Decentralized Autonomous Organizations (DAOs) have been making headlines over the past years as technologies like NFTs and the Metaverse gain relevance on the global stage. While some of these headlines highlighted the failings of DAOs like Spice, most included success stories like Uniswap, American CryptoFed DAO, and ConstitutionDAO. Now, Tribul is looking to capitalize on this success by allowing DAOs to invest in some of the most exclusive art and artifacts.
The world of art has been one of the most exclusive spaces to invest in, with auction houses like Sotheby’s and Christie’s often limiting access to their auctions. This, in addition to the amount of money required to acquire some of the best works of art, has made it impossible for the average person to participate in the space. It is not a surprise that crowdfunded bidding is now becoming a major movement in the world of art, with DAOs like ConstitutionDAO leading the charge back in 2021.
In the past, DAOs have been formed to bid in auctions that wouldn’t have been accessible to its members in an individual manner. Take the example of ConstitutionDAO, which saw its members raise more than $45 million to bid on a rare copy of the United States Constitution in a Sotheby’s auction. While the DAO lost the auction, history was made by allowing hundreds of people to participate in the bidding with money being returned in the end.
Unfortunately, despite DAOs like ConstituionDAO and PleasrDAO proving that crowdfunded bidding is viable, most auction houses don’t possess a system that makes them easily accessible. Tribul, a blockchain-based auction house that recently emerged from stealth, is looking to make it easier for DAOs to gain access to unique artworks and artifacts.
By having its platform built over blockchain technology, Tribul not only offers an easier way for DAOs to bid in their auctions but also reduces the costs associated with bidding in such auctions. According to Tribul’s Co-Founder Aaron Hakimi, the startup’s model results in a take rate that is “70% lower than typical auction houses”.
DAOs operate by making use of a new organizational structure in which all members have a say when it comes to decision-making, making them a perfect fit for Tribul’s mission. As these organizations are formed around common purposes, decisions are usually related to the allocation of common resources. This is possible due to the DAOs relying on blockchain technology, which ensures its members can operate with the complete transparency, accountability, and security that smart contracts and tokens offer.
eBay’s Former CEO & President Devin Wenig and Christie’s former SVP & Head of Digital Media John Caruso have been backing and advising the startup. Caruso expressed his support for Tribul’s vision by stating:
“For too long, the legacy art auction houses have represented a closed network of buyers and sellers, trading property and cash, back and forth within that closed loop. Tribul’s strategy smashes the gates of exclusivity… this will encourage a greater diversity of buyers and will ultimately drive hammer prices higher.”
Tribul makes use of blockchain technology to tokenize an individual’s stake in a collective’s bidding. If the collective bid wins the auction, the items are transferred to a secure location and then has its tokenized version split into distinct units, with the respective tokens being transferred to each winner depending on their stake. With these tokens, users will earn decision-making rights, be able to verify their pro-rata ownership over the asset, and mint pieces they can use to trade pieces of digital ownership in the secondary market.
When Anil Dash and Kevin McCoy came up with the idea of NFTs, they were looking to democratize art by bringing technologists and artists together. However, the opportunism resulting from the NFT craze didn’t allow them to do so. Now that the craze is over, startups like Tribul are looking to harvest the benefits of NFTs to help them fulfill their original mission while also expanding it even further.
