Decentralized autonomous organizations – DAOs – are one of the most exciting concepts that have been borne out of the cryptocurrency market. These organizations are not controlled by a centralized authority and are instead governed by community members – allowing investors to have a say in the project’s direction.

This article will discuss several of the best DAO crypto projects in operation right now before highlighting how these projects work and why investors are often interested to get involved with them.

The Best Crypto DAO Projects for 2022

Listed below are ten of the best DAO crypto projects this year, derived through extensive research and analysis. Later in this article, we’ll explore each of these projects in great detail:

  1. Lucky Block (LBLOCK)Overall Best Crypto DAO Project for 2022
  2. Uniswap (UNI)Leading DeFi Protocol With Over $5.5 billion in TVL
  3. Compound (COMP)Popular Crypto Lending DAO Trading at a Discount
  4. Aave (AAVE) – One of the Best DAO Crypto Projects for Long-Term Potential
  5. DeFi Coin (DEFC) – New DAO Project with Passive Income Potential
  6. Curve (CRV) – Ethereum-based DeFi Protocol for Stablecoins
  7. ApeCoin (APE) – Best ‘Meme Coin’ DAO
  8. Illuvium (ILV) – Upcoming NFT Gaming Project with DAO Governance
  9. Dash (DASH) – Innovative ‘Privacy Coin’ Set for a Rebound
  10. SushiSwap (SUSHI) – Beginner-Friendly DEX Set to Transition to a DAO

Cryptoassets are a highly volatile unregulated investment product. 

A Closer Look at the Top Crypto DAO Projects

Many of the most undervalued cryptos fall into the category of DAO projects, as these entities are still not fully understood by a large percentage of investors. With that in mind, let’s dive in and explore the crypto DAO entities listed above:

1. Lucky Block (LBLOCK) – Overall Best Crypto DAO Project for 2022

lucky block logoLeading the way when it comes to the best crypto DAO projects is Lucky Block. Lucky Block has garnered a reputation as one of the most exciting cryptos this year since the platform offers a unique take on crypto gaming. With the Lucky Block platform, users can enter lucrative daily prize draws for the chance to win jackpots that can reach millions of dollars.

Lucky Block is built on the Binance Smart Chain (BSC), ensuring that the platform is entirely decentralized. Prizes are distributed in LBLOCK, Lucky Block’s native token, meaning winners can instantly receive their winnings. Furthermore, since prize draw tickets are also denominated in LBLOCK, there’s no need for FIAT currency whatsoever.

LBLOCK price chart

Although Lucky Block does have a designated development team, the platform has many similarities to crypto DAO entities, such as allowing community members to become part of the project. This is achieved through Lucky Block’s Telegram group, which now contains over 47,000 members. There’s also a dedicated Lucky Block subreddit where members of the dev team remain active.

Lucky Block’s inaugural prize draws are set to commence on May 31st 2022, with the jackpot pool totalling $2 million. Half of that will be awarded in the main draw, $1 million, and investors who purchased Lucky Block NFTs will be entered into a separate prize draw for the chance to also win $1 million.

As Lucky Block acts in a decentralized manner, winners will be chosen through Chainlink’s VRF service and will be fully transparent to other community members.

Lucky Block review

Finally, the launch of Lucky Block’s games will also mark the beginning of regular income payments to LBLOCK holders. This is achieved since 10% of each jackpot pool is distributed to investors who hold LBLOCK in their connected crypto wallet. All in all, these characteristics mean that Lucky Block tops our DAO crypto list for 2022.

Cryptoassets are a highly volatile unregulated investment product.

2. Uniswap (UNI) – Leading DeFi Protocol With Over $5.5 billion in TVL

Uniswap logoUniswap is a decentralized exchange (DEX) built on the Ethereum network that allows investors to swap ERC-20 tokens easily. This is the token standard for Ethereum and includes some of the best altcoins, such as Chainlink and Shiba Inu. Since the exchange is decentralized, there is no need for an intermediary to facilitate trades.

Uniswap uses ‘liquidity pools’, which remove the traditional order book from the equation. Anyone can place their idle ERC-20 tokens into Uniswap’s liquidity pools and generate a yield in return. Returns will vary depending on the token, although they tend to be far higher than those offered in traditional savings accounts.

