A new report on consumer perceptions toward brands builds a strong case for decentralized autonomous organizations (DAOs) as a marketing tool. The report, conducted by creative consultancy Long Dash, found that a majority of Gen Z and millennial consumers (63%) want more influence over how brands make their decisions.
In fact, 60% of this cohort said they would be interested in using company-issued crypto tokens in order to vote on decisions—a key component of DAOs. A DAO is a group that uses blockchain technology to deploy funds in an organized way. Members vote using governance tokens, which are typically cryptocurrencies native to that organization and accrue value over time, giving members a direct share in the group’s profits.
Marketers have already begun to incorporate DAOs into their marketing in a variety of ways. Bud Light has partnered with and joined a DAO in order to expose its consumers to the Web3 environment, while L’Oréal’s NYX Professional Makeup created its own DAO for creators behind beauty-focused virtual avatars.