HumanDAO, a decentralized autonomous organization connecting play-to-earn (P2E) gamers with digital asset owners, has announced it will hold a public sale for its forthcoming governance token HDAO on Dec. 1.
The platform allows users to lend, sell, and rent valuable in-game assets and tokens that can be used to generate revenue in play-to-earn titles. The platform’s value proposition is to enable investors holding digital gaming assets to rent out those assets and earn passive returns through the DAO, while players located in emerging economies can access income-generating in-game assets which may otherwise be unattainable due to price appreciation.
HumanDAO will sell 5% of HDAO’s supply (or 50M tokens). Price will be determined through a Dutch auction. In a Dutch auction, investors bid for the number of tokens that they wish to purchase at their chosen price, with prices either climbing in response to heavy bidding to fulfill a minimum number of tokens issued, or falling until price meets a reserve price set by the issuer.
Play-to-earn DAOs have gained popularity this year, with Yield Guild Games raising $12.5M in 30 seconds in an initial DEX offering, and $4.6M in a financing round led by venture capital firm Andreessen Horowitz. A similar project, Merit Circle, raised $105M in 72 hours. HumanDAO says it is different from other play-to-earn DAOs because it plans to issue a greater proportion of tokens to its community as opposed to the founding team at launch, and because tokens will be distributed over a longer time frame than its counterparts.
55% of HDAO’s supply will be allocated to the community over 10 years to “ensure 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. Staking rewards will also be available to users who lock up HDAO.
HumanDAO’s founders will receive 10% of tokens, while advisors will claim 5% and 15% of the supply will go to the project’s treasury. 10% has also been allocated to “builders” – including engineers, ambassadors, and treasury strategists. Each of these token allocations will be fully unlocked as of Nov. 2026.
Participants will also be airdropped an NFT that the DAO says “will unlock perks down the road for holders.”
HumanDAO describes its forthcoming HDAO token as “a gateway to the metaverse,” with the asset “functioning like a metaverse index for investors and a jobs board for earners.”
Over just nine weeks, HumanDAO has grown from a membership of only 20 individuals to more than 15,000, signaling the surging popularity of crypto-powered play-to-earn titles, according to the team.
The DAO describes its mission as “improv[ing] lives through crypto,” noting plans to collectivize crypto-based revenue generation using a variety of protocols that fall outside of play-to-earn gaming in the future.
“HumanDAO will utilize any crypto platforms or incentives to feed its revenue stream. P2E is just the lowest-hanging fruit at the moment,” the team stated.
The team emphasizes that it redistributes profits back to its community of gamers and ambassadors, highlighting that the organization is not backed by private capital interests after having raised “$0 from VCs and $0 in token private sales.”
Play-to-earn revenue streams
Currently, HumanDAO generates revenue by facilitating the lending and renting of valuable in-game assets.
Players who rent these assets keep 70% of the revenue generated using the in-game items, with 15% of profits going to the DAO itself, and a further 15% being received by “managers — individuals who manage the training and onboarding of this massive number of people entering the Metaverse.”
HumanDAO notes that hundreds of digital assets are currently being lent through its platform, adding that merchandising, royalties, and esports may also provide opportunities for the DAO to generate revenue in the future.
The DAO manages its treasury by diversifying and utilizing DeFi protocols for yield generation. Token holders will be able to propose and vote on how funds are mobilized also.
HumanDAO’s assets are controlled by a multi-signature wallet controlled by seven varied respected entities in DeFi including the BanklessDAO, Enzyme, and Defi Dad. Four of 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 within 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 per day, asserting that play-to-earn gaming may offer economically marginalized communities opportunities for permissionless income generation.