How does a DAO make money?

Asked 3 years ago

Hi, I see people starting up and building their own DAOs, but I don't understand how one profits from a Decentralized Organization? Does one make a profit when members buy governance tokens?

Decentralized autonomous organization (dao)Tokens Governance token

Antonio Marshall

Tuesday, April 26, 2022

Basically, a DAO makes money via dividends from the investments it creates. Besides, owners can also make money by urging investors to invest in them individually. Billionaire Mark Cuban has labeled DAOs “the ultimate combination of capitalism and progressivism.” He strongly feels that DAO owners can profit greatly if their DAO communities embrace governance effectively. Cooper Turley, a seasoned investor and co-founder of multiple popular DAOs, seconds Cuban’s statement by suggesting that DAOs will determine how future businesses invest and make money.     