# Market Dynamics

Once tokenized, a DAO's valuation becomes dynamic, influenced by forward-looking factors and investor sentiment. For example:

* Investors may choose to buy or sell based on their personal valuation metrics, causing the DAO’s tokens to trade at a **premium or discount** to its intrinsic market value.
* This dynamic behavior mirrors how **Real Estate Investment Trusts (REITs)** operate on a stock exchange, with the market determining the current value.