14 fatal challenges DAOs will encounter and 8 methodologies for change

I believe that every DAO participant has encountered the following problems:

– Self-proclaimed DAO, but no different from the community

– Centralized rule by the core team

– Recruit volunteers and prostitute labor

– Meetings are cumbersome, difficult to reach consensus, and no one does anything

To put it simply: neither decentralization nor autonomy, not even a good incentive mechanism, survival is a problem, in the name of DAO swaggering through the market, in fact, nothing.

If we believe that DAO is the future and more commercial companies and NGOs will transform into DAOs, if these problems are not solved, we are playing hooligans.

If you want to solve these problems, you need to re-understand what is DAO

(1) What is a DAO?

As @felixzhou.eth put it:

“In my opinion Bitcoin is the perfect DAO based on three main characteristics:

1. All participants are equal and abide by the same rules, there are no special participants;

2. The contributions of the participants to the system are objective and quantifiable, and there is no subjective judgment;

3. All the behaviors of the participants are recorded in the system (on the chain), and there is no need to refer to the activities outside the system;

DAOs that do not have these characteristics are either inherently flawed, and their sustainability is doubtful; “

Blockchain innovation can create a system maintained by technology, allowing DAOs like Bitcoin to be born. However, in the face of broader human social activities, it can only provide a series of tools such as Token, NFT, and smart contracts. Although these tools naturally have the attributes of encryption and confirmation, they can’t prevent them from being used by dealers to cut leeks, and even achieve deeper mental control.

So in my opinion, there are two paths for the development of DAO:

1. Build a technology-based system so that the miracle of BTC can be reproduced in more scenarios.

2. Build a human-based system, use various tools, and constantly approach the ideal of district centralization and autonomy.

Because I’m not very tech-savvy, but the second one is my home ground and the subject of this article.

Before discussing specific solutions, we must ask ourselves:

What is preventing people from uniting and creating truly decentralized, autonomous organizations?

(2) Obstacles to the development process of DAO

In my opinion, there are 4 key dimensions that hinder the birth of a DAO:

1. The natural formation of power difference

a. Authority projection:

Authoritative projection People will project the “man in charge” in the DAO as the representative of power, which is especially obvious in the Chinese DAO, because everyone is often used to managing and being managed, arranged and arranged. Therefore, the initiator of a DAO often does not want to be dictatorial, but because the relationship model and relationship narrative in the minds of the participants have not changed, the participants have instead projected power. If the leader of a DAO approves this power projection, it means that he needs to assume the responsibility of serving and satisfying other participants. If he shows himself to take such responsibility, the participant who projects the power will often be happy to be served and arranged because that is what they are used to. Although probably not what they want.

b. Interpersonal influence:

From the perspective of social relationship network, the central node of a system and the bridge node (structural hole) linking two groups will have a greater influence on the entire network, thus forming a power difference. And many DAOs are naturally gathered because of a person’s personal influence, or formed by the merger of multiple organizations. Participants have to rely on several key people to do things, and the outside world will give priority to these key people when they want to cooperate with this DAO. With time and the Matthew effect, key figures become more and more relied upon and become the core assets of DAO, and naturally have a power center.

c. Hierarchy solidification:

People who join the DAO after the class is solidified often have a sense of being away. Before being recognized and accepted by the DAO, they naturally feel that they are in a low position of power. Indeed, those who join the DAO first are more familiar with the rest of the DAO, and those who arrive first define the Vibe of the DAO at this stage, which are symbols of power and superiority. Therefore, with the development of DAO, the retention rate will be lower and lower, and it will become more and more difficult for newcomers to enter the core, and it is natural to start to solidify.

2. The inner tension of the leader

a. The battle between ideals and reality:

An idealistic leader often has many assumptions about the ideal state of a DAO. At the same time, if a DAO is to be decentralized, it will definitely need to use the power of the community to grow a lot of things from the bottom up. Often, however, these natural growths fall short of the leader’s personal aesthetic, or are completely unexpected. At this time, an authoritative leader will often take a series of measures to correct the development of the community towards its ideal state. If the community is more dynamic and not killed by this wave, the leaders themselves often fall into a deep sense of self-blame and powerlessness.

b. Fear, jealousy and control :

