Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

In 2021, the DAO is rapidly emerging, and it is widely believed that the DAO will be a huge structure, and every Web3 organization and even a Web2 company will eventually become a DAO. We see that various types of DAOs are being established, from social DAOs to DeFi DAOs to investment DAOs to service DAOs.

It’s reminiscent of “pick and shovel,” a theory inspired by the famous gold rush of the mid-19th century, when thousands of hopeful prospectors headed west in hopes of making a fortune. It’s a risky bet because not everyone will make it, but the best way to profit from this gold is to sell these would-be miners their necessary tools — “pick and shovel.”

Likewise, cryptocurrencies are the new gold rush, and DAOs are the hottest, and by the end of 2021, everyone is starting to build “pick and shovel” for DAOs.

The results of it? In just a few months, we found that “there are more DAO tools than DAOs!”. Indeed, we can see that there are many DAO tools on Twitter, yet DAOs are still struggling at the most basic management level!

In this deep dive, we’ll discuss and take a look at the overview of tools in the Solana ecosystem, their shortcomings, and what problems DAOs need to solve.

The structure of this article is divided into the following sections:

  • Introduction – DAOs and DAO tools, where are they now?
  • Dive into the list of tools (what they are, features, etc.).
  • Challenges and opportunities in the ecosystem (interesting part).
  • Summarize.

let’s start.

Solana & DAOs

We’ve seen a lot of DAO tools gain traction in Solana. To better understand them, we can categorize the various DAO tools as:

  1. Discover the DAO: Find products for the DAO
  2. Infrastructure for DAOs: AWS for DAOs
  3. Talent Mobility: The DAO’s Linkedin
  4. Productivity and Collaboration: G-Suite for DAOs
  5. Focus on Payments: The DAO’s Stripe
  6. Fund Management: The DAO’s Bank

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Discovering The DAO: The DAO Marketplace

While these wouldn’t necessarily be classified as DAO tools, these are excellent DAO discovery platforms where contributors can explore different DAOs, just like you would in Product Hunt to view different products based on different categories, reviews, etc.

Here are a few of them:

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

DAOHQ

It lets you discover over 1000 DAOs – a one-stop shop for finding, investing in and voting on DAOs.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

DAO DAO

is a Web3 social platform that allows you to start, fund and trade DAOs, imagine Reddit + Kickstarter + Coinbase.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

CREW3

A beginner’s tutorial for contributors, data-driven automation to reward active contributors, and active members within their app.

Truts

Truts makes it easy for people to discover the top DAOs in their field through reviews.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Discover DAOs

Find any information about DAOs and discover more new things among the many DAOs listed on the website.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

DAO’s infrastructure

These tools provide DAOs with the infrastructure to launch tokens critical to their DAOs and help them build their own native organizations.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Grape

  • Grape lets you create, reward, and secure any online community by using Solana.
  • Users gain access based on their wallet balances and the tokens they hold. Grape can be integrated with your Discord ID, so it is now possible to enter Discord of some DAOs and get characters based on the tokens you hold. Data is stored on Solana, so it’s easy to restart the community using existing people’s wallets.
  • They also finished second at the Solana Hackathon in May 2021.

Solsanctuary

Provide community-led DAOs with the tools and resources they need to take over and decentralize.

Upside

  • Upside helps to securely launch and manage tokens for Web3-native organizations.
  • Upside has helped companies such as Cere Network, Republic, DappRadar, Chingari, Freshcut create, launch and manage over 1 billion tokens distributed to over 700,000 blockchain accounts.

Talent Mobility

These are not just tools, they are the best way to learn, earn and build an ecosystem.

Here you can find full-time or part-time opportunities, grants to build any project or bring value to any idea, and bounties.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Questbook

Questbook provides a decentralized solution for grant management.

In the Guestbook, you can run grant and bounty programs for DAOs and foundations.

The Questbook also has a track called Openquest, where you can learn to program and build in Web3 using Solana, Ethereum, and Polygon.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Superteam

  • Superteam is a collaborative group of creators, developers and operators experienced in launching and growing technology businesses. SupeteamDAO can help the most promising projects in the Solana ecosystem to launch and grow in the third world (India, Southeast Asia, Eastern Europe and Africa).
  • With a membership in SuperteamDAO, you can choose to win bonuses or missions (within a certain time frame), or receive funding from some sponsors.
  • Superteam is known for its talent and amazing projects.
  • Based on Solana or looking to get into Web3 full time, check out superteam.fun and Earn.superteam.fun for job opportunities.

