receive funds. Without this you'd need a trusted intermediary to manage group funds. * The Ethereum community has proven to be more collaborative than competitive, allowing for best practices and support systems to emerge quickly. ### DAO governance There are many considerations when governing a DAO, such as how voting and proposals work. #### Delegation Delegation is like the DAO version of representative democracy. Token holders delegate votes to users who nominate themselves and commit to stewarding the protocol and staying informed. **A famous example** [ENS](https://claim.ens.domains/delegate-ranking) – ENS holders can delegate their votes to engaged community members to represent them. #### Automatic transaction governance In many DAOs, transactions will be automatically executed if a quorum of members votes affirmative. **A famous example** [Nouns](https://nouns.wtf/) – In Nouns DAO, a transaction is automatically executed if a quorum of votes is met and a majority votes affimrative, as long as it is not vetoed by the founders. #### Multisig governance While DAOs may have thousands of voting members, funds can live in a wallet shared by 5-20 active community members who are trusted and usually doxxed (public identities known to the community). After a vote, the multisig signers execute the will of the community. ### DAO laws In 1977, Wyoming invented the LLC, which protects entrepreneurs and limits their liability. More recently, they pioneered the DAO law that establishes legal status for DAOs. Currently Wyoming, Vermont, and the Virgin Islands have DAO laws in some form. **A famous example** [CityDAO](https://citydao.io/) – CityDAO used Wyoming's DAO law to buy 40 acres of land near Yellowstone National Park. ### DAO membership There are different models for DAO membership. Membership can determine how voting works and other key parts of the DAO. #### Token-based membership Usually fully permissionless, depending on the token used. Mostly these governance tokens can be traded permissionlessly on a decentralized exchange. Others must be earned through providing liquidity or some other ‘proof-of-work’. Either way, simply holding the token grants access to voting. *Typically used to govern broad decentralized protocols and/or tokens themselves.* **A famous example** [MakerDAO](https://makerdao.com/) – MakerDAO's token MKR is widely available on decentralized exchanges and anyone can buy into having voting power on Maker protocol's future. Share-based DAOs are more permissioned, but still quite open. Any prospective members can submit a proposal to join the DAO, usually offering a tribute of some value in the form of tokens or work. Shares represent direct voting power and ownership. Members can exit at any time with their proportionate share of the treasury. *Typically used for more closer-knit, human-centric organizations like charities, worker collectives, and investment clubs. Can also govern protocols and tokens as well.* [MolochDAO](http://molochdao.com/) – MolochDAO is focused on funding Ethereum projects. They require a proposal for membership so the group can assess whether you have the necessary expertise and capital to make informed judgments about potential grantees. You can't just buy access to the DAO on the open market. #### Reputation-based membership Reputation represents proof of participation and grants voting power in the DAO. Unlike token or share-based membership, reputation-based DAOs don't transfer ownership to contributors. Reputation cannot be bought, transferred or delegated; DAO members must earn reputation through participation. On-chain voting is permissionless and prospective members can freely submit proposals to join the DAO and request to receive reputation and tokens as a reward in exchange for their contributions. *Typically used for decentralized development and governance of protocols and dapps, but also well suited to a diverse set of organizations like charities, worker collectives, investment clubs, etc.* **A famous example** [DXdao](https://dxdao.eth.link/) – DXdao is a global sovereign collective building and governing decentralized protocols and applications since 2019. It leverages reputation-based governance and holographic consensus to coordinate and manage funds, meaning no one can buy their way into influencing its future. ### Join / start a DAO #### Join a DAO * Ethereum community DAOs * [DAOHaus's list of DAOs](https://app.daohaus.club/explore) #### Start a DAO * [Summon a DAO with DAOHaus](https://app.daohaus.club/summon) * [Create an Aragon-powered DAO](https://aragon.org/product) * [Start a colony](https://colony.io/) * [Create a DAO with DAOstack's holographic consensus](https://alchemy.daostack.io/daos/create) ### Further reading #### DAO Articles * [What's a DAO?](https://aragon.org/dao) – [Aragon](https://aragon.org/) * [The DAO Handbook](https://daohandbook.xyz/) * [House of DAOs](https://wiki.metagame.wtf/docs/great-houses/house-of-daos) – [Metagame](https://wiki.metagame.wtf/) * [What is a DAO and what is