UNI price chart

Due to its popularity, Uniswap has become one of the most widely-used DeFi protocols globally. Many investors opt to invest in UNI, the protocol’s native token, simply to gain exposure to its growth. Due to this, Uniswap retains the second spot on our DAO crypto list.

Cryptoassets are a highly volatile unregulated investment product.

3. Compound (COMP) – Popular Crypto Lending DAO Trading at a Discount

COMP logoCompound is another DAO operating within the scope of the DeFi sector that allows investors to lend and borrow cryptocurrencies seamlessly. Investors can ‘lock’ their tokens into the Compound protocol and immediately begin generating interest payments. The great thing is that Compound allows investors to earn interest distributed in the asset that they deposit.

For example, if you were to deposit USD Coin (USDC), you would receive regular income payments in that currency. On the other hand, Compound also lets people borrow crypto, too. Since the entire process is decentralized, Compound requires no credit checks from borrowers, and the whole process is anonymous.

Compound price chart

Compound’s native token is COMP, with tokens given to all members of the ecosystem every day. Each token represents one vote, which is essential when debating governance proposals. Finally, this DAO crypto price is now down 93% from all-time highs – with many believing that it is trading well below its intrinsic value.

Cryptoassets are a highly volatile unregulated investment product.

4. Aave (AAVE) – One of the Best DAO Crypto Projects for Long-Term Potential

Aave logoAnother of the best DAO crypto projects to keep in mind is Aave. Like Compound, Aave is a decentralized lending protocol, allowing borrowers and lenders to interact without a centralized intermediary. The protocol was initially hosted on the Ethereum blockchain, but its popularity has allowed it to integrate with multiple other networks.

Many investors tout Aave as one of the best DeFi coins on the market, as the token surged by over 2,300% in early 2021. Although AAVE is now trading around 84% below May 2021’s all-time highs, much of this has been down to the overall bearish sentiment within the market.

Aave price chart

As with other DAOs, holders of the AAVE token can have a real say in the protocol’s governance. These include how Treasury funds are used and potential upgrades to the system. Furthermore, AAVE can be used as collateral within the ecosystem, significantly reducing fees.

Cryptoassets are a highly volatile unregulated investment product.

5. DeFi Coin (DEFC) – New DAO Project with Passive Income Potential

DEFC logoDeFi Coin burst onto the scene in mid-2022, following the long-awaited launch of DeFi Swap. DeFi Swap is a decentralized exchange (DEX) hosted on the BNB Chain that allows users to swap BEP-20 tokens and generate yields through staking and yield farming.

DEFC plays a crucial role in the DeFi Swap ecosystem and can be used as a medium of exchange when token swapping. Since DeFi Swap operates much like a DAO, investors can stake DEFC and receive interest – with yields reaching as high as 75% per year for 365-day lock-up periods. However, there are also additional ‘tiers’ for investors who seek more flexibility, although yields remain higher than average.

DEFC price chart

Another reason DeFi Coin has emerged as one of the best DEX coins is that token holders will be able to generate a passive income stream through the project’s ‘static rewards’ mechanism. These rewards are funded through a 10% tax levied whenever an investor buys or sells DeFi Coin. Ultimately, the combination of passive income and high yields ensures that DeFi Coin is one of the best DAO projects to launch this year.

Cryptoassets are a highly volatile unregulated investment product.

6. Curve (CRV) – Ethereum-based DeFi Protocol for Stablecoins

Curve logoFollowing a similar structure to many of the best DAO crypto projects on our list, Curve is a DeFi protocol hosted on the Ethereum blockchain. However, Curve differentiates itself by focusing solely on stablecoins. The Curve platform can be accessed through most web browsers and has a distinct ‘retro’ feel which enables seamless token swapping.

According to the Curve.fi website, over 70 liquidity pools are available where users can deposit their idle holdings and generate a yield. Yields tend to be based on supply and demand, although certain pools offer APYs of over 30%.

Curve price chart

The Curve protocol is governed by CurveDAO, which helps organize the smooth facilitation of the protocol’s services. Curve’s governance token, CRV, is distributed to liquidity providers regularly as a sort of ‘thank you’ for contributing to the system. As such, those investors who have a stake in the system are the ones who can ultimately influence governance.

Cryptoassets are a highly volatile unregulated investment product.