Do you feel uneasy when there are people in DAO who you don’t trust, who form your own small circle by spreading influence and gain the power to influence the development of DAO? When your partner undertakes a lot of outreach work, all the docking, interviews, and cooperation are moving towards him, but you are doing the dirty work in the DAO, will you be jealous? When a DAO develops multiple power centers and everyone’s influence and benefits are out of balance, it often means a constant loss of control for the founder, and emotions such as fear and jealousy often follow.

c. Use vision to add leverage and be attacked:

In order to bring more people together, the founder will draw a big cake and describe a beautiful vision to attract everyone to participate and contribute voluntarily. However, once the expansion period has passed, the development of DAO has stagnated, or the founders have become exhausted because of obsession, fear, and jealousy, and it is easy to lose faith and betray relatives. And the favors that were obligated to contribute because of the vision before this moment will all become debts that the founders cannot repay, and even suffer backlash, losing their reputation in the angry accusations of contributors.

d. The do-or-leave dilemma:

If you manage it yourself, you will become the center of power, contrary to the ideal of decentralization. If you don’t care, it may be divided into human nature, and democratic decision-making will be too inefficient when you encounter problems, and it may be cold for projects that have not been voted for. So in the end or not?

3. The wandering and entanglement of the participants

a. Low self-efficacy:

A decentralized community means giving the power of governance and decision-making to individual members. But in fact, because of the lack of opportunities and space for civic autonomy, Chinese people have been in a low position of power for a long time during education and work. Often accustomed to dealing with other people’s management and arrangements, either becoming power management and arranging others, or fighting alone as a solitary warrior… Seriously lacking relevant experience, awareness, and ability to participate in community governance.

For example: how to efficiently integrate collective wisdom to form consensus, division of labor and cooperation? How to let your opinion effectively influence the whole team? How to effectively listen, ask questions, clarify, summarize, and feedback in communication? If these abilities are lacking, you will naturally not know how to participate in a community, and you will naturally develop a low sense of self-efficacy and not know what to do while watching the community develop.

b. must survive first:

In a society where material is not abundant, most people are still slaves, and most of their energy has been exhausted to live. It is a luxury to talk about dreams and create. There is no chance to find what one really wants, nor to sit down and imagine what “free association of free men” can create, let alone contribute freely within a DAO. If there are very few idealists who can do it, it is often very unstable.

c. Confused goals and vague incentives:

If I want to contribute to our DAO, what counts as a contribution? If my understanding of the DAO’s goals conflicts with the founders’ goals, is my effort a sabotage? If I’m giving a lot in secret and no one knows about it, is there no incentive? Are benefits determined by working hours or by work results? These questions are difficult to answer.

4. Systemic flaws in the community

a. Build a city on the desert:

Some areas are not suitable for building DAOs, and there is no bottom-up ecology like a desert. But for various reasons and obsessions, the founders have to come to these places to start projects, attract a group of consumers with money, vision, products and services, and hope to make a DAO by fooling everyone into contributors, but in fact Just wishful thinking.

b. Generating electricity with love is not sustainable:

Participants generate electricity with love, with no financial gain except for honors and bad checks. Behind this is often because there is no mature business model and the failure to open cash flow from 0 to 1. This is often doomed to a gradual flow of contributors.

c. Lack of suitable co-governance spaces and tools:

WeChat is popular, but it has too few functions, and the DC retention rate is low. Platforms such as Snapchat, Dework, and Coordinape are both decentralized and require learning costs, making it very difficult to popularize.

d. Weaknesses in organizational systems:

In addition to these, some overseas DAOs seem to have some deeper challenges, such as democratic tyranny (dividing the giant whale), and the construction site tragedy of the community fund.

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How many of these problems can be solved by blockchain?

I’m pessimistic because it’s a conundrum rooted in human nature and organization.

In fact, before the emergence of DAO, there were many people in the world who were exploring management methods that matched the 21st century, and many of them were pursuing decentralization, decentralization, and more autonomous organizational forms, and produced excellent cases. , which can be collectively referred to as “organizational change thinking”.

They have also developed their own tools and methodologies based on organizational behavior, management, psychology and other research, such as Facilitating, Coaching, Private Boards, U-Theory, Holacracy… There are also some successful Cases, such as the Dawn Village in India, which has been developing for more than 50 years, and the blog group of the nursing service company in Northern Europe.