it for?](https://daohaus.substack.com/p/-what-is-a-dao-and-what-is-it-for) – [DAOhaus](https://daohaus.club/) * [How to Start a DAO-Powered Digital Community](https://daohaus.substack.com/p/four-and-a-half-steps-to-start-a) – [DAOhaus](https://daohaus.club/) * [What is a DAO?](https://coinmarketcap.com/alexandria/article/what-is-a-dao) – [Coinmarketcap](https://coinmarketcap.com/) * [What is Holographic Consensus?](https://medium.com/daostack/holographic-consensus-part-1-116a73ba1e1c) - [DAOstack](https://daostack.io/) * [DAOs are not corporations: where decentralization in autonomous organizations matters by Vitalik](https://vitalik.ca/general/2022/09/20/daos.html) * [DAOs, DACs, DAs and More: An Incomplete Terminology Guide](https://blog.ethereum.org/2014/05/06/daos-dacs-das-and-more-an-incomplete-terminology-guide) - [Ethereum Blog](https://blog.ethereum.org/) #### Videos * [What is a DAO in crypto?](https://youtu.be/KHm0uUPqmVE) * [Can a DAO Build a City?](https://www.ted.com/talks/scott_fitsimones_could_a_dao_build_the_next_great_city) – [TED](https://www.ted.com/) #### Was this page helpful? # What is an NFT? # ethereum.org NFTs are currently taking the digital art and collectibles world by storm. Digital artists are seeing their lives change thanks to huge sales to a new crypto-audience. And celebrities are joining in as they spot a new opportunity to connect with fans. But digital art is only one way to use NFTs. Really they can be used to represent ownership of any unique asset, like a deed for an item in the digital or physical realm. If Andy Warhol had been born in the late 90s, he probably would have minted Campbell's Soup as an NFT. It's only a matter of time before Kanye puts a run of Yeezys on Ethereum. And one day owning your car might be proved with an NFT. ### What's an NFT? NFTs are tokens that we can use to represent ownership of unique items. They let us tokenize things like art, collectibles, even real estate. Ownership of an asset is secured by the Ethereum blockchain – no one can modify the record of ownership or copy/paste a new NFT into existence. NFT stands for non-fungible token. Non-fungible is an economic term that you could use to describe things like your furniture, a song file, or your computer. These things are not interchangeable for other items because they have unique properties. Fungible items, on the other hand, can be exchanged because their value defines them rather than their unique properties. For example, ETH or dollars are fungible because 1 ETH / $1 USD is exchangeable for another 1 ETH / $1 USD. ### The internet of assets NFTs and Ethereum solve some of the problems that exist in the internet today. As everything becomes more digital, there's a need to replicate the properties of physical items like scarcity, uniqueness, and proof of ownership. Not to mention that digital items often only work in the context of their product. For example you can't re-sell an iTunes mp3 you've purchased, or you can't exchange one company's loyalty points for another platform's credit even if there's a market for it. Here's how an internet of NFTs compared to the internet most of us use today looks... #### A comparison | An NFT internet | The internet today | | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | NFTs are digitally unique, no two NFTs are the same. | A copy of a file, like an .mp3 or .jpg, is the same as the original. | | Every NFT must have an owner and this is of public record and easy for anyone to verify. | Ownership records of digital items are stored on servers controlled by institutions – you must take their word for it. | | NFTs are compatible with anything built using Ethereum. An NFT ticket for an event can be traded on every Ethereum marketplace, for an entirely different NFT. You could trade a piece of art for a ticket! | Companies with digital items must build their own infrastructure. For example an app that issues digital tickets for events would have to build their own ticket exchange. | | Content creators can sell their work anywhere and can access a global market. | Creators rely on the infrastructure and distribution of the platforms they use. These are often subject to terms of use and geographical restrictions. | | Creators can retain ownership rights over their own work, and claim resale royalties directly. | Platforms, such as music streaming services, retain the majority of profits from sales. | | Items can be used in surprising ways. For example, you can use digital artwork as collateral in a decentralised loan. | | #### NFT examples The NFT world is relatively new. In theory, the scope for NFTs is anything that is unique that needs provable ownership. Here are some examples of NFTs that exist today, to help you get the idea: * [A unique digital artwork](https://foundation.app/artworks) * [A unique sneaker in a limited-run fashion line](https://www.metagrail.co/auctions/91cf83fb-3477-4155-aae8-6dcb9b853397) * [An in-game item](https://market.decentraland.org/) * [An