The whales are back but this time, they’re taking over DAOs. How can the industry evolve to fit the growing needs of these new pods? 0xdorsal has some ideas
in various ways. Others have taken on a more traditional business model, offering revenue shares to members in exchange for DAO tokens.
As DAOs continue to emerge for the new kind of whale trader, they will depend on DEXs that can facilitate large orders in a safe and cost-effective manner. While most large-order DeFi traders acquiesce to negative factors like impermanent loss and exorbitant fees, DAOs and their whale-trading counterparts would massively benefit from custom-built DEXs that implement tools like time- weighted average price to execute large orders with zero price impact — fully on-chain.
Furthermore, DAOs are often better funded than individual traders. They can pool resources and use them to buy large amounts of tokens when they believe the price is low. This allows them to make significant profits when the price eventually rises. DAOs offer a number of advantages to investors such as retail crypto traders having an inherent incompatibility with traditional centralized financial systems. This mistrust is only amplified when dealing with large institutions. DAOs level the playing field by piecing together large institutional benefits without the centralized aspect by pooling memebers’ resources and coming together as a community.