You're reading State of the DAOs, the high-signal low-noise newsletter for understanding DAOs.
If variety is the spice of life, then a bear market is the bran cereal of crypto — you know it’s necessary to keep the cycle moving but it can be hard to swallow in large doses. Bear markets are tough going, that’s for sure, but in this issue’s editorial you’ll get some exposure to best practices that will help you minimize, if not eliminate, the pressure.
It’s a little unusual for the editorial not to focus squarely on DAOs and/or the DAO ecosystem, but as communities that are made up of individuals, DAOs are affected by bear markets just as much, if not more, than their contributors.
As usual, there are ecosystem articles to explore further and a look at some of the new tools available to DAOs, as well as a spotlight on Aragon DAO. You are forgiven if you’re today years old and just finding out that the Aragon Network Token is known as ANT; the beauty of this space is that we’re all learning new information all the time!
For those wanting to learn more of the acronyms floating around crypto, don’t miss the Essential Web3 Glossary article featured below. Put some time aside to read the thought-provoking piece on communities and don’t miss 0xJustice’s elegant take on the four pivotal areas of disintermediation: communications, currency, contracts, and companies. It’s a must read for anyone interested in the current state of the DAOs.
Contributors: Josh Du, Tonytad, angelspeaks, KingIBK, Warrior, Boluwatife, Kornekt, trewkat, siddhearta, HiroKennelly
This is an official newsletter of BanklessDAO. To unsubscribe, edit your settings.
Author: Josh Du
Cover art by Tonytad
If you've managed to stick with the world of crypto through a year of unrelenting hacks, regulatory curveballs, and portfolios awash in red, give yourself some credit. You're either a masochist or a true believer — possibly both. As for why you're still here, perhaps it's resilience, savvy, or a mixture of the two. Whatever the reason, you're in a unique position to capitalize on the opportunities that bear markets often present. Before we delve into these, it's important to note: always do your own research. The insights shared here should never replace tailored financial advice. Still, as professionals actively navigating this tumultuous landscape, we believe these bear market best practices are crucial, and we wanted to share some of our tips for being able to do just that.
Let's be absolutely clear: whether you're a seasoned web3 investor or a Wall Street savant, cryptocurrencies warrant your attention as part of a diversified portfolio. Historically speaking, we've seen this asset class recover remarkably well from 80%-90% drops in value. Not only do they bounce back each time, but they also reach new all-time highs. That's a level of resilience you can't ignore.
https://lh5.googleusercontent.com/4QQFqIPLGqN0v-UK86ZYuMXcUlIrMhTgbcL9By0PQQqjXIODTbmvJLDWcQoyM7ZioeKUlYkq5aAuQJTmIivziDrSEA_oa7ZMPxkwDrNE6Yil_tJ2E6_5vICk7Z4k1n0Oaap6vrzdwLgEs2MXOZgsgcA
Now, onto the cycle of bear markets. If you're looking for stability, you won't find it here, and that's not necessarily a bad thing. Bear markets in crypto are recurrent, and like winter they’re harsh, but vital for the ecosystem. We've already survived a slew of crashes, each followed by a healthier recovery, topping previous records. This isn't the speculation-driven bubble of the past years though. We are standing on the precipice of concrete developments, with projects touching everything from DeFi protocols to NFT-based gaming experiences and even Real World Assets being tokenized. We've moved from the realm of 'what could be' to 'what is,' and that's a leap forward that is worth taking a moment to appreciate.