Ceres DAO Together with Forked Governance May Open a New Dimension of DAO Governance

From direct democracy to representative democracy to Ceres DAO

Ceres DAO Together with Forked Governance May Open a New Dimension of DAO Governance

Compared with the traditional organization model, the biggest unique feature of DAO is that it is based on blockchain smart contracts as the technical foundation, which write part or all of the governance process in the form of code into the contract, and execute decisions and assign ownership with the concept of code being king.

At the same time, the code of the smart contract can be publicly audited and secured by a decentralized network of nodes. These features make the governance of the DAO completely transparent and cannot be tampered with by DAO members or externally.

But even though smart contracts are of skeletal importance for DAOs, we must not forget that DAOs are still composed of people and reflect the will of all members. DAO members thus need to participate in voting, deploying code, and discussing proposals to ensure that the DAO continues to operate on a given trajectory.

Therefore, the model in which people actually participate in the governance of the DAO becomes an issue that has to be discussed.

1. The traditional governance model of DAO

The development of the DAO governance model is, to some extent, similar to the development of the national democratic governance model.

In the early days, in order to ensure the full participation and voice of members, DAOs usually adopted the governance mode of direct democracy; the so-called direct democracy means that each member can vote on every decision of the DAO.

In this model, each member has a voice and all must follow the majority decision. Once the scope is expanded or the number of members reaches a certain level, the inefficiency and complexity of this model will be revealed.

Therefore, as the scale of DAO continues to grow, the governance model of DAO has gradually transitioned from the initial direct democracy to the common representative democracy nowadays.

DAOs usually use some kind of Token as the governance credentials, and members holding the Token have the right to vote and participate in the governance of the DAO. A representative democracy is a model in which members who lack the will to directly participate in the governance of a DAO delegate their Tokens and decision-making power to other members or organizations in some form.

In this model, DAO governance is obviously much more efficient compared to direct governance, and the process of many things is greatly simplified. However, inevitably, the degree of participation of DAO members plummeted, and the vulnerability of the DAO system also plummeted, which gave malicious people more room to do evil.

2、Ceres DAO’s Web3 exploration

In this dilemma, Ceres DAO adopts a Web3 native governance model – forked governance.

Ceres DAO and forked governance

Ceres DAO Together with Forked Governance May Open a New Dimension of DAO Governance

1、Governance Token CES

Ceres DAO is the world’s first decentralized digital asset management infrastructure and protocol based on DAO governance and empowered by Web3. It builds a new standardized DeFi asset investment model to provide non-custodial decentralized asset management services for crypto assets.

In terms of governance structure, Ceres DAO adopts a community-driven organizational structure, which provides a flexible mechanism that can prompt DAO members to participate in investment decisions, which is unmatched by the traditional venture capital fund model.

The move will also lower the barriers to entry for DeFi, allowing users to access more investment opportunities and returns without the need for volatile asset exposure and active money management.

A co-equal governance scheme, or AB share scheme token, is used in the Ceres DAO ecosystem.

Among them, CES Token is the voting equity token, while CRS Token is the non-voting liquidity token. It is obvious that CES Token is the main bearer of Ceres DAO’s governance function.

2. Forked governance and sub-DAOs

When it comes to the governance of Ceres DAO, in addition to CES Token, we have to mention its many sub-DAOs and nodes under it.

Ceres DAO Together with Forked Governance May Open a New Dimension of DAO Governance

The most unique feature of the Ceres DAO is its forked governance model. Bifurcation means that DAOs can be “split” into sub-DAOs, which are smaller and easier to coordinate than the DAO as a whole. In this model, the governance of DAOs is more akin to a social model than a simple voting governance act.

And sub-DAOs serve as the most dominant contributors to the Ceres DAO ecosystem. And their specific categories are extremely rich.

1) Investment DAO

For investment DAOs like Ceres DAO, project investment research and due diligence are crucial.

In the investment research DAO, people from different backgrounds and professions from all over the world can gather, and the diverse community members can contribute more value to the project’s investment research.

For example, technical members such as software engineers can give their opinions and interpretations of the project from the perspective of the code, and can also delve into the code to avoid unnecessary investment risks.

Individuals with extensive investment experience can make judgments on projects from past experience and keen sense, and give fundamental advice.

Individuals with professional experience in the financial industry can make rational and comprehensive judgments on projects from the perspectives of data analysis and economic model analysis.

In addition to the above-listed groups, there are often more professionals in the investment research DAO community who can contribute to the due diligence research of the project.

These people with technical expertise are in a better position to make the most informed decisions when holding tokens at the decision-making level. Also, because they are the largest stakeholders in the project’s tokens, they are also likely to not make decisions that will harm the long-term value of their tokens.

2) Brand DAO

Within the Ceres DAO community there is a group of people who can provide brand support, brand promotion, brand cooperation and brand image maintenance for the project. They can enable the project’s brand image to develop and achieve cross-border cooperation with other brands.

3)Marketing DAO

People with rich marketing experience in Ceres DAO will be concentrated in this community, and they will contribute to the marketing of the project and help the incubated early stage projects to accumulate traffic quickly.

4)Community DAO

People with rich experience in community operation in Ceres DAO will gather here to form and maintain communities in major countries around the world, contributing to the international development of the project and providing better services to users from all over the world.

5) Technical DAO

Within the Ceres DAO community, there is a group of technical staff with rich development experience, who will contribute to the maintenance of the underlying technical architecture, product design and code iteration of the whole community.