Layer3

  • Layer3 is a platform that allows anyone to contribute to the DAO. It provides a bounty market where you can earn tokens by completing/doing things, regardless of your skill.
  • There are multiple communities and various tasks listed as bounties on their website that people can complete to learn and earn cryptocurrency.
  • They have worked with multiple projects. They started in June 21, and so far users on LAYER3 have made over 2 million on-chain transactions, and many have already started their Web3 journey.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Productivity and Collaboration

Most DAOs struggle to accomplish their tasks efficiently. Effectively coordinating work in a decentralized setting is challenging and not easy. There must be procedures, protocols and collaboration. These tools help to do just that.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

DeWork

  • A Web3-native Trello with token payments, vouchers, and bounties.
  • $5 million has been raised from Paradigm, Pace and many investors. Multiple DAOs and bounties are often created on the platform.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

SourceCred

  • SourceCred is a tokenized protocol that allows the community to track and reward projects and community members based on flexible, self-setting parameters.
  • It is an open source tool for communities to measure and reward value creation and organize communities.
  • Helps new contributors to join the DAO easily, seamlessly and easily.
  • It’s easy to integrate with other tools and platforms of your choice and get started as a DAO.

Dialect

  • Dilect is backed by well-known investors such as Multicoin Capital, Tiger Global, Jump Crypto and more.
  • Dialect is an open source smart messaging protocol for dynamic, composable dApp notifications and wallet-to-wallet chat.
  • It provides an alternative way to communicate with DAO members in a more personal way than tools like Slack and Discord, which may increase communication among DAO members.
  • Some of these features include wallet-to-wallet chats, in-dApp notifications, emails and text messages.
  • It’s providing messaging and notifications for Solana’s biggest projects.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Reputation-Based Tools

When building a community, it’s important to have a value measurement system in place. In DAOs in particular, contributors can be rewarded with money (through tokens) and abstractions (reputation in DAOs). These tools help you earn rewards based on your on-chain reputation.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Underdog Protocol

It helps people build their on-chain network, rewarding and recognizing their biggest backers by issuing their tokens on Solana, think of it like Linkedin Kudos.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

xHashtag

  • When working with Web3 projects, xHashtag is able to help them build and grow a solid community and use a large user base for the project, ultimately giving them non-transferable achievements by rewarding them for their contribution to the project in terms of tasks and activity completion Credentials SoulSwags.
  • xHashtag is backed by Titan Ventures, SOLRAZR, KuCoin Labs, ZBS Capital and many more investors and advisors.

decision making and governance

In the context of a DAO, governance refers to the mechanism for making any type of modification to the protocol held by the DAO. Members of the DAO are usually required to own a certain number of tokens before making any proposals, and these changes are approved or rejected based on the total number of votes cast by the DAO members.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Tribeca

  • Tribeca is a protocol for creating, managing, and interacting with DAOs on Solana. It is an open source governance primitive built and maintained by members of Solana’s leading protocol.
  • Launched integrations and DAOs for many protocols, including Sabre, Friktion, Port Finance, Arrow, Acumen, and more.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

  • It is heavily inspired by Compound and Curve governance.
  • Their code is unaudited, and they haven’t been active on Twitter and Discord for a while. Tribeca can be plugged in with other Anchor-based projects and tools, allowing for greater composability.

Tools focused on payments

These tools are generally used for token distribution and vesting, as well as payroll.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Streamflow

  • Streamflow is a token issuance platform that provides teams with the necessary tools to manage their finances and easily distribute value (streaming payments and on-chain salaries).
  • TVL is over 130 million, with over 30,000 streams and over 170 tokens. It is backed by prominent investors including Jump crypto, Solana Ventures, and used by projects such as Port Finance, Hubble protocol, Jungle finance, Nosena, and more.
  • You can also build integrated systems based on Streamflow.

Zebec

  • Zebec is a continuous settlement protocol on Solana. Starting with Zebec Payroll, which enables composable transfers of value, Zebec Safe is a fully customizable multi-signature on Solana, think of it as “Gnosis” on Solana.
  • Zebec allows employees to seamlessly convert their real-time liquidity into fiat currency via a custom-made metal debit card. Audited by CERTIK, it became the platform of choice for organizations or DAOs trying to do multi-signature money management and streaming payments.
  • It is backed by investors such as Solana Ventures, Lightspeed Ventures, Alameda research and more. So far, they have partnered with Katana and Tribeca and have their own native token.
  • Developers can easily implement Zebec Pay functionality directly into your projects by using their SDK to build the Zebec protocol.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Liquify

  • Liquify makes it easier to manage token distribution, compliance, and track vesting planning.
  • Liquify is audited by trusted companies like Macro, Quantstamp, and Sherlock, and used by companies like Balancer, Indexcoop, Superare, and Snackclub.
  • Liquify is backed by investors like Dragonfly, Nascent, OrangeDAO, Robot ventures and angel investors like Balaji (former CTO of Coinbase and GP of a16z), Packy McCormick (Not Boring Capital), Anthony Pompliano (Pomp Investments).

