Search Engine Optimization: Evaluate How to Run DAO in 3 Steps

DAO for the future

Frankly, DAOs are the future of your organization. The elements of Decentralized Autonomous Organization (DAO) have been around for a long time, but this is finally the time when those elements have come together to create something greater than the whole.

COVID has allowed us to find many professionals who already know: division teams can work well. Compound, Gitcoin and other groups have found they can integrate these groups into the community and make decisions.

So does this mean that every startup should create a DAO?

It's not perfect.

First, not all businesses are eligible for DAOs (e.g. Shopify's stock store). Although necessary, there is still some work to be done before the first vote.

DAO is a community. The community creates a shared vision and develops the role of how to make that vision a reality. Hector Espinal created Our Run Uptown around a shared responsibility "to create a network that supports and empowers New York City staff to do their best and marvel in the process."

But that's not why he ran away from Washington Heights neighbors with him. Instead, he posted on Facebook, "Between 168th Street and Broadway. We'll run across the bridge."

People who join the Hector team know exactly what they will be doing (running) and with whom (communities). They all have their own reasons, but a deal has to fit.

The same goes for DAOs. You can't get started until you understand what the project is, how to do it, why, and if others are also interested in these ideas.

In addition to a sense of community, DAOs need governance and support. You will need to create scaffolding when the community builds it. Managing and supporting the vision of communication models, explaining DAO practices, and ultimately becoming the primary reasons people participate.

So if it's not day one, when should you start building your DAO? Venture capitalist A16z Jesse Walden gives the following answers:

Can I have decentralization

Walden thinks cryptocurrency startups should gradually decentralize.

"...And a lot of the things it takes to build a good product from the ground up - the culture of the product, the rapid changes, and the company's difficult time management. For the way for community members and conformity, but keep the voice for a long time."

Building communities around ideas without experimentation interferes with the most important task: experimental ideas. To avoid this error, Walden recommends the following three steps:

Find suitable products

Building a strong community

Proceed to Community Membership

Walk to the entire DAO

Find suitable products

Things move fast and change direction quickly. Works in sprint mode. Interpret the problem, configure and test the solution. The core team can adjust and iterate until the product is market-ready.

Concentration and rapid repetition are essential. In order to improve the speed, you need to make it small and fast. Walden said the cast should not be decided at this point.

Community involvement

Here you can see your business and solve real problems for many. Your product is still standard, but consumers still demand it. Some even ask about undesirables. It's time to start building your community.

Even if the DAO is not in the plans, the community is a good idea. There are two main reasons.

Get customer feedback to help refine your product.

Keep customers in touch. It is an easier option for consumers to avoid using products that are not liked by the community.

In Web2, companies create communities to profit from it. For example, Coda, the documentation app I used to write this article, has an online workspace where people can share designs, create projects, and share experiences. The members have benefited from this intervention, but the most important concerns Coda. Mining forums for case studies, comments and suggestions. In return, users can pay for items they help improve.

If that sounds like an effort, real community is voluntary. But things don't have to be that way.

In Web 2, companies and communities are two distinct groups. In Web 3, it can be a.

If Coda decides to use the DAO method, it can do the following:

Allow community members to contribute to product development.

Establish community management and support.

We reimburse you for member involvement (like designing, creating operations).

Tokens have been introduced to help change the value of people in the community.

Community members

All the hard work from the first two stages is done in this phase. The research team gives you control over the entire community. Current Token holders will make all decisions regarding the future of their organization.

Management and support are the biggest issues in moving from being a support function but out of the community to being a DAO function. Regardless of the amount of work done in the previous steps, it is up to the community to develop policies and procedures that support governance standards and allow DAOs to manage the entire industry.

In addition to day-to-day operations, there is competition in managing existing business owners, employees, taxes, and growing businesses. Most states and countries do not recognize DAOs as legal entities. Do you want to register your DAO as a Limited Liability Company (LLC) or join Wyoming? How do you handle pay cuts and lawsuits based on the choices you make?

I don't know all the answers. Honestly, I don't think anyone knows. As the examples below show, designing the right model can take many years, usually more than three years.

What the others are all DAOs

Gitcoins

In 2017, Scott Moore and Kevin Owocki launched Gitcoin, a platform to fund the development of public domain products for Web3. Earlier this year, Owocki explained that many happy jobs weren't created for one simple reason: no early-stage funding. To solve this problem, Moore and Owocki developed a program to help developers develop open source software for Web3.

