The very first Consumer Packaged Goods DAO is making moves on the blockchain. It’s called gmgm supply co. and it’s a Decentralized Autonomous Organization governed by a community of creators, builders and brand fanatics. gmgn was just launched by creative marketing agency Funday, along with additional founding members. Its goal: disrupt the CPG market and make room for a new business model for the people.
But let’s take a step back. What Is a DAO? In a DAO, ownership rights, funding, and governance live on the blockchain. By definition, DAOs are decentralized, this means that governance is not controlled by one person or entity. The rules and governance model are coded in smart contracts on the blockchain and cannot be changed unless voted on by the DAO’s members.
DAO includes the following:
- Decentralization – no central authority
- Autonomy – functions automatically (kind of)
- Organization – a coordinated, well-governed group
A DAO Inspired by a Call to Action
So what is gmgn? gmgn launched from a call-to-action by @richerd, Twitter user and co-founder of manifold.xyz, who stated someone should create a new brand of cereal and call it gm Cereal. The founders used that tweet as their inspiration for a needed paradigm shift. gmgn is well-understood Web3 speak for good morning and good night and it broadly represents the sense of unity that’s been cultivated between web3 natives in the new, borderless, and hyper-connected world.
gmgm has big ambitions and wants to launch 100 CPG brands where members will be rewarded for participating and will be given tools to be successful. Think of it like this; it’s a new business model that includes its customers in every step of the creation process. Members have collective ownership rights, the ability to vote on all major decisions ranging from product development to branding, pricing, distribution, marketing, advertising and more; and an opportunity to revolutionize the CPG industry and drive the next generation of beloved brands.
Now what are the gmgn brands? The first brand to market will be gm Cereal developed in partnership with OffLimits Cereal, a leader in the DTC cereal space. gmgn will foster Web3.0 collaboration with each brand it develops. Every box of gm Cereal will include rewards, like an NFT, token airdrop, merch, or collaboration to further fuel community participation.
And as a celebration of all things web3, gmgn partnered with well-known ApeInfluencer Bored Becky of Bored Ape Yacht Club to be the face of gm Cereal.
The Future of the Consumer Packaged Goods Industry
Why CPG? Now let’s look into the world of Consumer Packaged Goods. The CPG world has some major players like Nestle, Coca-Cola, Procter and Gamble, the list goes on. The CPG industry is still one of the largest sectors in North America, valued at approximately $2 trillion. These brands have become household names. But what isn’t often seen is what is happening behind the scenes. Has profitability taken precedence over the environment? Consumer packaged goods companies are profit driven and have lost credibility over the years along with a true authentic voice.
“If you look at the current CPG landscape, the majority of brands we eat everyday are owned by 11 giant CPG conglomerates. gmgn supply co is changing this and our members will have a say in what they eat, what products are going to be made and help lead the CPG industry in a new direction that’s been elevated by Web3,” said Phillipe LeBlanc, Co-CEO and Co-Founder of Funday.
As smaller brands and companies started to compete for a seat at the table, they realized the only way to stay above water was to scale or sell. Mergers and acquisitions of smaller brands became the norm. But because of these major changes in the CPG world, new brands started to emerge; brands that were eco-friendly, artisanal and sustainable. These larger CPG brands felt the pressure and started to mimic this new breed of products.
That’s where a DAO comes into the picture. It’s the best of both worlds. It’s a fair business model consisting of ethical brands backed by people who believe the products and of course organic growth.
gmgm supply co. doesn’t want to fix a problem, they just want to re-invent the industry.
Can a CPG DAO compete with big players in CPG? Yes. The possibilities with a DAO are endless because it’s so new. A DAO focuses on the little guys, not just the big picture. It promotes community ownership compared to just a profit. It drives equality rather than hierarchy. A DAO is more socially-conscious and has a clear, transparent structure.
According to data from Soocial, “A token holder in a DAO is like a shareholder in a company. As of January 2022, out of a total of 1.7M governance token holders, nearly 497.8k are active voters and proposal makers.”
Because we are in the early stages of web3 development, DAO’s aren’t quite mainstream. But as more people start investing with like minded individuals and DAO’s like gmgn popup, the potential is limitless. It starts with cereal but anything can follow-suit. What product do you want to see next? Members of gmgn all share a vision of leveraging the positives of web 3.0 to drive the next generation of beloved brands.
gm Cereal featuring Bored Becky from The Bored Ape Yacht Club will ship in Q3 2022.