Is DAO Technology Viable For Funding eSports Teams?


Is DAO Technology Viable For Funding eSports Teams?

There is an apparent correlation between gaming and cryptocurrency, although this direction is not explored all that often. ESports are becoming a global trend, with tournaments and sponsors providing competitive gamers with a lot of money. But what if we were to use the concept of a DAO to run various eSports teams?

Also read: Why Serious Investors Need Bitcoin in Their Portfolios

DAO for eSports Is Worth Considering

eSports DAO

Not too many people are aware of what goes on behind the scenes of eSports teams. Finding sponsors is not an easy task, unless the team has managed to successfully compete on a global level. Moreover, social media influence is relatively small, except when it comes to diehard fans of the genre. This also means eSports teams struggle to communicate and engage with their fan-bases.

One interesting concept has appeared on Medium, discussing how we can use a DAO to fund eSports teams. Doing so would solve some of the issues mentioned above, as well as boost team loyalty. Due to the global appeal of Ethereum, it is an option well worth exploring in the future.

While it would require eSports teams to secure funding at first, they would be sure the money remains in their wallets at all times. Withdrawals can be made by creating a new proposal, which is then approved or rejected by the investors. Plus, investors can make their own proposals, such as adding a new team, or changing members on the roster.

Investors supporting the eSports teams would have a direct influence over how the business is run at every turn. Sometimes, it can help to have multiple sets of eyes focusing on the same concept, and look at it from different angles.

This “hive mind” approach is also an incentive to make well-weighted team decisions. If and when and eSports team would win a tournament — or some monetary reward — it can be divided into dividends for DAO investors.

This method of funding allows eSports teams to go well beyond the traditional selection of sponsors. Gaming hardware manufacturers and energy drinks are two of the most prominent sponsors for these types of teams. With a DAO structure, they can effectively crowdfund their plans.

One of the most important aspects of the gaming industry is connecting with the fans. Most competitive teams overlook this aspect, as it is about more than just tweeting about upcoming matches. Fans are more than spectators in a DAO structure, as they can purchase tokens to be part of the decision-making process.

Avoiding Misunderstood Technology

Bitcoin.com_eSports DAO Avoiding Mistakes

While this concept sounds great on paper, it has become clear there are some technological concerns to take into account.

The DAO, which is still the most successful crowdfunded project in the world, used similar technology to achieve their goal. As it turned out, there were some issues with the technology used, allowing an assailant to drain funds.

Thus, the primary goal for eSports DAOs should be to avoid flaws in their governance and funding systems.

What are your thoughts on creating a DAO for competitive gaming purposes? Let us know in the comments below!

Source: Medium

Tags in this story
Communication, DAO, eSports, Funding

Images courtesy of Shutterstock, Wikipedia, Daohub

Jean-Pierre Buntinx

Jean-Pierre Buntinx is a freelance Bitcoin writer and Bitcoin journalist for various digital currency news outlets around the world, Jean-Pierre also has a keen interest in Fintech and technology, and he is always open to new challenges.

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