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Hodlon
@hodlon
Introducing: The Living DAO, a more dynamic model for decentralized autonomous organizations
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Hodlon
@hodlon
Most DAO’s start with an idea. A group of like-minded individuals coalesce around a vision. They share some values and the desire to explore the whacky world of distributed organization— behold, a DAO is summoned!
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Hodlon
@hodlon
Very quickly the product/service/output becomes central to the day-to-day function of the DAO, with most (if not all) resources internally gravitating towards it.
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Hodlon
@hodlon
Making decisions as a group (ie, governance) is copypasted from an existing model and maybe addressed as needed. Onboarding is optional and self regulating— show up, figure it out and contribute, or not.
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Hodlon
@hodlon
This is understandable, as the product is what defines the DAO from the outside. It’s an easy way to measure success and provide clear, tangible contributions to the community or client.
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Hodlon
@hodlon
If we envision a DAO like a stack with the product on top (what it does, value to community); membership below that (defined roles, awesome docs, effective methods of consensus); and onboarding on the bottom (ability for newcomers to find a role, reputation, healthy general chat), then we have something like this:
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Hodlon
@hodlon
Contributors enter through the bottom and move up the stack as they participate. Membership can’t exist without people, and the DAO can’t output things if its members aren’t able to come to agreement.
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Hodlon
@hodlon
Now we can represent a product focused DAO with the following diagram:
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Hodlon
@hodlon
Issues begin to arise when too many resources are focused on the top of the stack and not enough anywhere else. Excited, talented people show up ready to contribute— and can’t figure out how to. They quickly bounce out and take their skills elsewhere.
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Hodlon
@hodlon
The members who do stick around face issues with consensus— the model is broken, gameable, or simply doesn’t fit the needs of the community and isn’t easily adjustable. Perhaps incentives are adversely skewed and power accumulates in weird places. Maybe nobody can agree on how to agree in the first place.
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Hodlon
@hodlon
Enter the Living DAO
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