Review OpenDAO($SOS) – How does it work?
On Christmas Eve, anyone who had ever spent money on OpenSea could claim a free Ethereum token called Token Of OpenDAO($SOS), and the amount of $SOS they’d get was determined by how much money they had spent on NFTs on OpenSea.
The tokens were not dropped by the popular NFT marketplace itself, but by OpenDAO, an independent decentralized autonomous organization that pledges to use some of the tokens it earmarked for itself to compensate OpenSea users for scams, and support the burgeoning NFT industry.
Although the crypto space is saturated with airdrops and meme tokens, the drop for $SOS blew up. On Christmas Day, it was the largest gainer on CoinMarketCap, with its price rising faster than even the sketchiest shitcoin.
What is OpenDAO ($SOS)
According to the OpenDAO website, this is a project built to issue tokens to reward the NFT community and those who have been with the field since the early days. Therefore, OpenDAO will airdrop the project’s token, named $SOS, to people who already use OpenSea – the world’s largest NFT marketplace platform.
OpenDAO is a community-driven meme project that further aims to be a currency for Opensea although it is not official at the moment.
Currently, OpenDAO’s $SOS token is airdropping for the community, specifically for users on Opensea, this airdrop is like a thank you as well as promoting NFT transactions on Marketplace.
Touting itself as “the token for the largest NFT community; to pay tribute, to protect, to promote,” OpenDAO ($SOS) is currently trending in many crypto cycles. The new project was launched on Friday, making its debut into the scene with a token drop for NFT collectors. Within 24 hours, its Twitter followers grew to over 61,000 and the number of $SOS holders had surpassed 130,000 as of press time.
The project is on a mission to reward all those that have contributed to the growth of the NFT sector, particularly, users of the leading NFT marketplace OpenSea. Apparently, all an NFT collector needs to do is to connect their wallets to the project’s website and then claim their free airdrops.
OpenDAO has allocated 50 percent of its $SOS tokens to all addresses that have traded on OpenSea since its inception. The distribution is calculated based on the number of transactions on OpenSea, as well as the amount of money spent on the NFT marketplace. And while the number of transactions carries a 30 percent weight, the amount spent via ETH, DAI, or USDC weighs 70 percent. As a result, some of the most active collectors on OpenSea have received the largest payouts from the airdrop.
Speaking of the team behind the DAO, Twitter user 9x9x9eth is the figurehead of the project. According to him, there is no private or public sale for the tokens, no venture capitalists, founders, or team members. The project is being run for free by a team of contributors.
What makes OpenDAO unique?
Rewards NFT collectors
It is almost impossible to talk about OpenDAO’s unique approach without mentioning OpenSea’s recent IPO saga. The leading marketplace for digital collectibles recently welcomed a new chief financial officer in the person of Brian Roberts. The new executive reportedly told Bloomberg that he was mulling over taking the company public, a move that was heavily criticized by the NFT community. Roberts earlier said:
“When you have a company growing as fast as this one, you’d be foolish not to think about it going public. It would be well-received in the public market given its growth.”
Users of OpenSea had long hoped that the company would launch a community token and airdrop it to users, a common practice in the DeFi world. Although Roberts later clarified that the company “would look to involve the community,” many customers were already left disappointed.
That being said, OpenDAO appears to be the knight in shining armor amid the recent developments surrounding OpenSea. Guy.eth, a notable personality in the crypto space, tweeted:
“Shoutout to OpenDAO rewarding the NFT community in a way Opensea wouldn’t.”
In a follow-up tweet, he lauded the decentralized nature of Web3, stating that “if the community doesn’t like the status quo, they can develop another solution. Fork the code and build something more inclusive.”
In addition to the 50 percent airdrop to OpenSea users, OpenDAO has earmarked an extra 20 percent to support the NFT ecosystem. Verified scam victims on OpenSea will be compensated with $SOS. The funds will also be used to provide developer grants for the $SOS ecosystem, as well as support NFT communities and emerging artists.
OpenDAO claims to be using 20% of the total $SOS allocation to continue promoting the growth of the NFT array
- Token name: OpenDAO
- Ticker: SOS
- Blockchain: Ethereum
- Token Standard: ERC20
- Contract: 0x3b484b82567a09e2588a13d54d032153f0c0aee0
- Token Type: Utility Token
- Total Supply: 100,000,000,000,000
- Circulating supply: Updating…
The total supply of 100,000,000,000,000 $SOS is allocated as follows:
- 50% of the tokens will be airdropped to those who have traded on OpenSea according to a default formula so it is quite fair).
- 20% of the tokens will be used to support the NFT market.
- Compensation for victims of fraud on OpenSea (Verified by OpenSea).
- Support emerging artists and their work.
- Support the NFT community.
- Support art conservation.
- A developer grant to participate in the OpenSea ecosystem.
- 20% as a staking reward.
- 10% as a reward for liquidity providers.
Token release Schedule
Token Use Case
- Victims of OpenSea frauds are entitled to compensation.
- Encourage the development of new NFT artists.
- NFT communities should be supported.
- Contribute to art conservation efforts.
- For the SOS ecosystem, create sponsorship packages.
Why do we need DAOs?
Being internet-native organizations, DAOs have several advantages over traditional organizations. One significant advantage of DAOs is the lack of trust needed between two parties. While a traditional organization requires a lot of trust in the people behind it — especially on behalf of investors — with DAOs, only the code needs to be trusted.
Trusting that code is easier to do as it’s publicly available and can be extensively tested before launch. Every action a DAO takes after being launched has to be approved by the community and is completely transparent and verifiable.
Such an organization has no hierarchical structure. Yet, it can still accomplish tasks and grow while being controlled by stakeholders via its native token. The lack of a hierarchy means any stakeholder can put forward an innovative idea that the entire group will consider and improve upon. Internal disputes are often easily solved through the voting system, in line with the pre-written rules in the smart contract.
By allowing investors to pool funds, DAOs also give them a chance to invest in early-stage startups and decentralized projects while sharing the risk or any profits that may come out of them.
Market and community
- Market Rank: #282
- Market Cap: $$259,151,405
- Fully Diluted Market Cap: $$667,548,846
- Trading Volume: $256,030,813
OpenDAO has crossed the mark of 128,000 Followers on Twitter.
Conclusion and analysis
On its website, OpenDAO describes $SOS as “the token for the largest NFT community, to pay tribute, to protect, to promote.” Interestingly, it says that a 20% allocation of the supply will go toward supporting the community through compensating OpenSea scam victims, supporting emerging artists, NFT communities, and art preservation, and organizing a developer grant for the $SOS ecosystem. While it’s unclear whether OpenDAO will make a lasting impact on the NFT space, for now, it’s generated a significant amount of buzz thanks to its token giveaway.
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