7. ApeCoin (APE) – Best ‘Meme Coin’ DAO

APE logoApeCoin is one of the best DAO crypto projects to launch this year and has garnered massive attention due to its NFT-based link. As the name implies, ApeCoin is strongly connected to the Bored Ape Yacht Club (BAYC) NFT collection – commonly thought of as one of the best NFTs to buy.

Although ApeCoin wasn’t actually created by Yuga Labs, the team behind BAYC, it has become intrinsically linked with the collection as NFT holders were given tokens for free via an airdrop. What’s more, ApeCoin has become the native token of ‘The Otherside’, which is Yuga Labs’ upcoming metaverse project.

ApeCoin price chart

Interestingly, the ApeCoin community governs itself as a DAO, which means that the community decides how Treasury funds are spent. Everyone who holds APE is automatically part of the DAO, with the ApeCoin website having a dedicated ‘Proposals’ section where people can vote on various ideas. In addition, as noted in our ApeCoin price prediction, the token also has exceptional speculative potential due to its backing on social media.

Cryptoassets are a highly volatile unregulated investment product.

8. Illuvium (ILV) – Upcoming NFT Gaming Project with DAO Governance

Illuvium logoOne of the best NFT games set to go live this year is Illuvium. Illuvium is a blockchain game hosted on the Ethereum network that is governed by a DAO. The game itself has fantasy role-playing game (RPG) aspects within a rich 3D world, where players can interact and battle each other.

Players can capture in-game monsters called ‘Illuvials’, which are structured as NFTs. These Illuvials can be used in player-vs-player (PvP) combat to earn ETH or traded on the game’s native marketplace. As such, Illuvial taps into the burgeoning play-to-earn (P2E) gaming space.

Illuvium price chart

ILV is Illuvial’s native ERC-20 token, which is used to govern the DAO. Interestingly, Illuvial’s DAO has an ‘Illuvinati Council’, which is a designated management team that is voted on by community members. As such, Illuvium uses an exciting combination of centralized and decentralized mechanisms to ensure the game runs smoothly for all players.

Cryptoassets are a highly volatile unregulated investment product.

9. Dash (DASH) – Innovative ‘Privacy Coin’ Set for a Rebound

Dash logoOne of the best utility tokens for privacy and anonymity is Dash. Dash began as a fork from Litecoin and has become a popular digital currency with people who wish to keep their personal details and transaction history private. Over the past few years, Dash has become more and more adopted by merchants and online stores and is now accepted in over 155,000 locations.

Dash works similarly to Bitcoin, except it has a built-in ‘InstantSend’ feature that means transactions can be confirmed in under two seconds. This is in stark contrast to Bitcoin, which can take around 10 minutes to confirm a transaction. Furthermore, Dash also employs a valuable mechanism whereby transactions are mixed in with others, making it nearly impossible to link a specific transaction to a particular wallet.

Dash price chart

The DASH DAO crypto price has been pretty volatile over the past year and is trading around 86% below all-time highs. However, this is a trend that we see with many other altcoins, mainly due to the ‘risk-off’ sentiment within the market at present. That being said, Dash still has valuable real-world use cases which could help it bounce back in the future.

Cryptoassets are a highly volatile unregulated investment product.

10. SushiSwap (SUSHI) – Beginner-Friendly DEX Set to Transition to a DAO

SushiSwap logoRounding off our list of the best DAO crypto projects is SushiSwap. SushiSwap is very similar to Uniswap because it is a decentralized exchange hosted on the Ethereum blockchain. Although UNI is still the king within this space, many investors have opted to buy SushiSwap as it offers a viable alternative to Uniswap.

SushiSwap has had a chequered history, most notably because the platform’s creator sold a tremendous amount of SUSHI, SushiSwap’s native token, which spooked investors and caused the price to sink. However, the platform has regained a solid following since then and offers a beginner-friendly way to enter the DeFi sector.

SUSHI price chart

Users can swap tokens and participate in yield farming, which is the process of pledging your tokens to the platform and receiving a portion of accumulated transaction fees in return. SushiSwap also enables users to stake SUSHI for appealing yields. Notably, SushiSwap isn’t entirely a DAO yet, although a proposal has been put forward to make this transition – which could happen in the coming months. 

Cryptoassets are a highly volatile unregulated investment product.

What is a DAO in Crypto?

