How can you use DAOs for better Web3 governance?

1 What are DAOs?

DAOs are essentially networks of self-enforcing agreements that run on a blockchain, and that can execute actions based on predefined rules and inputs from participants. DAOs can have different purposes, such as providing public goods, funding innovation, curating content, or organizing social movements. DAOs can also have different structures, such as hierarchical, flat, or modular, depending on how they distribute authority, roles, and responsibilities among members. DAOs are powered by tokens, which can represent ownership, voting rights, reputation, or incentives within the organization. Tokens can also be used to align the interests of members and stakeholders, and to reward contributions and participation.

2 Why use DAOs for Web3 governance?

DAOs offer a number of advantages for Web3 governance, such as transparency, autonomy, inclusivity, efficiency, and innovation. Since DAOs are built on a public and verifiable ledger, anyone can view and audit their actions and transactions, as well as hold them accountable. Additionally, they are independent and self-sustaining, so they do not require external authorities or intermediaries to function or enforce their rules. Furthermore, they are open and permissionless, allowing anyone to join and participate in the organization regardless of identity or background. Additionally, DAOs are automated and scalable so they can execute complex tasks without human input. Lastly, they are adaptive and experimental so they can evolve their governance models based on feedback and data.

3 How to join or create a DAO?

Joining or creating a DAO can be done in a variety of ways, depending on your goals, preferences, and skills. For example, you can join an existing DAO by browsing platforms such as DAOhaus, Aragon, or DeepDAO, and then follow the instructions and requirements to become a member. Additionally, you can create a new DAO by using a framework or template such as Moloch, Colony, or DAOstack and customizing it to your specifications. If you prefer to use a DAO creator tool, you can use something like DAO-Canvas to design and visualize your DAO before launching it. Lastly, you can also fork an existing DAO by copying and modifying the code and parameters of an existing one and deploying it on a blockchain.

4 What are the benefits of DAOs for Web3 governance?

DAOs can provide many benefits for Web3 governance, such as empowering users and communities to have influence over the platforms and protocols they use, as well as enhancing collaboration and coordination among diverse actors. Additionally, DAOs can promote diversity and pluralism while solving collective action problems, like public goods provision or collective bargaining. Furthermore, DAOs can foster innovation and resilience in Web3 by enabling experimentation and creating feedback loops for improvement. Ultimately, this can lead to a culture of trust, cooperation, and mutual support.

5 What are the challenges of DAOs for Web3 governance?

DAOs present a number of challenges for Web3 governance, such as technical complexity and risk, legal uncertainty and liability, social and ethical dilemmas, and human and cultural factors. The underlying blockchain can be vulnerable to attacks, bugs, or failures, creating legal risks and liabilities for participants. Furthermore, DAOs require a high level of technical literacy and competence from participants, which can create barriers to entry or participation. Moreover, they are subject to social and ethical dilemmas such as power imbalances or governance capture. Finally, DAOs are influenced by human and cultural factors such as emotions, biases, norms, or values which can lead to difficulty in maintaining cohesion among participants.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?