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Manage funds

These are typically used for financial management, i.e. managing the DAO’s treasury for storing assets or providing yields from these funds. Financial management is an important part of the DAO, as it ensures the transparency of the organization. Each member can see and contribute to the direction and diversification of funds within the treasury.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Squads

  • With Squads, you can securely manage your funds, program upgrades and tokens with your DAO members.
  • More than 3000 multi-signatures have been deployed to date.
  • Audited by OTTERSEC and BRAMAH SYSTEMS.
  • Loved by the ecosystem, they recently launched the more secure V3.
  • Their SDK is classic and useful, making it very easy to interact with Squads programs.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Goki

  • Goki provides an interface for creating, managing and auditing multisig wallets on Solana.
  • Recently partnered with Cashmere Wallet, Query Protocol, Atrix Protocol and TribecaDAO Governance.
  • It’s not public yet, but you can join their waitlist on their website.

Castle Finance

  • Castle Finance offers DAOs and their communities a safer way to earn through its native custom vault.
  • The USDC vault yields about 2.8% and has a TVL of over $300,000.
  • In addition to this, Castle Finance integrates with Cashmere Wallet to provide seamless benefits to users and teams.
  • Backed by Solana Ventures, Nascent, Shima Capital and many other partners.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Katana

The Katana Protocol helps users passively obtain the best risk-adjusted rate of return in the ecosystem by providing a suite of packaged rate-of-return products across the risk spectrum.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Friction

  • Friktion provides DeFi-based, risk-adjusted return-generating strategies for DAOs, individuals, and traditional institutions through institutional-grade structured products and risk management.
  • It brings concepts like Volts and Circuits to the DeFi ecosystem, offering active and passive portfolio management strategies.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Unique.vc

  • Unique Venture Clubs is a no-code platform that allows people to pool resources, build custom on-chain governance structures, and collectively own assets. Lets you create or join a Web3 investment club to buy and manage assets on-chain.
  • They are building infrastructure and tools that allow people to pool resources together and remove financial, technological, social and trust barriers.
  • Currently supported assets are NFTs and fungible tokens, with more to come.
  • After being reviewed by ZOKYO, they are supported by investors such as Solana ventures WW ventures, MEXC, SVC, etc. Other projects such as Grape, Bonfida, Streamflow, Magic Eden, etc. all work with Unique.vc.

Cashmere Wallet

  • Cashmere wallet allows teams or DAOs to manage the treasury through multi-signature operations, and you can directly send and receive your digital assets in the team treasury.
  • The platform also integrates scheduled payments, integration across the Solana ecosystem, and Slack notifications. They also promise a fully functional SDK, which may come soon.
  • It is audited by Ottersec and trusted by funds under management from companies like Opensea, Million on Mars, Fast Break Labs and more.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

MeanFi

Teams and organizations can create cryptocurrency treasuries, issue vesting contracts to investors, and issue salaries using real-time funding streams. Mean Fi achieves this through its no-code token distribution, cryptocurrency payroll and multi-signature, as well as its DEX with HLA offering DDCA.

Backed by more than a dozen institutions and 100+ treasuries, MeanFi is another solution for treasury management, payroll operations, and token attribution.

data

These tools allow you to collect data from on-chain sources. You can analyze them for better insights.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Dune

  • Dune Analytics is a data platform that analysts and investors use to research specific projects such as NFTs, DeFi platforms, DAOs or any blockchain ecosystem.
  • Anyone can use Dune to query data and create visualizations.

DeepDAO

DeepDAO collects and organizes various quantitative and qualitative data about DAO governance, structure, people, and decision-making. It currently offers interactive data dashboards, project descriptions, DAO tool guides, and a Discord channel for governance.

Flip Side Crypto

It lists learning materials through which you can acquire and learn various things as well as data analysis and SQL.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

All-in-one tool

Crypto is built on the promise of open data for anyone to use. Not only does this make it very open, but it makes it very easy to build on top of it. In addition to the previous categories, there are tools that (mostly) provide a one-stop solution to create, manage, and operate a DAO.

Realms

  • A fully on-chain product that can implement DAO creation, voting and financial management.
  • You can invite members and vote on proposals, among other things, it has tools for money management, identity management, and analysis of these operations.
  • Realms is also managing some big projects in the ecosystem.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Some tools to watch

Tools that didn’t make the list but are worth watching.

Parasol Finance

Community-managed IDO platform, built on Solana, for investors and projects.

