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OpenDAO and $SOS Token: Why Twitter is Going Crazy Over This Project

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Avatar for wholelottajuju
Written by   10
4 months ago

Merry Christmas to all my readers! Today, like any other day, I woke up, made myself a fresh pot of coffee, and went on Twitter to check what was going on in the NFT world. Did the Alien Frens floor push up yet again? Is Coolman Universe still on its trajectory to parabolic gains?

Yes, and yes! With @garyvee joining in on the fun, even more recognition has been set out to the "cutsie" PFP NFT community.

But these aren't the only headlines that have been disrupting Twitter all morning.

OpenDao's $SOS token has been rewarding the NFT community in ways that other platforms have yet to do.

Let's get into the project and the hype behind it.

What is OpenDAO and The $SOS Token?

OpenDAO is the Decentralized Autonomous Organization behind the $SOS airdrop. Simply put, OpenDAO is a group of like-minded individuals with its inception traced back to open-source code. DAOs function without the traditional hierarchy seen throughout international economies. The DAOs' managing rules are embedded into their code, thus eliminating the need for management.

The goal of DAOs is to become a vehicle for investors to send money anywhere around the world, while providing them with rewards for their participation in the ecosystem.

You could compare DAOs to Venture Capital funds (VCs) as they provide investment opportunities and funding for individuals and projects. Bitcoin was an example of a DAO, though the Proof of Work (PoW) consensus mechanism has been proven to establish hierarchy and thus control over to those with the most potent hardware on the market.

Initially, OpenDAO is fulfilling the notion of DAOs. As you can see in the Twitter post above, OpenDAO will only have a fair airdrop for anyone who has used OpenSea since day 1. Say goodbye to pre-sales and public sales!

OpenDAO isn't run by a VC or LP either. Since the contributors of the project are volunteers like @9x9x9eth, an influencer in the NFT space who created 721DAO, a DAO with a vision to create a decentralized entertainment metaverse, there is no sort of monetary incentives from the "managing" team.

So What's OpenDAO's Goal?

Taken from its Twitter page:

$SOS is grateful to all NFT creators, collectors and markets for nurturing the entire NFT ecosystem. The token to pay tribute, to protect, to promote...

Ok, cool... but what does this mean? How will they pay tribute to the NFT community?

First, take a look at this pie chart to wrap your head around OpenDAO's goal with its token:

Currently, OpenDAO is airdropping $SOS tokens to those who have conducted transactions through OpenSea. To be exact, 50% of the 100 trillion supply with be airdropped!

Not all airdrops will be the same, though. The amount given to individuals depends on the total number of transactions + transaction volume on OpenSea. Therefore, those who have fulfilled hundreds of transactions with big-ticket NFT items will receive more $SOS tokens than newbies with only a couple of transactions in the >1 ETH range.

Nice! What's going to happen with the other 50% of the distribution?

For one, 20% of the token distribution will be allocated towards the DAO treasury. OpenDAO pledges to use the liquidity to compensate scam victims on OpenSea, support emerging artists and NFT communities, and provide funding for those using $SOS for their projects.

Another 20% will go towards staking! Who doesn't love to earn passive income through crypto? Yield farmers galore.

The last 10% will be used for LP (Liquidity Pool) incentives.

Questions and Concerns

This is a new, one-of-a-kind project that hasn't been tested before. There is still confusion circulating in the community: Is it legit? Is it listed on major exchanges? Does OpenSea support the movement? Will there be a burn mechanism since it has such a high supply? What are its prospects?

Is it Legit?

Thankfully, the project is legit. I mean I wouldn't want to ruin the start of my blogging career by writing about scams 😂. @nftllama.eth, a prominent figure in the sphere said this about $SOS:

Here are the links to check for yourself:

And well, almost all influencers have received their airdropped $SOS. And they're holding too!

Is it Listed on Major Exchanges?

Yup. It's listed on CoinBase, KuCoin, UniSwap, Sushiswap, Huobi. The more, the merrier!

Does OpenSea Support OpenDAO?

Unfortunately, OS had this to say about OpenDAO:

Link to the Tweet

In the replies, you can see that the NFT community is enraged over OS' lack of involvement for a project built by the community, for the community. We are still waiting for Coinbase to step up and drop their own NFT marketplace 🤞.

Will There be a Burn Mechanism?

This is probably one of the most asked questions about the project besides "Is it legit?" in the Twitterverse.

At the moment, nothing has been established. My best guess is that there will be a roadmap proposal to see how holders would want the token to work. Some say that OS competitors could burn 2.5% in $SOS for fees, thus creating a deflationary supply, instead of following the status quo.

A decreasing supply = higher demand = higher price per token.

This would be a step further into the succession of Web 2.0. A DAO'd NFT marketplace.

The Future of $SOS

The first OpenDAO improvement proposal occurred within the last couple of hours. Holders had the chance to vote for their preferred staking schedule, resulting in 64.36% of holders voting for a 1-year staking lock-up. I can almost guarantee that the APR will be incredibly high with such a long term.

Aside from this, there isn't must else we know about the future of OpenDAO. It is changing the game and revolutionizing the NFT world. Let's hope it continues to remain decentralized at its core.

If you would like to claim your $SOS tokens, click here.

Sources:

https://www.altcoinbuzz.io/nft/what-is-opendao-and-sos/

https://www.theopendao.com/

I am not a financial advisor. Please do your own due diligence before making a decision based on my article, as I am not responsible or liable for your investment decisions.

Originally posted on LeoFinance.

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Avatar for wholelottajuju
Written by   10
4 months ago
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Comments

I’m very interested to follow the evolution of Airdrops and DAOs. I hadn’t thought much about the implications of third parties being able to reward users based on finding them on the open blockchain. If this practice becomes standard, that’s certainly a major incentive to be active in different communities. Thanks for your explanation about what today’s hype was all about.

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User's avatar oyl
4 months ago

I believe it will become mainstream in the NFT community at first, then expand to other aspects of the cryptoverse, especially if Metamask pursues this avenue as well. Usage-based community airdrops is a win-win for both the project and community members.

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4 months ago