I believe that with the growth of more and more applications based on the blockchain, coupled with Web3er’s belief in decentralization, there is an opportunity to create more DAO tools to be developed, inheriting the methodology left by the organizational change trend, Let’s create a real DAO in the future together.

So how do we overcome these difficulties?

What tools and methods are there to help DAO operators overcome these challenges?

Before we start the discussion, let’s take a look: what does a DAO based on the rule of man and closer to the ideal state look like?

(3) What is a DAO based on the rule of man and closer to the ideal state?

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Development path

For the long-term development of a DAO:

An ideal DAO first needs to choose to grow on a piece of soil that is constantly growing.

For example, the GenZ DAO that I have been deeply involved in recently is a DAO that focuses on the new generation of young people born in the 1995s and 2000s. This kind of identity mark will naturally bring about the cohesion of identity, and it is also easier to obtain the support of other predecessors in Web3. At the same time, even if there is no GenZ DAO doing it, there are all kinds of Web3 post-00s in the world forming their own small groups, and they are often more willing to cooperate with each other than to compete with each other.

Choosing a piece of soil that is constantly growing can easily bring a steady stream of automatic attention to the DAO.

Various things may emerge in a DAO. For example, some people in GenZ DAO are eager to find partners, some people want to start projects, some people want to share secondary market investment information, and some people want to learn Solidity. These are all good things, but not a DAO’s vocation. A DAO should define itself as a city’s public service provider, providing services for the ecology in which the DAO is located.

Therefore, in an early stage of ecological development, the most important thing is to find more people to come together to build the city of Rome. It is necessary to do a good job in publicity, design a new transformation path, and create a community experience that can meet everyone’s needs.

With the development of the ecology, it will also be a very important responsibility to promote the flow of information within the DAO and create a public discussion space for more people to know each other, thus forming a relationship network and emerging self-organization.

When a DAO begins to gain some influence, more resources begin to converge to the core team, and positive cash flow flows in. At this time, on the basis of the core team running, it must match the corresponding distribution mechanism, autonomy mechanism, and The resources gathered by the core team gradually become the infrastructure that other players in the ecosystem can apply for and use.

In the end, some project teams that can bring cash flow will grow in an ecosystem, and some project teams will focus more on expanding influence & serving users in DAO, forming a multi-center, nested network structure, because the relationship network Symbiosis + a common vision and come together. At this time, the core team needs to further encourage community autonomy, give more power and responsibilities to community autonomy, and focus more on maintaining the consensus of the entire community on the goal and vision, the implementation of the autonomy & collaboration mechanism, Fairness of distribution and incentives, as well as proactively identifying potential crises and organizing forces to respond together when needed.

leader’s beliefs

For a DAO founder, the following beliefs & awareness are required:

What the DAO eventually develops depends on the collective consciousness rather than the individual will, and it is normal that it does not match its own expectations.

My own responsibility is to save this bureau so that everyone can get what they want in this system, to unite all parties to reach a consensus on decentralized autonomy, and to help everyone truly have the ability to be autonomous.

The attention, resources, and support of others that I gained in the early days of being a DAO are all resources leveraged by the vision, which will be repaid sooner or later. If DAO is lucky enough to run, it should also become an infrastructure to provide these resources and influence to those who need it in the community.

go all out

It is normal for half of the DAOs to die, or to be kicked out. Anyway, there are always people in this ecosystem who will come out to do things, and there will always be people willing to provide basic services for more people, but it’s just another person and another team that turns this vision into reality. No matter what, while doing your best, live to the death.

Only by deeply understanding the goals, pain points, expectations, and obsessions of everyone in this relationship network can we return to reality from our idealized imagination of DAO, and create services that are truly valuable to the individuals in DAO.

If your ability is not enough to fulfill the responsibilities of a core team, you have two choices: one is to give up bravely, and the other is to find a suitable person to do it and give enough money.

It has to be said that being a truly idealistic DAO is undoubtedly a practice.

participant’s status

And, the ideal participant of a DAO should be the “free association of free people”.

Free people are no longer enslaved both materially and economically. They know what they want, they have their own passion, vision and personality, they dare to look directly into the eyes of authority and raise their middle finger, relying on their skills and resources, they are free and self-respecting. walking on this planet.