The meaning of DAO in crypto is ‘decentralized autonomous organization’ – a blockchain-based entity where control is spread out across community members rather than one specific person or team. These organizations are in stark contrast to corporate entities, which are typically governed by a CEO and a management team.

Since control is spread out, the network’s community members have a real say in how the organization works. Governance is usually handled through voting mechanisms since DAOs will have a native token that essentially gives the owner a ‘stake’ in the organization. Elements that are voted on tend to include allocation of funds, upgrades to the network, and marketing decisions.

There are many advantages to operating as a DAO, with transparency being one of the main ones. Those who invest in cryptocurrency will know that transparency is hugely important since many crypto projects have sprung up with shady intentions. However, everything that happens within a DAO is publicly viewable, and no one entity can influence decisions.

Crypto Dao Projects

Furthermore, DAOs help create thriving communities of like-minded people who can come together to reach a common goal. They also remove geographical barriers to entry, meaning anyone can purchase tokens and participate in governance. As such, many of the best DeFi apps are now being structured as DAOs to take advantage of these benefits. 

How do Crypto DAO Projects Work?

So, how do these organizations actually work? As touched on above, since the project’s direction is decided on by the entire community, rather than one person, voting plays a crucial role in moving a DAO forward. DAOs tend to be built using smart contracts, ensuring that the organization remains decentralized.

The specific way that a DAO will function can vary, although most will allow token holders to vote on proposals put forward by community members. Certain DAOs will place greater emphasis on votes made by investors who hold vast amounts of tokens, which can be seen as both a positive and a negative. Given that everyone has a chance to participate, the process of making changes within the organization can be lengthy.

In terms of funding, this usually comes through making the DAOs native token available to purchase by the broader investment community. For example, although many people opt to buy Aave to become part of the community, some may wish to invest in the token for speculative purposes. Either way, the DAO will receive income through selling these tokens, helping fill up the Treasury and enabling changes to be made. 

UpdateeToro launched a DAO portfolio June 1st 2022, covering many of the DeFi coins we listed above and others such as 0x (ZRX).

Dao Crypto Portfolio

Cryptoassets are a highly volatile unregulated investment product.

Why Invest in DAO Crypto Projects?

DAO projects have garnered a great deal of attention from the mainstream media, with high-profile outlets such as The New York Times even running articles on these entities. Given their dramatic rise in popularity, DAOs have naturally become a target for speculative investors.

With that in mind, presented below are three of the main reasons why people opt to invest in the best DAO crypto projects:

Impact on Governance

As expected, the main reason people invest in these projects is to have a tangible impact on a project’s governance. This cannot be achieved with centralized projects, as a specified development team governs these. Although the community can still offer feedback, there’s no guarantee the feedback will be acted on.

This isn’t the case with DAOs, as community members can make proposals at any time and put these proposals to a vote. If a submission is voted down, it’s usually viewed as a good thing since it highlights that most community members do not want the mooted change. 

Fully Decentralized

Much like the best DeFi exchanges, DAOs are fully decentralized and tend to be run through the use of smart contracts. These smart contracts remove the need for a middleman and allow tasks to be completed automatically.

There are numerous benefits to decentralization, such as transparency which dramatically reduces (or removes) the chance that fraud could occur. DAOs are not influenced by governments either, thereby maintaining their integrity.

Access to the DeFi Sector

Finally, a large percentage of DAOs operate within the scope of the DeFi sector, which provides a realm of opportunities for yield generation. According to Yahoo Finance, the DeFi market surpassed a $100 billion valuation in February 2022, which equated to 47% growth from the previous year.

This trend shows no signs of stopping, as more and more investors are growing tired of the low-yield options offered by traditional banking institutions. Token swapping, staking, and liquidity pools are just some of the services provided by DAOs that operate within the DeFi sector, with more being added regularly. Due to this, we’ll likely see a more significant number of investors move their capital to this area of the market – making DAOs an appealing investment opportunity.

Best DAO Crypto Projects – Conclusion

In summary, this article has taken a detailed look at the best DAO crypto projects currently available, exploring why they are so popular and how they could shape various industries in the months and years ahead.

One of the most talked-about DAO projects is Lucky Block, which has generated massive traction in the mainstream media and social media. Lucky Block’s inaugural gaming draws are set to take place on May 31st 2022, with the prize pool currently standing at $2 million.

lucky block logo

Cryptoassets are a highly volatile unregulated investment product.

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