essay](https://zora.co/0x517bab7661C315C63C6465EEd1b4248e6f7FE183/145) * [A digital collectible](https://www.larvalabs.com/cryptopunks/details/1) * [A domain name](https://app.ens.domains/name/ethereum.eth) * [A ticket that gives you access to an event or a coupon](https://www.yellowheart.io/) * [Buy real world goods](https://www.tangible.store/) * [Fractionalized real-estate](https://realt.co/) * [Degree Certificates](https://www.degreecert.com/) * [Music royalties via NFTs](https://opulous.org/) * [Move 2 earn](https://yeticoineth.com/about.html) * [Digital identity](https://photochromic.io/) #### ethereum.org examples We use NFTs to give back to our contributors and we've even got our own NFT domain name. **POAPs (Proof of attendance protocol)** If you contribute to ethereum.org, you can claim a POAP NFT. These are collectibles that prove you participated in an event. Some crypto meetups have used POAPs as a form of ticket to their events. More on contributing. ![ethereum.org POAP](https://d33wubrfki0l68.cloudfront.net/d7589ec68f11f201a68d1709dd9b2388497b3529/34843/static/aee7aca97ad8405722868827513c9937/c1b63/poap.png) **ethereum.eth** This website has an alternative domain name powered by NFTs, **ethereum.eth**. Our `.org` address is centrally managed by a domain name system (DNS) provider, whereas ethereum`.eth` is registered on Ethereum via the Ethereum Name Service (ENS). And its owned and managed by us. [Check our ENS record](https://app.ens.domains/name/ethereum.eth) [More on ENS](https://app.ens.domains/) ### How do NFTs work? NFTs are different from ERC-20 tokens, such as DAI or LINK, in that each individual token is completely unique and is not divisible. NFTs give the ability to assign or claim ownership of any unique piece of digital data, trackable by using Ethereum's blockchain as a public ledger. An NFT is minted from digital objects as a representation of digital or non-digital assets. For example, an NFT could represent: * Digital Art: * GIFs * Collectibles * Music * Videos * Real World Items: * Deeds to a car * Tickets to a real world event * Tokenized invoices * Legal documents * Signatures * Lots and lots more options to get creative with! Ownership of NFTs is managed through the unique ID and metadata that no other token can replicate. NFTs are minted through smart contracts that assign ownership and manage the transferability of the NFT's. When someone creates or mints an NFT, they execute code stored in smart contracts that conform to different standards, such as ERC-721. This information is added to the blockchain where the NFT is being managed. The minting process, from a high level, has the following steps that it goes through: * Creating a new block * Validating information * Recording information into the blockchain NFT's have some special properties: * Each token minted has a unique identifier that is directly linked to one Ethereum address. * They're not directly interchangeable with other tokens 1:1. For example 1 ETH is exactly the same as another ETH. This isn't the case with NFTs. * Each token has an owner and this information is easily verifiable. * They live on Ethereum and can be bought and sold on any Ethereum-based NFT market. In other words, if you *own* an NFT: * You can easily prove you own it. * Proving you own an NFT is very similar to proving you have ETH in your account. * For example, let's say you purchase an NFT, and the ownership of the unique token is transferred to your wallet via your public address. * The token proves that your copy of the digital file is the original. * Your private key is proof-of-ownership of the original. * The content creator's public key serves as a certificate of authenticity for that particular digital artefact. * The creators public key is essentially a permanent part of the token's history. The creator's public key can demonstrate that the token you hold was created by a particular individual, thus contributing to its market value (vs a counterfeit). * Another way to think about proving you own the NFT is by signing messages to prove you own the private key behind the address. * As mentioned above, your private key is proof-of-ownership of the original. This tells us that the private keys behind that address control the NFT. * A signed message can be used as proof that you own your private keys without revealing them to anybody and thus proving you own the NFT as well! * No one can manipulate it in any way. * You can sell it, and in some cases this will earn the original creator resale royalties. * Or, you can hold it forever, resting comfortably knowing your asset is secured by your wallet on Ethereum. And if you *create* an NFT: * You can easily prove you're the creator. * You determine the scarcity. * You can earn royalties every time it's sold. * You can sell it on any NFT market or peer-to-peer. You're not locked in to any platform and you don't need anyone to intermediate. #### Scarcity The creator of an NFT gets to decide the scarcity of their asset. For example, consider a ticket to a sporting event. Just as an organizer