In addition, as we have mentioned above, technical members can also give investment advice and interpretation of the project from the perspective of code, and avoid unnecessary investment risks by studying whether there are loopholes in the code.

6) Operating DAO

In today’s crypto market, there is no doubt about the strategic role of operations in the whole project process, and the concept of “operations is king” is recognized by many people. They will gather together spontaneously to contribute their wisdom and strength to the growth of the community, external communication and event promotion.

Second, community operation experts will gather here to create and maintain communities in different countries to enhance the sense of community, contribute to the global development of the project, and provide better services to users from all over the world.

In addition, operational DAOs can leverage their collective power to “group buy” NFTs or project tokens during public or private sales, and lay out early-stage, high-quality projects by building a global community.

7) Strategic DAO

The development process of a project is somewhat uncontrollable and random, so macro-strategy and micro-level control are crucial, and this is where the strategic DAO comes into play.

In the strategic DAO, the members will have a full voice in the overall planning and layout of the project development. In order to avoid confusion, members’ proposals and suggestions will also go through a strict review and control process.


The above description of the sub-DAOs belonging to Ceres DAO shows the basic structure of Ceres DAO governance. These sub-DAOs are not exhaustive, there are many other categories besides them, and these sub-DAOs with different functions together form the thriving governance ecosystem of Ceres DAO.

At the same time, these sub-DAOs and their members will use their expertise and experience to build the Ceres DAO ecosystem. And their contributions are by no means unearned. According to the governance rules of Ceres DAO, they will be rewarded with Tokens through PoW to realize the virtuous cycle of Ceres DAO ecosystem.

3、Ceres DAO’s specific governance rules

Back to Ceres DAO itself, each sub-DAO and node has its own unique NFT (i.e. Rich Panda series), which are DAO NFT and Node NFT respectively. there are some differences in the rights of these two NFTs, where the holders of both DAO NFT and Node NFT have the rights of instant trading, token airdrop and proposal, but there is one There is one right that is exclusive to some DAO NFT holders – the right to vote.

In Ceres DAO’s governance model, only DA0s in the Staking CES TOP50 have voting rights, and if 67% of the votes are approved, the proposal will be passed and implemented. This means that these DAOs with voting rights will be the representatives of all DAO members. These DAOs will then be responsible for holding the last red line for the Ceres DAO after the governance of the DAO has been proposed by the other members and put to a vote.

In addition, although in principle sub-DAOs and nodes have the right to propose and initiate proposals to the Ceres DAO, the scope of proposals is somewhat limited. However, the scope of proposals is somewhat limited, excluding some matters that involve specialized scenarios such as underlying architecture. For example, new product releases, integration and collaboration with other protocols, and deployment in other Layer 1 ecosystems.

In addition, defining interests in the form of NFTs also means that the interests of nodes and sub-DAOs will be freely transferable in the secondary market through NFTs, which will put the governance of the whole DAO in a relatively flexible state, thus avoiding the rigid trap of the governance system.

Advantages of Ceres DAO forked governance

Ceres DAO Together with Forked Governance May Open a New Dimension of DAO Governance

In the traditional corporate model, bifurcated governance is unimaginable, as incentivizing disagreement and division is tantamount to suicide in their eyes. But in the context of crypto, it all becomes traceable. For example, the forked governance adopted by Ceres DAO is strongly native to the Internet, and it can be said that it belongs to the governance of the Web3 era.

1. Bifurcated governance vs. direct democracy/representative democracy

Compared with direct democracy, bifurcated governance splits up governance behaviors and issues. While maintaining a high degree of participation of DAO members, governance efficiency is also guaranteed.

Compared with representative democracy, forked governance is more decentralized, and the vulnerability of the DAO system is also eliminated to a certain extent due to its more complex forked architecture.

2. The trade-off between coin holding and voting rights

In addition, it is worth mentioning that Ceres DAO’s coin holding requirement for sub-DAO’s who get voting rights is also a clever design. As the DAO continues to grow, the number of members in the community and the coin price of CES Token will likely rise, and more sub-DAOs will want to compete for the right to vote on the DAO.

On the one hand, this will increase the cost for participants to make more rational, prudent decisions that are beneficial to the overall development of the community, thus helping the community to go into a virtuous cycle.

On the other hand, it will make it more costly for those intending to do evil and more difficult to do so, thus safeguarding the health of the overall governance structure.

Concluding remarks

Ceres DAO Together with Forked Governance May Open a New Dimension of DAO Governance

For a long time, people may have fallen into some misunderstanding about the governance of DAO. We keep trying to apply the democratic model of modern society into the architecture of DAO, but forget that DAO itself is a new era product born from the wave of Web3 and decentralized thinking.

Therefore, old wine in new bottles may not work, and DAOs should have a governance model that matches the undertones of their time. The forked governance adopted by Ceres DAO may be a strong contender for the final solution.

The word “fork” can be avoided in the traditional governance model, but in fact, in the open environment of the Internet, governance itself means disagreement, and disagreement inevitably leads to division, thus creating a sub-community. The many sub-communities that are the product of forking will together construct a decentralized social graph.

Back to Ceres DAO itself, as a practitioner of forked governance, it is a long way to go. As a product of the new era, forked governance undoubtedly needs a lot of practice to test, so Ceres DAO is inevitably struggling to find its way. However, I still believe that the long wind will break the waves, and both fork governance and Ceres DAO will eventually hang on to the sea.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/ceres-dao-together-with-forked-governance-may-open-a-new-dimension-of-dao-governance/
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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