As Web 3.0 continues to develop, we're seeing the rise and formation of DAOs (decentralized autonomous organizations). They're organizations represented by rules encoded on a computer program that's run and ruled by its members.
BlockbusterDAO, a newly formed DAO, aims to put together $5 million in funds to purchase Blockbuster from the Dish Network. How will BlockbusterDAO revive the former video rental giant?
Why is this DAO seeking to buy Blockbuster?
Last month, a DAO made headlines when it attempted to buy a piece of the Constitution auctioned off at premier auction house Sotheby's. Despite its failed attempt, the DAO has inspired others in their decentralized coordinated efforts.
BlockbusterDAO announced in a Twitter thread that it wants to acquire Blockbuster through selling NFTs priced at 0.13 Ethereum (ETH), currently valued at $530 each.
According to BlockbusterDAO, it wants to buy the video renting company from Dish Network to revamp its model as a streaming service on the blockchain.
In buying the brand, the DAO aims to build around what Blockbuster is known for—videos—but “turn Blockbuster into the first-ever DeFilm streaming platform.” In essence, the DAO wants to make Blockbuster the first decentralized streaming service.
If the DAO is successful in "liberating" Blockbuster from the Dish Network, it intends to purchase festival films and partner with other distributors and companies before building out the decentralized streaming service.
Focusing on making the prospective "DeFilm streaming platform" a Web 3.0 staple, the DAO is already talking about using ERC-20 tokens (an Ethereum based token) as movie passes, which will add more function and value. Similar to the streaming services, the DAO aims to develop a subscription model, which will enable users to purchase a set number of movie passes a month.
How much does it cost to build a decentralized streaming platform?
In 2011, Blockbuster was bought out by Dish Network for approximately $320 million. However, the current estimate of $5 million comes as a counter to an offer of $1.8 million from Tai Lopez, the CEO of Retail E-commerce Ventures (REV). Already purchasing brands like Pier1 Imports and RadioShack, REV's offer makes the BlockbusterDAO estimate a decent one.
According to the DAO, "It’s time to build a massive DeFilm project that will revolutionize the creative decision-making and financing of the film and television industries forever." If the DAO purchases Blockbuster, members of the DAO get to create and vote on proposals to decide on funding allocations.
Contrary to centralized organizations where decisions are often made top to bottom, DAOs are a commodity with no primary leader. The decisions are made through proposals created by its members.
Revolutionizing the way we work, and what people can own, developing DAOs continue to discover ways to execute decentralized coordination.
For a DAO that's less than a week old, BlockbusterDAO is already making plenty of headway in its goal to acquire a former favorite past-time to many—a visit to Blockbuster. It will be interesting to see if BlockbusterDAO is successful and if it sticks to its plan.