The future of web3 DAO tools
Why The DAO is working towards its mission to be the leading force in web3, and how DAO tools are changing the game.
Prominent cyber libertarian John Perry Barlow once declared that “cyberspace” consists of transactions, relationships, and ideas themselves. With the advent of DAOs and their meteoric popularity over the last year, this is an exponential test in an ecosystem that is still learning how to stand on its own.
DAOs open up a whole new world of possibilities. Decentralized Autonomous Organizations (and DACs — Decentralized Autonomous Corporations) enable a large influx of talent into the crypto industry to collaborate autonomously around common goals, away from the barriers of centralization.
Coopahtroopa defines it in colloquial terms: “A DAO is an internet community with shared caps and shared bank accounts.”
Even so, digital communities come in all shapes and sizes, with different needs, goals and structures. There’s a Social DAO, a Collector’s DAO, an Investor’s DAO, a Protocol DAO, and the list goes on…
DAOs need tools
As we can see from the above diagram, the concept of DAO is very broad. If someone randomly picked two DAOs from this list and compared them, he would likely conclude that these are two completely different organizations or “enterprises” – with different ambitions, identities and characteristics, and different ways of working .
However, even if we divide them into parts, we will find a common underlying structure for all of these organizations, as they all need a social space or messaging tool for members to communicate (i.e. Discord or Telegram) – a governance mechanism , through which members can make collective decisions (like Snapshots), and a treasury that funds operations that the DAO votes for.
While this structure provided the foundation for the successful construction and development of DAOs, most of them still faced organizational problems due to the lack of functional tools and network cooperation: cumbersome, inefficient, and not much communication with other communities.
At the heart of many DAOs are web3 community projects, and social experimentation requires a simple infrastructure setup, which is where platforms like the d0xINFRA framework come into play. For example, District0x’s framework lowers the barrier to entry for any non-technical person building their own DAO. Dora Factory infrastructure that provides governance tools for DAOs. Next, let’s take a closer look at how DAOs can scale more efficiently and use tools to build stronger infrastructure for the long term.
Rapidly growing challenges
The linear hierarchy that some DAOs laud as the key to their rise could easily be the catalyst for their decline. In the early days, when DAOs were small and run by single-digit teams of members, this linear hierarchy was like a dream. Everyone can have a voice in governance, and everyone can contribute and be rewarded for their hard work. But as it grew, problems began to arise.
The unofficial “open door” policies of many DAOs allow for a rapid increase in these memberships. DAOs can grow to hundreds, thousands or even tens of thousands of members, although some members will slowly become inactive (also known as the “DAO free-rider problem”, when members start relying on others to be active but still expect a reward) .
This ultimately affects governance and direction. Without a clear governance structure, DAOs can quickly be inundated with proposals – if voted, then implementation is required. This is where most DAOs fail.
In addition to lack of progress due to low member activity, getting too many opinions can also be detrimental to the growth of the DAO, so what is the delicate balance between the two? How does a DAO need to be structured to avoid governance and productivity inefficiencies?
DAO Squads – “Working Groups”
In Cryptonetworks’ ownership, Patrick Rawson believes that for DAOs, “allocating ownership to squad-like entities with more specialized goals is a key long-term issue that needs to be addressed”.
Rather than taking a bottom-up approach to every decision, DAOs can introduce what Rosen calls “squads” or “workgroups.”
Whether it’s a company, a factory, or the blockchain community, it’s been proven time and time again that specialization is a better way to divide an organization’s “workload” into pieces and break down tasks into manageable projects. Continuing this idea, these teams will be responsible for different key areas that are important to the DAO. Just like divisions in a company, there will be “marketing teams”, “business development teams”, “QA testing teams”, etc.
Just like different departments of a traditional company, the marketing team of a DeFi DAO can be responsible for developing and executing a marketing strategy for the DAO without worrying too much about the token economics of the project, as this can be responsible for a completely different team within the DAO.
Two important things are achieved by introducing working groups:
- Scale governance speed – by directly eliminating voting overhead and empowering teams to execute directly without voting on every decision
- Extended Actions – Simple division of labor, allowing to perform many tasks and solve more problems at once
Working Groups can be used to motivate and appropriately guide DAO members by developing a clear list of “similar tasks” that can be completed quickly to move things forward in a productive manner.
Recently we’ve seen the rise of DAO tools – ad hoc frameworks that allow DAOs to improve community governance, accountability, and general productivity. One such tool is DAOnative – a startup from Berlin.
DAOnative — Gamified DAO participation
Several DAO tools are currently being built with innovative approaches to DAO management. For MemeFactory’s DANK DAO, we decided to use DAOnative to try a gamified “challenge”.
DAOnative is a community growth platform that aims to solve real problems: what does a DAO need? Any platform that wants to grow using web3 primitives (ie decentralized decision making or NFTs) can use DAOnative to attract and reward its members.
DAOnative introduces “Challenges” – think of them as tasks in an MMORPG – which, when completed, reward the achiever with EXP (experience points).
This level of abstraction, while very simple, is necessary to lower the barrier to entry for newcomers to the DAO while simplifying the experience for others, with the ultimate goal of increasing engagement and growing the DAO in a sustainable manner.
“An optimistic version of the future of DAO tools will enable everyone to work more in their own way, working on meaningful projects, allowing them to express their different interests.
On the other hand, the pessimistic version is that humans become cogs in the DAO machine. Call it the gig economy 3.0. Use DAO tools to fully dehumanize collaboration by assigning reputation scores to humans and automating every aspect.
At DAOnative, we’d love to help steer DAOs in the right direction and help people engage more meaningfully with their communities. We want to create a completely open source and transparent game engine so that people can have the same opportunities to grow in DAOs. The DAO creates its own rules, which are visible to all contributors.
What is the biggest hurdle facing DAO tool builders today?
“There is no clear consensus on what a DAO actually is, and we are building tools for things we don’t yet fully understand. DAOs evolve with tools, which means that the tools we build will affect the form and possibilities of DAOs. It’s hard to find the right balance when it comes to providing templates with constraints.
Many builders came to the field without ever participating in a DAO. While it might be nice to have a blank head, it’s hard to build the right tool without experiencing the problems that many DAOs face.
The solution is simple: join the DAO today and start contributing. “
If you want to grow your DAO in a sustainable way, while incentivizing your members to contribute, participating in a DAO with relatively clear goals seems to offer a solution. A fun and interesting way to expand engagement, increase productivity, and build a stronger foundation for the future of governance.
Scaling a DAO is a challenge
All in all, we can clearly show that successfully scaling the DAO/DAC is a challenge we are currently working on. Governance is a great start, but how to effectively scale operations while incentivizing participation and effectively directing resources to a common goal within a DAO with thousands of members remains an open challenge.
Once web3 addresses these initial hurdles, we can expect the rise of DAOs with meaningful purpose and productive organizational structures to have an unparalleled impact on web3 and the real world.
Kevin Owocki, the founder of Gitcoin and the de facto authority on decentralized coordination, also stated at ETH Amsterdam in April that DAO coordination and communication will have the most profound impact on our lives (he specifically uses the term “ImpactDAO”). word), as shown in the following figure:
It will be interesting to see how the growth of these ecosystems will eventually feed into the defining power of web3 as we witness the optimization of communication and collaboration across DAOs.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/focus-on-the-future-of-web3-dao-tools/
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