of an event can choose how many tickets to sell, the creator of an NFT can decide how many replicas exist. Sometimes these are exact replicas, such as 5000 General Admission tickets. Sometimes several are minted that are very similar, but each slightly different, such as a ticket with an assigned seat. In another case, the creator may want to create an NFT where only one is minted as a special rare collectible. In these cases, each NFT would still have a unique identifier (like a bar code on a traditional "ticket"), with only one owner. The intended scarcity of the NFT matters, and is up to the creator. A creator may intend to make each NFT completely unique to create scarcity, or have reasons to produce several thousand replicas. Remember, this information is all public. #### Royalties Some NFTs will automatically pay out royalties to their creators when they're sold. This is still a developing concept but it's one of the most powerful. Original owners of [EulerBeats Originals](https://eulerbeats.com/) earn an 8% royalty every time the NFT is sold on. And some platforms, like [Foundation](https://foundation.app/) and [Zora](https://zora.co/), support royalties for their artists. This is completely automatic so creators can just sit back and earn royalties as their work is sold from person to person. At the moment, figuring out royalties is very manual and lacks accuracy – a lot of creators don't get paid what they deserve. If your NFT has a royalty programmed into it, you'll never miss out. ### What are NFTs used for? Here's more information of some of the better developed use-cases and visions for NFTs on Ethereum. * Digital content * Gaming items * Domain names * Physical items * Investments and collateral #### Maximising earnings for creators The biggest use of NFTs today is in the digital content realm. That's because that industry today is broken. Content creators see their profits and earning potential swallowed by platforms. An artist publishing work on a social network makes money for the platform who sell ads to the artists followers. They get exposure in return, but exposure doesn't pay the bills. NFTs power a new creator economy where creators don't hand ownership of their content over to the platforms they use to publicise it. Ownership is baked into the content itself. When they sell their content, funds go directly to them. If the new owner then sells the NFT, the original creator can even automatically receive royalties. This is guaranteed every time it's sold because the creator's address is part of the token's metadata – metadata which can't be modified. ![👀](https://twemoji.maxcdn.com/2/svg/1f440.svg) **The copy/paste problem** Naysayers often bring up the fact that NFTs "are dumb" usually alongside a picture of them screenshotting an NFT artwork. "Look, now I have that image for free!" they say smugly. Well, yes. But does googling an image of Picasso's Guernica make you the proud new owner of a multi-million dollar piece of art history? Ultimately owning the real thing is as valuable as the market makes it. The more a piece of content is screen-grabbed, shared, and generally used the more value it gains. Owning the verifiably real thing will always have more value than not. #### Boosting gaming potential NFTs have seen a lot of interest from game developers. NFTs can provide records of ownership for in-game items, fuel in-game economies, and bring a host of benefits to the players. In a lot of regular games you can buy items for you to use in your game. But if that item was an NFT you could recoup your money by selling it on when you're done with the game. You might even make a profit if that item becomes more desirable. For game developers – as issuers of the NFT – they could earn a royalty every time an item is re-sold in the open marketplace. This creates a more mutually-beneficial business model where both players and developers earn from the secondary NFT market. This also means that if a game is no longer maintained by the developers, the items you've collected remain yours. Ultimately the items you grind for in-game can outlive the games themselves. Even if a game is no longer maintained, your items will always be under your control. This means in-game items become digital memorabilia and have a value outside of the game. Decentraland, a virtual reality game, even lets you buy NFTs representing virtual parcels of land that you can use as you see fit. ![👀](https://twemoji.maxcdn.com/2/svg/1f440.svg) #### Making Ethereum addresses more memorable The Ethereum Name Service uses NFTs to provide your Ethereum address with an easier-to-remember name like `mywallet.eth`. This means you could ask someone to send you ETH via `mywallet.eth` rather than `0x123456789.....