Kay Takeaways:
- House Krause DAO aims to buy the NBA.
- The organization has a plan to govern the 30-team association. But will it work?
YEREVAN (CoinChapter.com) – The crypto space and sports entertainment walked hand in hand in the past year, from minting sports-related tokens to numerous NFT collections and ownership deals. However, February started with a possible ownership deal involving a DAO dubbed Krause House that plans to buy an NBA team.
In detail, a DAO complies with the rules encoded as a computer program. It is transparent, controlled by the organization members, and not influenced by a central government. The crypto community creates DAOs to expand their ownership of any specific object (the latest failed attempt involved the US Constitution) or organization.
Also read: ConstitutionDAO's PEOPLE token has crashed nearly 57% from its nonsense peak — what's ahead?
Hence, NBA fans created Krause House to have a say in what happens to their favorite teams and players. Some 2,000 members specifically raised $4 million worth of Ether (ETH) tokens in 6 days to buy out the Association, and the fundraising is ongoing. In detail, the DAO also organized a Membership NFT sale in November and raised an additional $2.5 million.
However, all 30 teams united by the NBA have an average franchise value of $2.2 billion.
What’s Krause House DAO game plan?
In detail, the NBA is a self-managed limited corporation. It unites 30 teams, and each of them has a General Manager (GM). The latter makes decisions concerning contract negotiations, player contracts, staffing coaches, etc. The role of a GM is complex, and the candidates are typically prior players, coaches, or have extensive experience in sports management.
Additionally, all team GMs answer to a Commissioner. Therefore, the team majority owners and the Commissioner have the last word in all the decisions.
Also read: Crypto Community HeritageDAO Seeks to Acquire Korean National Treasures.
The DAO has an array of proposals for administering the NBA capital and resources to the community. For example, Krause House proposes to build a Metaverse, where all DAO members can congregate, attend meetings, onboarding sessions, etc.
Moreover, the organization plans to explore buying smaller leagues. This way, the community can experiment with governance with smaller entities before doing this at scale with several teams and tackling something as big as the NBA.
Additionally, Krause House will sort out potential regulatory concerns and determine a legal entity for the DAO.
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Despite having a preliminary plan of action, there is still a vast array of concerns when it comes to community governance. Krause House is the first to experiment with team ownership. Hence, they want to “do it right” and revolutionize the future of sports.
For now, Krause House is focused on building credibility and establishing that DAO ownership is more effective and profitable.
