How can DAOs be sustained on Blockchain?

1 Design principles

One of the first steps to sustain a DAO is to define its purpose, vision, and values, and embed them in its design. A DAO should have a clear and coherent identity that guides its members and aligns their incentives. A DAO should also have a flexible and adaptable structure that allows it to evolve and respond to changing needs and circumstances. A DAO should also have a transparent and accountable mechanism for decision-making, resource allocation, and conflict resolution, that balances efficiency, legitimacy, and participation.

2 Development tools

Another essential factor for DAO sustainability is the availability and quality of development tools that enable the creation, maintenance, and improvement of DAOs on blockchain. These tools include frameworks, libraries, protocols, standards, and platforms that provide the functionality, security, and interoperability of DAOs. Some of the popular tools for DAO development are Aragon, DAOstack, Colony, Moloch, and Gnosis. These tools offer various features and benefits, such as modular architecture, governance templates, reputation systems, voting schemes, and funding mechanisms.

3 Community engagement

A third aspect of DAO sustainability is the level and quality of community engagement that supports and enriches the DAO. A DAO should have a diverse and inclusive community that shares a common vision and values, and contributes to the DAO's goals and activities. A DAO should also have a strong and vibrant culture that fosters trust, collaboration, and innovation among its members. A DAO should also have a effective and respectful communication channels that facilitate information exchange, feedback, and learning within and outside the DAO.

5 Scalability and resilience

A fifth element of DAO sustainability is the scalability and resilience of the DAO's operations and performance on blockchain. A DAO should have a scalable and efficient infrastructure that can handle the increasing volume and complexity of its data and transactions, and optimize its costs and benefits. A DAO should also have a resilient and robust system that can withstand the technical and social risks and threats that may compromise its security and functionality. A DAO should also have a backup and recovery plan that can restore its normal operations in case of emergencies or disasters.

These are some of the key aspects of DAO sustainability on blockchain, but they are not exhaustive or definitive. DAOs are a dynamic and experimental phenomenon that require constant learning and improvement. DAOs are also a collaborative and participatory endeavor that require the involvement and input of their members and stakeholders. Therefore, DAO sustainability is not a fixed or static goal, but a continuous and evolving process that depends on the creativity and commitment of the DAO community.