`. This works in a similar way to a website domain name which makes an IP address more memorable. And like domains, ENS names have value, usually based on length and relevance. With ENS you don't need a domain registry to facilitate the transfer of ownership. Instead, you can trade your ENS names on an NFT marketplace. Your ENS name can: * Receive cryptocurrency and other NFTs. * Point to a decentralized website, like [ethereum.eth](https://ethereum.eth.link/). [More on decentralizing your website](https://docs.ipfs.io/how-to/websites-on-ipfs/link-a-domain/#domain-name-service-dns) * Store any arbitrary information, including profile information like email addresses and Twitter handles. #### Physical items The tokenisation of physical items isn't yet as developed as their digital counterparts. But there are plenty of projects exploring the tokenisation of real estate, one-of-a-kind fashion items, and more. As NFTs are essentially deeds, one day you could buy a car or home using ETH and receive the deed as an NFT in return (in the same transaction). As things become increasingly high-tech, it's not hard to imagine a world where your Ethereum wallet becomes the key to your car or home – your door being unlocked by the cryptographic proof of ownership. With valuable assets like cars and property representable on Ethereum, you can use NFTs as collateral in decentralized loans. This is particularly helpful if you're not cash or crypto-rich but own physical items of value. More on DeFi #### NFTs and DeFi The NFT world and the decentralized finance (DeFi) world are starting to work together in a number of interesting ways. **NFT-backed loans** There are DeFi applications that let you borrow money by using collateral. For example you collateralise 10 ETH so you can borrow 5000 DAI (a stablecoin). This guarantees that the lender gets paid back – if the borrower doesn't pay back the DAI, the collateral is sent to the lender. However not everyone has enough crypto to use as collateral. Projects are beginning to explore using NFTs as collateral instead. Imagine you bought a rare CryptoPunk NFT back in the day – they can fetch $1000s at today's prices. By putting this up as collateral, you can access a loan with the same rule set. If you don't pay back the DAI, your CryptoPunk will be sent to the lender as collateral. This could eventually work with anything you tokenise as an NFT. And this isn't hard on Ethereum, because both worlds (NFT and DeFi) share the same infrastructure. **Fractional ownership** NFT creators can also create "shares" for their NFT. This gives investors and fans the opportunity to own a part of an NFT without having to buy the whole thing. This adds even more opportunities for NFT minters and collectors alike. * Fractionalised NFTs can be traded on DEXs like Uniswap, not just NFT marketplaces. That means more buyers and sellers. * An NFT's overall price can be defined by the price of its fractions. * You have more of an opportunity to own and profit from items you care about. It's harder to be priced out of owning NFTs. This is still experimental but you can learn more about fractional NFT ownership at the following exchanges: * [NIFTEX](https://landing.niftex.com/) * [NFTX](https://gallery.nftx.org/) In theory, this would unlock the possibility to do things like own a piece of a Picasso. You would become a shareholder in a Picasso NFT, meaning you would have a say in things like revenue sharing. It's very likely that one day soon owning a fraction of an NFT will enter you into a decentralised autonomous organisation (DAO) for managing that asset. These are Ethereum-powered organisations that allow strangers, like global shareholders of an asset, to coordinate securely without necessarily having to trust the other people. That's because not a single penny can be spent without group approval. As we mentioned, this is an emerging space. NFTs, DAOs, fractionalised tokens are all developing at different paces. But all their infrastructure exists and can work together easily because they all speak the same language: Ethereum. So watch this space. More on DAOs #### Certificates of authenticity Companies offering fake certificates for university degrees are reportedly a billion-dollar industry that NFTs can help combat. NFTs can be a secure and quick way to verify someone's degree credentials. [In South Korea, one university is already issuing degree certificates as an NFT](https://forkast.news/headlines/south-korea-nfts-graduates-hoseo/), with the hope that NFTs will improve access to administrative services and prevent forgery or alteration of the degree. [Trinity Business School (TBS) in Ireland is also planning on offering NFTs from 2023](https://trinitynews.ie/2022/04/business-school-to-offer-degree-nfts/). ### Ethereum and NFTs Ethereum makes it possible for NFTs to work for a number of reasons: * Transaction history and token metadata is publicly verifiable – it's simple to prove ownership history. * Once a transaction is confirmed, it's nearly impossible to manipulate that data to "steal" ownership. * Trading NFTs can happen peer-to-peer without needing platforms that can take large cuts as compensation. * All Ethereum products share the same "backend". Put another way, all Ethereum products can easily understand each other – this makes NFTs