When this group of free people are close to each other, they can see each other’s external goals, abilities, and value choices, as well as each other’s internal traits, trauma, and relationship patterns. And can go deeper in the communication, not only can exchange surface information, opinions, but also see the beliefs, cares, fears, consensus behind the language. Free people see each other, choose to stand with those who have the same goals and appreciate them, find the place where their wishes fit with DAO, and achieve each other with DAO while creating their vision into reality.

Everyone has their own unfreedom and imperfection to some extent. But I believe that an ideal DAO should help its participants achieve greater freedom, self-improvement, and unity of mind and body.

Other realistic options

Of course, in addition to this idealistic DAO, there are some more realistic options, such as:

Change a company’s equity into Token, issue a cryptocurrency company to employees, use more on-chain tools to govern, maintain legal compliance, and claim to have transformed into a DAO.

In a small team with fixed business and out of SOP, the value of each link is fixed and written into a contract. The roles in the team are fixed, and people can change. After receiving the payment, they are automatically assigned to each role according to the proportion in the contract.

The project side of the product handed over the governance rights of a part of the product to the community, and issued a bounty to encourage community members to participate in the contribution to get incentives, and claimed that their product was co-governed with the DAO.

An influential KOL or media will form a fan community, hand over the governance of the community to excellent fans for autonomy, and form an interest group DAO.

All of these are feasible, and to a certain extent, traditional projects have taken a small step towards decentralization and autonomy. I believe that in the future, there will be a large number of “DAOs” with such a rubbing concept in the market. Perhaps this is the fate of the DAO concept after it was created.

The possibility is over, let’s take a look at the methodology and tools that “idealistic DAO” can use when it is implemented

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(4) Methods and tools in eight specific scenarios

Scenario 1: Proposal system

In a normal community, if a member sees a problem, he tends to raise it and wait for the DAO team to solve it.

If he is in a creative desire & sense of responsibility and wants to try to solve it himself, he often has to seek opinions from multiple parties, hold meetings and discuss, and obtain authorization from the core team before he can start trying. There will be a lot of energy consumption in the middle, restricting the generation of actions.

Especially for members with little influence in the DAO, they often feel that they have no power, and they do not even think that they can act.

How to encourage ordinary community members to spontaneously participate in governance?

How to get people who want to do things, get rid of inefficient meetings in the consensus process, and focus on action?

How to give influence within the DAO to each member?

The “proposal system” can solve these problems very well.

Basic rules:

Every member of the DAO has the right to issue proposals to participate in the governance of the DAO.

Every qualified proposal will be valued for public discussion, voting and results announcement.

A so-called “qualified proposal” needs to include:

[Original] Why did you make this proposal?

[Objective] What problem does this proposal solve? What is the value to the community?

[Program] How to solve it?

[responsible person] Who will be responsible for the implementation of the plan?

[Reward] What kind of reward can the responsible person get after completing the task?

For example, an ordinary member issued a proposal full of loopholes around a proposition. On this basis, everyone made comments, feedback, and proposed amendments. Perhaps after the proposal has iterated to 4-5 versions, general consensus will naturally be gained.

Compared with aimless meetings, the proposal system encourages everyone to start the discussion around the final consensus. And the discussion revolves around how to iterate to a better consensus. This can greatly improve the efficiency of discussion.

After a proposal is thrown, there are 4 ways to respond:

【Support】Approve the proposal

【Objective】to oppose the proposal

[Entry] On the basis of support, issue amendments, and personally become the [responsible person] to assume part of the responsibility for the proposal to land

[Rejected] On the basis of objection, point out the unreasonable places in the original proposal, and give revised and more reasonable amendments

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Support and opposition only express opinions, while entering and rejecting means taking action, so the latter two will have a greater impact on the proposal itself. For example, the sponsor of the proposal, if he receives a [No] vote and the corresponding amendment, he has to face it and give a response.

A very typical scenario: if the initiator of the proposal has set a high reward for the proposal, but the organization’s treasury is limited, the small partners who know the DAO funding situation well will be very motivated to cast a [reject] vote. and make reasonable amendments.

Of course, the [responsible person] can also write someone else, but unless the other party approves, it will not take effect.

When the proposal system is popularized, any community member who has opinions on the DAO and is willing to do things can use this tool to publish proposals, and while participating in governance, more people will pay attention to you, so as to develop their own DAO. Influence.

PS: Blankless DAO has a more complete proposal template

Scenario 2: Bootstrapping Technology

What if every meeting is inefficient?