Gitcoin will only become a DAO in May 2021 when it launches the GTC (Governance Token). Over the past four years, Owocki and Moore have been busy translating problems, developing solutions, and building a community of developers and sponsors. With all of the above in mind, the team needs to establish a foundation for community governance and a way to hold the DAO accountable. The announcement of the GTC is the end of all these efforts.

AW

Stani Kulechov acquired ETHLend in 2017 as a decentralized peer-to-peer lending platform.

A year later, Kulechov and his team changed their business model to a lakeside business. They also changed the name to Finnish AAVE for "monster".

AAVE will not work under DAO until 2020.

What did Kulechov and his team do during those three years? They improve the company structure, rebrand and validate the market fit of the products. After taking office at AAVE, I decided to become CAO.

Ua Dao

MakerDAO was established in 2015 as a founding foundation. Rune Christensen announced the prospect of creating an e-Dollar to support exchange rates on the Ethereum network. The problem Christensen is trying to solve is one of the problems we still face today. Cryptocurrencies are essentially unchanged for devices used in modern businesses. Cryptocurrencies need stablecoins.

A few years later, Christensen disbanded the Maker Foundation, released a limited-edition stability coin, launched the DAI, and paved the way for the creation of the DAO. You can read the full version of Maker's Journey here.

MakerDAO, like many others, became a DAO through achieving successful growth. However, this method is not always effective.

When the slow pace of decentralization leads to misunderstanding

Progressive distribution is best for layer 2 applications. For the most part, they follow Ethereum and use smart contracts. Most DeFi and Web3 applications fall into this category. However, some business models require distribution from the start.

Layer 1 Protocol

Basically, projects like Ethereum, Solana, and Polkadot need a community of participants from the start. The real reason they are there is to provide solutions that use decentralized blockchain technology. A network that works without centralized administration.

If the founders of Ethereum had all the power to decide, they would not have succeeded. It's untrustworthy and unauthorized, it could be another Amazon or AirBnB site where people work within the confines of the decision base.

Value of blockchain networks in decentralization. So you have to optimize it from scratch.

Social clubs and budgets

Without Web3, LAO would be venture capital (VC). PleasrDAO ever.

The success of LAO lies in the fact that its partners are involved in cryptocurrency campaigns. In a traditional global business environment, LAOs would have combined general partnerships (GPs) to limit partner (LP) investments in the funds. GPs are responsible for investing their money and returning it.

These models operate in a world where LPs are dissatisfied with the day-to-day operations of the fund. Many LPs take this approach and don't need to be involved as long as the revenue is promised to come back and manage the same risk.

However, frequent LPs who don't want to limit themselves to banking should look elsewhere. Decentralized organizations such as AJO and Meta Cartel were created for them.

You cannot use LAO without DAO. Through design, it relies on a network of people with various professions: entrepreneurs, researchers, trainers, developers. They work together to create great plans for the future.

The same goes for PleasrDAO. Her site is affiliated with digital art. It comes together as a group with a common goal. The Collector's Club is available in the offline world. However, they seem to rely on a central direction and often have fewer members. Thanks to a tweet, PleasrDAO has joined forces for the purpose of its distribution and most anonymous members now own some of the most important NFT artwork in the world, but never establish a base.

Plans like LAO and Ethereum didn't benefit from the distribution's routine approach, but they weren't fully integrated in the first place. In the future, there should be a small group of passionate creators.

In Infinite Technology, Camila Russo describes how Vitalik Buterin is working on a project with Gavin Wood, Charles Hoskinson and Anthony Di Iorio. Each role is different, but together they make important decisions regarding business formation, legal registration, token issuance, and more.

According to Russo, the first period of Ethereum was not good. Controversy and opposition are common. Most of the early founders were out of the project in a state of conflict. Although the founders get along well, the beginnings are difficult. Things get harder when trying to get started with DAO.

The story of the DAO is well known in the crypto space. In the weeks following the launch of Ethereum, hackers were able to withdraw millions of ETH tokens due to viruses in a smart contract. During the protest, scholar Quinn DuPont said, “We see the vision of future models of governance that will break down and degenerate into cultural norms, using social norms. “We argued and disagreed without looking at a single line of code.

Therefore, it is important to be clear about the procedures and timelines for moving to community governance, understanding what a shared vision is, and achieving community support goals.