HumanDAO, an autonomous decentralized organization that connects play-to-earn (P2E) players with digital asset owners, announced that it will hold a public sale for its next HDAO governance token on December 1st.
The platform allows users to borrow, sell and rent valuable in-game assets and tokens that can be used to generate revenue on titles played to win.
The platform’s value proposition is to allow investors holding digital gaming assets to rent these assets and earn passive returns through DAO, while players located in emerging economies can access in-game income-generating assets that may be unattainable due to to price appreciation.
HumanDAO will sell 5% of HDAO’s inventory (or 50 million tokens). The price will be determined through a Dutch auction. In an lDutch auction, investors bid for the number of tokens they want to buy at the chosen price, with prices rising in response to heavy bidding to meet a minimum number of tokens issued, or falling until the price meets a price of reservation set by the issuer.
Played-to-Win DAOs have gained popularity this year, with Yield Guild Games raising $12.5 million in 30 seconds in an initial DEX bid and $4.6 million in a funding round led by the venture capital firm Andreessen Horowitz.
A similar project, Merit Circle, raised $105 million in 72 hours. HumanDAO says it’s different from other DAOs to play to win because it plans to issue a higher proportion of tokens to its community as opposed to the founding team at launch, and because the tokens will be distributed over a longer period of time than their equivalents.
At least 55% of HDAO’s supply will be allocated to the community over 10 years to “ensure that participation opportunities are still available for future underserved communities,” the team said in a post shared exclusively with The Defiant.
HumanDAO is still determining which platform the sale will be hosted on. Token holders will also be eligible to participate in a bonus program with an additional 20% in rewards. Fixed rewards will also be available to users who block HDAO.
HumanDAO founders will receive 10% of the tokens, while advisors will claim 5% and 15% of the supply will go to the project’s treasury. 10% was also allocated to “builders” – including engineers, ambassadors and treasury strategists. Each of these token allocations will be fully unlocked starting in November 2026.
Participants will also receive an NFT which, according to the DAO, “will unlock future benefits for holders”.
HumanDAO describes its next HDAO token as “a gateway to the metaverse”, with the asset “functioning as a metaverse index for investors and a job board for the winners”.
Ascension of HumanDAO
In just nine weeks, HumanDAO has grown from a membership of just 20 individuals to over 15,000, signaling the growing popularity of play-for-win titles with encryption, according to the team.
DAO describes its mission as “improving life through cryptography,” noting plans to collectivize cryptography-based revenue generation using a variety of protocols that are out of the game to win in the future.
“HumanDAO will use any encryption platforms or incentives to feed its revenue stream. P2E is just the easiest fruit to find right now,” said the team.
The team emphasizes that it redistributes profits back to its community of players and ambassadors, noting that the organization is not backed by private equity interests after raising “$0 in VCs and $0 in token private sales.”
Play-to-earn revenue streams
Currently, HumanDAO generates revenue by facilitating the borrowing and leasing of valuable in-game assets.
Players who rent these assets keep 70% of the revenue generated using in-game items, with 15% of the profits going to the DAO itself, and a further 15% being received by “managers – individuals who manage the training and integration of this large number of people entering the metaverse. ”
HumanDAO notes that hundreds of digital assets are being loaned out through its platform, adding that merchandising, royalties and eports can also provide opportunities for DAO to generate revenue in the future.
DAO manages its treasury by diversifying and using DeFi protocols for revenue generation. Token holders will also be able to propose and vote on how funds are mobilized.
HumanDAO’s assets are controlled by a multi-signature portfolio controlled by seven respected entities across DeFi, including BanklessDAO, Enzyme and Defi Dad. Four of the seven signatures are required to enact governance.
The organization will target a variety of play-to-earn games, using a subDAO structure for each title played on the network. SubDAOs will have unique governance structures but share the same HDAO token.
The team notes that more than 2 billion people currently live on less than $5 a day, saying that the game to win can offer economically marginalized communities opportunities to generate income without permission.