How to make everyone have equal expression in the meeting, while taking into account the efficiency and output?

How to allow the community to spontaneously form a consensus of vision, rather than giving one to the participants like a product?

In a community, founders often need to give everyone confidence in the early stage, so they will exude their own charisma in the meeting to make everyone feel that this matter is reliable. But at the same time, it often occupies the right to speak, and makes community participants feel: this is your project, and I am just a participant.

A more ideal state is for the founder to figure out how to do it, guide the participants to think about the organization’s vision, goals, and plans, and help the participants who are thinking about this question to get the same answer through guidance. The consensus formed in this way will make everyone involved in the discussion feel: this is what I came up with, there is a share of my wisdom in it, this is my creation, and I am willing to work hard to turn this vision into reality.

If you want to achieve this effect, it is best to have [Facilitator Instructor] participate in the construction of a DAO. The series of [workshops] they brought to DAO can create a more equal and inspiring field through a series of precise agenda design, and help more truth and love emerge in the organization. Imperfect inspiration needs to be stimulated in an inspiring field; repressed emotions and opinions need to be raised in an open and inclusive field; questioning and self-defense often make a meeting smelly and long, which also needs to be resolved through the process. avoid. Typical examples include private board meetings, review meetings, vision consensus conferences, small works incubation, and so on.

Based on research on human nature and meetings, a Facilitator can also customize meeting procedures for various goals through precise agenda design, based on the situation of the organization,

For a participant, compared to gaining the right to vote, having the opportunity to express himself at a meeting and discovering that the ideas he has come up with have really become part of the consensus, he can feel more that I am needed by this DAO and have it. worth.

All kinds of operation details, classic processes, and mental methods can’t be written in one book.

As a Facilitator who has held 50+ workshops and designed workshops for 10+ teams, I am just getting started.

For more information, see Guidance: A Practical Guide to Team Brainstorming and Group Psychotherapy

Scenario 3: The leader abdicates

When community members rely heavily on the founder and project authority seriously, and the existence of the founder has begun to restrict the development of the community, what should we do?

How to promote the formation of bottom-up power relations and autonomous order within the DAO? How to break the authority projection of the participants?

[founder abdication] may also be an option.

The absolute authority of the past appears hollow, and those who care about this DAO will have the imagination and power of autonomy.

I look forward to one day in the future when I can create a self-directed and self-acted “Glorious Revolution” for my DAO members to help more members feel the sense of sovereignty after authority has been defeated. The specific operations are as follows:

Simultaneously operate 2-3 identity participation communities. One of them, as the founder, helped DAO run from 0 to 1, actively enhanced its authority, and made other members of DAO feel the founder’s repression of the community through some words and deeds. At this time, I took the initiative to plan an event to trigger a conflict, and used my other identities as an ordinary member to initiate a revolution, kicked me out of the DAO as the founder, and joined other DAO contributors to popularize the proposal system and hold a community conference. Clarify our mission, vision, and goals, so that all those involved can experience the thrill of breaking authority and learn the basic skills of community autonomy.

Of course, there are also softer options, such as gradually fading out of the community, popularizing the proposal system for everyone, supporting small partners who have the courage to participate in governance, etc.

Scenario 4: Three Incentive Mechanisms

How to develop an incentive mechanism?

If the boss does not pay wages, what are the incentives for decentralization and autonomy?

How to match the corresponding rewards for the self-organizing behaviors emerging in the community?

In the DAO organization, I currently see 3 relatively matching compensation distribution mechanisms:

1. [Community Bounty]

Through the monthly meeting, it is clear what problems the DAO core team needs to solve at this stage, and the reward will be issued according to the funding situation.

There are two types of bounties: 1. When there are very specific goals and SOPs, they are released based on events. 2. In the case of vague goals and SOPs, release based on roles.

2. [Proposal system customization]

By publishing proposals, community members customize goals, events, responsible persons, and rewards for completion. Everyone is encouraged to define compensation according to their needs. The core team of DAO will also make suggestions & amendments according to the funding situation.

3. [Coordinape decentralized subjective reward]

A 10-person co-creation team in DAO spent 3 months to start an NFT project and cut 30EHT from the leeks. Now everyone wants to divide the money, how to divide it?