portable across products. You can buy an NFT on one product and sell it on another easily. As a creator you can list your NFTs on multiple products at the same time – every product will have the most up-to-date ownership information. * Ethereum never goes down, meaning your tokens will always be available to sell. ### The environmental impact of NFTs NFTs are growing in popularity which means they're also coming under increased scrutiny – especially over their carbon footprint. To clarify a few things: * Creating and transferring NFTs are just Ethereum transactions - they have no direct impact on the energy expended by Ethereum, nor do they independently expend their own energy. * Ethereum is a low-energy blockchain, meaning the environmental impact of creating, buying and transferring NFTs is very small. The next sections explain further with a little more technical detail... #### Don't blame it on the NFTs The whole NFT ecosystem works because Ethereum is decentralized and secure. Decentralized meaning you and everyone else can verify you own something. All without trusting or granting custody to a third party who can impose their own rules at will. It also means your NFT is portable across many different products and markets. Secure meaning no one can copy/paste your NFT or steal it. These qualities of Ethereum makes digitally owning unique items and getting a fair price for your content possible. Ethereum protects the assets using a decentralized consensus mechanism which involves 'proof-of-stake'. This is a low carbon method to determine who can add a block of transactions to the chain, and is considered more secure than the energy-intensive alternative, 'proof-of-work'. NFTs have been associated with high energy expenditure because Ethereum used to be secured using proof-of-work. This is no longer true. **Minting NFTs** When you mint an NFT, a few things have to happen: * It needs to be confirmed as an asset on the blockchain. * The owner's account balance must be updated to include that asset. This makes it possible for it to then be traded or verifiably "owned". * The transactions that confirm the above need to be added to a block and "immortalized" on the chain. * The block needs to be confirmed by everyone in the network as "correct". This consensus removes the need for intermediaries because the network agrees that your NFT exists and belongs to you. And it's on chain so anyone can check it. This is one of the ways Ethereum helps NFT creators to maximize their earnings. All these tasks are done by block producers and validators. Block proposers add your NFT transaction to a block and broadcast it to the rest of the network. Validators check that the transaction is valid and then add it to their databases. There are lots of crypto-economic incentives in place to make sure validators are acting honestly. Otherwise, anyone could just claim that they own the NFT you just minted and fraudulently transfer ownership. **NFT security** Ethereum's security comes from proof-of-stake. The system is designed to economically disincentivize malicious actions, making Ethereum tamper-proof. This is what makes NFTs possible. Once the block containing your NFT transaction becomes finalized it would cost an attacker millions of ETH to change it. Anyone running Ethereum software would immediately be able to detect dishonest tampering with an NFT, and the bad actor would be economically penalized and ejected. Security issues relating to NFTs are most often related to phishing scams, smart contract vulnerabilities or user errors (such as inadvertently exposing private keys), making good wallet security critical for NFT owners. More on security ### Build with NFTs Most NFTs are built using a consistent standard known as ERC-721. However there are other standards that you might want to look into. The [ERC-1155](https://blog.enjincoin.io/erc-1155-the-crypto-item-standard-ac9cf1c5a226) standard allows for semi-fungible tokens which is particularly useful in the realm of gaming. And more recently, [EIP-2309](https://eips.ethereum.org/EIPS/eip-2309) has been proposed to make minting NFTs a lot more efficient. This standard lets you mint as many as you like in one transaction! ### Further reading * [Crypto art data](https://cryptoart.io/data) – Richard Chen, updated automatically * [OpenSea: the NFT Bible](https://opensea.io/blog/guides/non-fungible-tokens/) – *Devin Fizner, January 10 2020* * [A beginner's guide to NFTs](https://linda.mirror.xyz/df649d61efb92c910464a4e74ae213c4cab150b9cbcc4b7fb6090fc77881a95d) – *Linda Xie, January 2020* * [Everything you need to know about the metaverse](https://foundation.app/blog/enter-the-metaverse) – *Foundation team, foundation.app* * [No, CryptoArtists Aren’t Harming the Planet](https://medium.com/superrare/no-cryptoartists-arent-harming-the-planet-43182f72fc61) * Ethereum's energy consumption * [A country's worth of power, no more](https://blog.ethereum.org/2021/05/18/country-power-no-more/) – *Carl Beekhuizen, May 18 2021* #### Was this page helpful?