Decentralized autonomous organizations (DAOs) are a new form of collective governance that use blockchain technology to enable transparent and democratic decision-making. DAOs can have various purposes, such as managing funds, coordinating projects, or creating social impact. But how can you participate in DAO governance and contribute to their vision and values?
The first step to participate in DAO governance is to join a DAO that aligns with your interests, skills, and goals. There are many DAOs to choose from, each with its own mission, culture, and rules. Some examples are MakerDAO, which issues a stablecoin called DAI, MetaCartel, which funds and supports Web3 projects, and Bankless DAO, which educates and empowers people to live without intermediaries. To join a DAO, you usually need to acquire some of their tokens, which represent your membership and voting rights. You can buy them on exchanges, earn them by contributing to the DAO, or receive them as a reward or grant.
Added to this, some projects offer DAO membership exclusovely or together with tokens as an added incentive to their earliest adopters. So perhaps, one way to get into a DAO is to look out for early stage pre-launch projects with DAO membership as an added incentive.
To participate in DAO governance, start by acquiring the relevant tokens associated with the DAO of your choice. Set up a compatible wallet and join the DAO by interacting with its smart contract on a blockchain network like Ethereum. Stay informed about the DAO's activities through forums or communication channels, and actively participate in discussions. DAO governance often revolves around proposals, where members can vote on decisions ranging from funding allocations to protocol changes. Engage with these proposals, express your opinions, and cast your vote based on the number of tokens you hold, thereby contributing to the decentralized decision-making process of the DAO.
Most important is that you have a personal commitment to socio-economic solutions that fosters transparency, decentralisation and financial inclusion.
The second step to participate in DAO governance is to learn the DAO rules, which define how the DAO operates and how decisions are made. DAO rules can vary widely depending on the DAO's design and objectives. Some common elements are the governance framework, which specifies the roles, responsibilities, and processes of the DAO members and leaders, the voting system, which determines how proposals are submitted, reviewed, and approved, and the treasury management, which regulates how the DAO funds are allocated and spent. You can find the DAO rules on their websites, forums, or documentation.
In reality, it is crucial to understand the DAO rules before you pledge full membership. Pretty much like you'd read a terms and condition detail before clicking 'I agree.' Also, look out for DAOs with unfavourable opt-out clause in their rules.
The third step to participate in DAO governance is to engage with the DAO community , which is the core of any DAO. DAO communities are composed of diverse and passionate people who share a common vision and collaborate to achieve it. You can engage with the DAO community by joining their communication channels, such as Discord, Telegram, or Twitter, attending their events, such as meetups, workshops, or hackathons, and providing feedback, suggestions, or support to other members. Engaging with the DAO community can help you learn more about the DAO, build trust and reputation, and find opportunities to contribute.
The fourth step to participate in DAO governance is to propose or vote on initiatives, which are the actions that the DAO takes to fulfill its mission and goals. Initiatives can range from simple tasks, such as updating a website, to complex projects, such as launching a new product or service. To propose an initiative, you need to follow the DAO's proposal process, which may require you to submit a formal document, present your idea to the community, or request a budget. To vote on an initiative, you need to use your DAO tokens, which may have different weights or conditions depending on the DAO's voting system.
The fifth step to participate in DAO governance is to monitor and evaluate the outcomes, which are the results and impacts of the initiatives that the DAO implements. Monitoring and evaluating the outcomes can help you assess the performance and progress of the DAO, identify the strengths and weaknesses of the DAO, and suggest improvements or changes for the future. You can monitor and evaluate the outcomes by using the DAO's tools and platforms, such as dashboards, analytics, or reports, or by participating in the DAO's feedback and review mechanisms, such as surveys, polls, or audits.
The sixth step to participate in DAO governance is to explore and learn more, which is the continuous process of discovering and expanding your knowledge and skills about DAOs and blockchain. DAOs are constantly evolving and innovating, and there are many resources and opportunities to learn from them and with them. You can explore and learn more by reading blogs, articles, or books about DAOs and blockchain, watching videos, podcasts, or webinars featuring DAO experts and practitioners, or enrolling in courses, programs, or certifications that teach you the fundamentals and best practices of DAOs and blockchain.
Some DAOs have mechanisms in place to weed out inactive members, so be sure to look out for that in the rules. Don't be afraid to have and share your different views in a DAO. The purpose of a DAO is ultimately defeated when plagued by group think. You can start up your DAO unrelated to crypto as well, because on a basic level, DAOs are just crowdfunding platforms offering donors decision-making power over their funds.