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Since everyone does not have a clear relationship between superiors and subordinates, they are all based on their own backgrounds and assume responsibilities in various dimensions such as design, operation, media, and overall planning. Some people have taken on a lot, and some people have provided great assistance. Although there is no clear set of criteria to quantify everyone’s contributions, each member has his or her own ideas in mind. After all, after 3 months of cooperation, who has created indispensable value, who is paddling, who has done a lot of basic work, and who has helped the team resolve conflicts, everyone sees it in the eyes and keeps it in mind, and this is subjective. The basis of reward.

At the same time, because everyone’s values ​​will be slightly different, some people care more about the achievement of goals, some people care more about the growth of the team, and some people especially want to thank a member for their help… These different The perspective makes the rules for scoring different for each person when subjectively tipping. And this diversity further promotes the fairness of reward results.

So how does this kind of subjective reward work exactly?

For the above example, do this:

10 people in the team, each get 100 points in the Coordinape, and give all the points to the other 9 people.

After all the gifts are completed, the points received by everyone will be settled, and the proportion of points held by each person at this time will be calculated.

You can directly use the proportion to determine the reward distribution.

In the process of actual use, some people will receive a lot of points, because everyone feels their contribution and credit, or appreciates their contribution to the team. The less engaged members tend to receive fewer points, while the more influential members of the team may aim to “encourage more team members”, distribute points more evenly, or more Give encouragement to the less influential but hard-working individuals on the team. This makes the whole distribution model fairer.

And all of this can be done through Coordinape’s website.

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Even Coordinape can show a network graph of the community by assigning records to each individual.

Who are at the heart of the community, linking more members? Are small groups emerging in large organizations?

can be clearly presented in this way.

From another perspective, this subjective assessment actually internalizes the [appreciation economy] into an organization.

Because when we send out the points in our hands, it is actually a very direct way to express our appreciation and gratitude to each other.

Therefore, rather than subjective evaluation, I prefer to call this mechanism [team reward].

And Coordinape goes a step further: you can leave a message to your colleagues when allocating points, and express your real-name recognition and encouragement to them.

The efforts of a team member are recognized and seen, which is also a great encouragement and empowerment for them.

Especially in the early stage of the development of a DAO, we may not have economic benefits to provide to community contributors. This kind of seeing and recognition will be more important.

Because it means the realization and affirmation of one’s self-worth.

It can be said that it is very good to see each other through this way of rewarding and confessing among team members.

Therefore, [subjective quantitative contribution] + [team empowerment] can be said to be the place where Coordinape can create the most value for an organization in actual combat.

Scenario 5: Live Team Dynamics

How does the core team of DAO help community members understand the challenges they are facing and form a consensus on goals?

How to let more people know what the core team of DAO is doing, and spontaneously get involved in co-creation?

Like Web2 companies, many DAO teams separate themselves from the community, have a strong sense of management identity, remain mysterious in front of the community, and regularly release new activities and products. But the subtext of doing so is: we hold the power, we decide the development of DAO, our DAO has aesthetics and quality control, and we need our permission to participate in co-creation.

To a large extent, the community will also feel like it is in a state of being arranged, waiting for something new to come out, not knowing how to help. The core team can also feel isolated at times, why so few people are doing things.

A key action at this time is to blur the boundary between the core team and the participants, and tell everyone by chatting in the community and opening a Space voice, as a core team member:

What problem am I trying to solve?

What dilemmas & challenges I am going through

What is my vision? What do I hope this will do?

My feelings and vulnerability?

What kind of support and help can I expect?

My next plan and action list

It is recommended to open a WeChat group & DC channel dedicated to the core team.

When you share these internal things openly and honestly with everyone like writing a diary, you are creating countless opportunities for others to help you, and also giving more members and external supporters an opportunity to get involved.

When others continue to see your sincerity, vulnerability, desire and effort, trust will grow naturally~

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Scenario 6: Information Map

How to facilitate the emergence of more self-organized actions within a DAO?

What if the DAO relationship network was promoted to be more decentralized, forming a multi-core, deep-link nested “starfish-shaped” relationship network?

The emergence of self-organization needs to see each other, and multi-core needs to be formed because of one thing.

If DAO wants to achieve these two goals, what it can do is to promote the openness and transparency of information and the creation of deep social opportunities.

E.g:

【DAO internal roster】

Assemble the self-introductions and personal application manuals of in-depth members and make them public to other DAO members.

