Here I come again pretending I have any idea about how stuff works…
If we oversimplify things in order to make them easier to understand, I believe there are a couple of ways to build a DAO.
There can be many components and structures to a DAO, but one element is of most importance and essential to keep things running: creating value.
You can use this as a starting point in your journey: identify a need, build a product to fulfil that need and thus create value. Your product might be an exclusivist one or even a public good, it doesn’t really matter, everything that counts is creating value for an existing market. That’s not an easy feat, but let’s suppose we are already past that point. What’s next?
Well, if you give two fucks about decentralisation, new organisational structures and the ability to scale indefinitely (or fail miserably… after all, we don’t know for sure yet), you will probably think about encapsulating your successful product in a DAO.
This is basically what ENS did.
They were able to create an outstanding product and once that was proven worthy in the market, probably because nick has weird cryptopunk blood flowing though his veins, they decided that product should be governed by a DAO.
There are some easy to spot disadvantages to this strategy, like… building an outstanding product and proving it’s worthy in the market. That takes a whole bag of skills, effort, money and luck.
What if we turn the entire strategy upside down though?
This is what other DAOs are trying to do, ourselves included.
First step is making yourself heard and building a community around yourself. We must be immensely grateful to the bootstrapping team for taking up this task and doing excellent work.
Once you reach a critical mass in your community, considering the scale at which you’re planning to launch, you can build a DAO. I think the bootstrapping team accomplished this task with great success as well. Our (at least mine) initial goal is to put Romania on the map in the crypto space. We might not be in the tens of thousands, but I feel we already reached the critical mass for that task. After all, there are lots of very smart people here, and that’s not something to ignore.
At this stage, your DAO is nothing more than a chatroom. You need to nurture your community, empower it and later give it room to grow. I think we’re somewhere at this stage, my gut feeling says somewhere in the second half of it.
This is the stage where we all need to figure out how we can create value. That was the essential ingredient, remember?
This is not an easy task for anyone involved, and in some cases, might be even more difficult than building the product yourself and launching the DAO afterwards. This is a long and difficult process which involves finding an organisational structure, having everyone agree with it, finding research areas, having everyone agree with it, building teams, having everyone agree with it, doing the actual work, having everyone agree with it, compensating that work, having everyone agree with it… You get the point.
At this stage, the way decisions are made is something which impacts EVERYTHING.
That’s exactly why we have a tool and a process for that: governance voting.
The entire process of creating value needs lots of decisions and what sets this DAO strategy apart is that it’s built in a decentralised manner from the ground up.
This is, in short, our bet. That we can organise ourselves to build a successful product, whatever that will be, from the ground up, with close to no hierarchy and upper level management decisions.
The one, only, and most important tool at our disposal at this stage is governance voting.
Everything that counts is governance voting.
The only important thing is voting power.
The reasoning behind these bold statements is that we don’t really have a product yet. We are not creating value yet. That’s what we plan to do and to reach that goal we plan to do it in a decentralised organisation, using voting power.
It makes no sense to judge your voting power in terms on dollars. In essence, there is nothing backing up that voting power yet. It did not reach its’ financial potential yet. Buying and selling tokens at this stage is more or less speculation on the DAO’s ability to deliver in the far future, but that’s way more speculation than an educated guess considering a clear path to a valuable product is not defined yet. Would you trade stocks of a company which just started, rented a space and is getting its’ first hires?
Sorry, coming back to building a DAO…
You need to nurture your community, empower it and later give it room to grow.-me, two paragraphs above
I think once your community starts showing its’ first signs of maturity, it is important to give it space to grow. Let it try things, let it fail. Let it debate, let it decide. The only tool the community has is its’ voting power… and lots of enthusiasm.
I’m just a dumb guy sharing dumb thoughts, but I think everyone should stop thinking in terms of dollars and start thinking in terms of voting power. Whoever wanted to sell, already did. Whoever wants to stay, is staying even after a -90% drop. It’s clear to me that this moment is one of cleansing, where people who do not understand or agree with the concept of a governance token are jumping ship while people who do understand are building more, faster and more organised than ever. It does not make sense to me to worry about whoever came for the financial incentives and downplay the hard core believers. We need a product and they are the ones who will build it.
At this stage 1 STANDARD = 1 STANDARD = 1 vote.
The builders need 35% cvorum.
How will they get there, I don’t know, but I will make it my priority to figure it out.
I’m reiterating, I’m just a dumb dude with opinions. I might be right, I might be wrong and my opinions might change in the future. We’ll live and learn. This post has no hidden meaning, is not addresses to anyone explicitly and I hope is not interpreted as doomy, because it’s not.