The burgeoning trend known as Web3 has boosted the idea of the Decentralized Autonomous Organization (DAO), which is essentially a group of people pooling money to achieve a common goal of some sort.
There are all kinds of weird and wonderful DAOs out in the wild. For instance, PleaserDAO managed to grab an exclusive copy of a Wu-Tang Clan album for $4 million. But many of them don’t succeed: a notable DAO that attempted to purchase an original copy of the US constitution failed last year.
Now, there’s an odd new project out to grab the limelight called The Tweet DAO. At first glance, the idea is simple: you buy one of the 1,000 egg NFTs it’s minted, and you get the right to post one tweet per day from the organization’s Twitter account.
So how does this thing work?
As the DAO noted in a Twitter thread, its eggs began trading at 0.1ETH (~$350 at the time of writing). And for every 100 eggs sold, the price of unsold NFTs went up by 0.1ETH. So, the final set of eggs will be sold at 1ETH.
Once you’ve got an egg, you can head over to the community’s site, and post whatever you want to tweet via the DAO’s Twitter account (which currently has some 5,200 followers). There doesn’t seem to be any cap on what you can post. That’s not a good policy if you’re looking to engage on a social network.
Some of the DAO’s tweets are childish, and others are trying to promote some cryptocurrency or NFT projects to invest in.
My entire net worth is in eggs
— The Tweet DAO (@TheTweetDao) April 3, 2022
Unless the owners of the project are keeping some tokens for themselves, they can potentially make 500ETH (~$1.7 million) to just let people tweet from a not-very-popular account. That’s a lot of money for something you can do for free.
What are some of the problems TweetDAO is facing?
As you can expect from a DAO with “no grand vision or roadmap,” there are already some problems. An error in the smart contract of the project will let 10,000 people mint tokens, instead of 1,000.
The developer said on Twitter that once the project will hit the limit of 1,000, they will set up replicas of the original eggs, and give control of the account to them. Plus, they will set up refund contracts for people who will purchase the remaining 9,000. But as we’ve seen in the cryptocurrency world, nothing’s certain.
Another problem is that because of a particular tweet, the project’s account was suspended last night, and the DAO couldn’t post tweets for hours. And since there’s no moderation, there’s a chance this can happen again.
Meanwhile, the floor value of TweetDAO’s eggs on the NFT trading platform Opensea has hit 0.7ETH ($2,420). And the total trading volume of said eggs has hit 251ETH (~$868,00).
That’s not a cheap investment, unless you have thousands of dollars rolling into your bank account every day.
And there’s already a duplicate project on Opensea, which is trading eggs that might not give you any tweeting privileges.
It’s just better to save your money and invest in some other NFT project that might give you better returns. Plus, remember, you can tweet for free.