【Project Map in DAO】

Gather the profiles and joining methods of each project group, grouping, and networking community together to make a map for newcomers who want to go deeper into DAO

【Team division table】

Publish the team’s roles, division of labor, and the collection of information about the core responsibility of each project to DAO’s internal partners and external people who want to discuss cooperation.

Scenario 7: Points depreciation & withdrawal mechanism

How to boost the metabolism of a DAO?

How to encourage new members to innovate?

How to prevent early contributors from becoming giant whales in decision-making and dividends through the accumulated contribution value?

There are two typical ways

1. [Exit Mechanism of Project Team]

The exit mechanism needs to be clearly defined at the start, such as exiting the project team without participating in the meeting for two consecutive weeks.

2. [Depreciation of Points in the Dual Token Mechanism]

Some DAOs will use the dual Token mechanism: Points Tokens are obtained by participating in governance, and corresponding weights in voting can get gold Token dividends; Gold Tokens are obtained through investment or dividends, which can be traded and will not participate in governance.

In order to prevent early contributors from accumulating a large number of point tokens to become giant whales, even if they still occupy the decision-making power after exiting the project, a depreciation mechanism can be used, such as setting a decay rate for the point tokens, which can participate in decision-making and the effective part of dividends gradually over time. reduce. In this way, newcomers can also get a lot of effective points to participate in governance and dividends by making contributions.

The size of the decay rate may need to be selected according to the goals of the project development.

Currently looking for a DAO tool that supports this functionality.

Scene 8: Improvisation and Co-creation

How to reduce the operating cost of a DAO?

How to get unexpected nonlinear growth?

How to enjoy the fun of creation with more members of the DAO, instead of turning the DAO into a job?

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Even DAOs like Blankless can experience burnout: everyone feels that there are too many work items, and the enthusiasm that once seemed to be lost because of one specific work item has become a tool to achieve goals.

However, because of the community attributes of DAO, natural people have the opportunity to share and express more physical, emotional, and interest directions here, instead of pursuing professionalism, professionalism, and separation of work and life like traditional companies.

So there is an opportunity for more improvisation to happen than planned. For example, I talked about High today, so let’s start Space! There was a stalk in the group chat, take a screenshot and make an emoji! You are a very interesting person. I want to ask you to make a phone call. Other friends are welcome to come and listen~

In fact, if you don’t have presets and goals, and give your life time to spare, it’s actually very easy to improvise some ideas that can be implemented immediately, and implement them when you have the greatest enthusiasm for the idea. Things done in this way often bring unexpected surprises to you.

8 scenes are almost shared.

I believe that there are more scenarios and methods that can achieve deeper decentralized autonomy at the operational level, and I look forward to exploring them with you in the future!

(5) Is a decentralized DAO the future?

——Some suggestions for DAO tool development

4

Having said all that, what does it have to do with blockchain?

In fact, I believe that there will be companies that adapt to the Web3 era, digital nomads & telecommuting, and pay wages in cryptocurrency. Most of them will call themselves DAOs, but organizations that can break through the limitations of human nature and organization and achieve true decentralization and autonomy will be very rare.

At this moment, the development direction of many DAO tools is to find some data that can be monitored in DAO, and design a reward mechanism. Behind this is actually the rational thinking of tools at the core of technology. But what we have to face is that in the real usage scenarios of social DAOs, contributions cannot be quantified like BTC, and cannot be motivated based on fixed results and actions.

The more practical development direction is: to promote collaborative processes and relationship networks to be more decentralized and autonomous. E.g:

Optimize the proposal system, such as

Bind the proposal to the community wallet through the contract. If the proposal is judged to be completed, the responsible person will be automatically paid from the community wallet according to the [reward] set in the proposal.

A better interactive space for proposal announcements, voting, and amendments

At the network level, identify the key nodes that are growing in DAO, and remind the core team to take care & give rewards

Provide identification and calculation tools for the depreciation mechanism of the dual-token system, and embed other voting tools.

For example, business owners who need to manage employees in Dingding service, Feishu service organization & team, we also expect to see a platform that integrates various DAO tools to provide DAO governance space.

……….

Looking forward to seeing more DAO tools that are deeply linked to organizational collaboration developed in the future and find application scenarios!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/14-fatal-challenges-daos-will-encounter-and-8-methodologies-for-change/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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