Decentralisation and DAOs (Decentralised Autonomous Organizations) are emerging as the new norm in the world of branding. At Orchid, we have been observing the growing trend of decentralisation and the popularity of DAOs and in this article, we will delve into why brands should consider these technologies to build communities and transform the way they obtain consent from their target audience.
1 – Understanding Decentralisation
Decentralisation refers to the shift from traditional centralised systems towards more distributed networks. This involves the decentralisation of power, decision-making, and control over data and information. Decentralisation has the potential to disrupt a variety of industries, including finance and marketing, by removing intermediaries and creating more direct and transparent relationships between individuals and organisations.
2 – The Concept of DAOs
DAOs are a new type of organisation that operates on a blockchain and are driven by code instead of people. They are completely transparent, secure, and operate without intermediaries. Brands can leverage DAOs to revolutionise their engagement with their audiences and make decisions together, without the need for a central authority.
3 – Why Brands Should Consider Decentralisation and DAOs
Decentralisation and DAOs offer brands a new way to obtain consent from their target audience and engage with them. By utilising these technologies, brands can create more direct and transparent relationships with their target audience, making decisions together based on shared values and goals, allowing organisations to develop products and services already vetted and chilled by the strongest advocates of your brand. This can help build stronger connections and increase brand loyalty, ultimately creating an empowered community.
4 – Using Decentralisation and DAOs in Marketing Activations
Brands can use decentralisation and DAOs to create innovative marketing campaigns that involve their audience in creative ways, using new tools and features, that gives them more take in the commercial process. For example, brands can use a DAO to incentivise their audience to participate in the direction of a new product or service. Or build new utility novelties using some of the features enabled by the blockchain. This not only gives the audience a voice, but also helps build deeper ties with the brand.
Moreover, decentralisation and DAOs allow brands to create new focus channels and leverage the growing demand for digital ownership. For instance, a brand could create a DAO-based loyalty programme that rewards customers for their commitment and contribution. This creates new forms of relationships between the brand and its audience.
“1000 Fan” theory
This theory states that a creator or brand only needs to have 1000 true fans to be successful. This theory emphasises the importance of building a dedicated and passionate community of fans who will support and spread the word about the creator or brand. This is where blockchain technologies, such as DAOs, can play a crucial role in building communities. With DAOs, brands can directly engage with their audiences, involve them in decision-making, and reward them for their loyalty and engagement. This not only strengthens the bond between the brand and its audience, but also ensures that the brand has a loyal community of core fans who will carry on strong will to support the brand in the long-term. In the world of marketing, where building strong relationships with consumers is crucial, the “1000 Fans” theory, combined with the use of blockchain technologies, can be a game-changer for brands looking to establish a loyal following.