Celesta Labs

DAO entry and context management. For Causes & DAO, it helps to create social impact by donating tokens, you will receive Impact NFT, proving your donation on-chain.

Challenges and Opportunities

We saw tools in all categories and what problems they were solving. But one thing is for sure, not all tools can solve all the needs of a DAO, especially Solana. It also gives us challenges and opportunities.

Challenge 1: Technical challenges

1. Cross-platform collaboration

If you use a multisignature tool like Realms or Squads, then you should be able to collaborate on files with a platform like Wordcel.

2. Cross-chain collaboration and on-chain collaboration

For example, if you have multiple contributors in your DAO, but you want to publish an article on Wordcel, what would you do?

Then our solution is to integrate governance or financial management with Wordcel. If you are added as a member there, you should be able to publish on DAO’s publications.

Another approach is collaborative publishing, which allows multiple people to collaborate on any medium, and it is on-chain.

Challenge 2: Payments – the key missing piece of the puzzle

While cryptocurrencies solve payments by default, DAOs face many hurdles in managing and automating payments, often resulting in delayed payments. Sometimes, DAOs pay in their native token, which is volatile. We’ve also heard that contributors often find it difficult for them to use cryptocurrency income as a reliable source of income. Additionally, many active contributors find it difficult to get DAO projects to cover their expenses, such as SaaS expenses, travel expense reimbursements, etc. All of this results in a poor payment experience for the DAO-contributors.

Potential Solutions: To address automation, operational efficiencies through payment request linking, scheduling payments, and expense management tools are critical. An enterprise card is another solution, where all active contributors to the DAO can get a card that they can spend through the card itself for all their business needs, such as SaaS fees or conference tickets.

The Web3 counterparts of Web2 tools (like Expensify, Gusto, Brex) are not yet built, and when these tools are built, it will attract more interest.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Challenge 3: Building a Gitcoin-like funding ecosystem and platform on Solana

There are many open source projects with issues and bugs that can be fixed through bounties or community funding.

The existing bounty system results in VC investment being allocated to a specific project, which distorts the priorities of the Solana community.

Creating something like Gitcoin Grants is more of a socio-philosophical question than a technical one. Most Ethereum projects like Uniswap, Aave, and Polygon participate regularly because of their strong belief in supporting public goods. Essentially, their views are aligned with those of the Ethereum community.

And until now, we haven’t seen any kind of movement around public goods on Solana. This is a priority, and a better ecosystem needs to be built at the same time.

Solana Ecological Observation: A Comprehensive Inventory of DAO Tools and Challenges and Opportunities in the Ecosystem

Challenge 4: The legal structure of the DAO

How does a community achieve legal clarity?

DAOs are similar to many organizations such as corporations, nonprofits, partnerships (both general and limited liability), and cooperatives, but these organizations are regulated and governed by the rules of their region.

Whereas DAOs are not, they are purely decentralized, lack a specific location, and the governing rules are not specific to any existing legal framework. Today, DAOs from all over the world struggle with regulatory issues such as taxation of DAO tokens, treasuries and investments, how to obtain insurance for investments, implementing other policies, etc.

While this isn’t exactly a question of tools, once any has some legal clarity, it will be a precursor to a plethora of tools that meet the legal needs of DAOs.

Challenge 5: HR Solutions for DAOs

I know you might be thinking, are we back to Web2 again? No, there is more to it.

In addition to the legal challenges of a DAO, there are also complicating factors such as recruiting, onboarding, and managing the team.

Since DAOs are new, it can be difficult to find and vet the right people to work in DAOs. A DAO without an associated organization must also figure out how to address the legal complexities of connecting with talent when there is no counterparty to sign an employment agreement with the talent or guarantee that the talent will not reveal confidential information.

The DAO’s team found it tedious to convey institutional knowledge to new members, so the DAO’s seniors were still in charge of most of the business. Due to the rapid transformation of the DAO, it is difficult for these companies to document their internal procedures and thus have difficulty accepting new members.

After onboarding, the DAO core team must determine how to manage people, which can be difficult in a flat structure, and even more difficult when a group is trying to portray itself as highly decentralized.

in conclusion

Tools cannot solve problems for communities without a shared system of goals, intentions, and values. While the market for DAO tools is still small, the space will continue to grow. It’s like establishing the protocol first and then the application. Likewise, we believe that the tools will be built first and then the native organization of DAO/Web3 will be built with the help of DAO tools.

DAO tools will inherently attract many organizations to Web3 as they become more efficient and we are excited to see how Web3’s organizational stack is built.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/solana-ecological-observation-a-comprehensive-inventory-of-dao-tools-and-challenges-and-opportunities-in-the-ecosystem/
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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