The most important part of a DAO is the culture. This is almost like the constitution - a shared culture of what it means to be part of the DAO. I thought I’ll start the conversation of what it means to be in CR8R DAO by doing up this summary of summaries.
Basically, I summarised all the DAO related posts from TheReadingApe to give this essence of what is a DAO and what it means to be in one. Added a few thoughts of my own too. The most relevant one is the one from Talking Crypto Ep #62 with Cooper Turley.
References are given below.
- What is a DAO?
“DAOs are internet communities with a shared cap table and a bank account.” - Cooper Turley
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The merger of social world and working world
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Working with friends doing the things we love to make an impact on the world and get paid at the same time
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The value of a DAO is not based on TVL like DeFi protocol
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If you have a group of dedicated people who spend their time on the DAO every day attending community calls and improving the DAO, that itself is the value
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The value can be derived financially using cashflow models, but the real value comes from the strength of the community
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Sometimes not having a cash flow valuation will end up having a strong value because cash flow is just one part of a large equation
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That being said, if we have actions or cash-flow that can be measured on-chain, the value of our tokens and the DAO will increase
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Permissionless work
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Flat hierarchy
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There is no more taking instructions from higher-ups, though there might be a guideline
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Respect is earned not bought
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Permissionless work comes with greater responsibility, not less because there will be no one looking behind your back to see if your work is of standard.
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Work that you are proud of
- When there is no one looking, are you able to give your best because of personal pride in your work?
- Why is token an important part of DAO?
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Token has an ownership element
- This is the core premise that transforms a mere chat group into a more sophisticated vehicle with financial upside from the work contributed
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Usage of tokens
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Token gated access - need to hold a certain number of tokens before the user can access the community or channels
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Access to NFT that cannot be bought but earned through participation
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The “Crawl, Walk, Run” model for usage for tokens/NFT
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Crawl - just giving tokens to the biggest fans for their support
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Walk - explore a purposeful token to incentivize specific types of actions that are aligned with the DAO
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Run - tie in with DeFi or staking protocols, airdrops of exclusive badges, NFTs
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- Organising a DAO (from Cooper Turley)
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The first hire of the DAO will be to have a key operator whose sole mission is to coordinate everyone in the DAO
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They get a pretty generous salary and a token allocation for running the daily operation of the DAO
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There will be a team lead meeting weekly, where the top representative of different divisions comes together to share with others what they are working with
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The team leads are responsible for organizing within their own groups. They will be given a budget and the number of tokens to distribute to the people working with them
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Every other week, there will be town halls to keep people informed of what is happening from a wider perspective
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This arrangement worked across all the DAOs he had been with
References:
- Alt Asset Allocation ep 54 - DAOs, NFTs, Social Tokens - A Crypto Landscape Update with Cooper Turley
- Bankless - The Creator Economy with Jesse Walden, Li Jin, Cooper Turley
- Zima Red ep 61: Jess Sloss - Creator revolution: social token incubator bringing the next billion into crypto
- Talking Crypto #62 - Coopahtroopa
- Bankless - Building A Decentralized Blackrock - Index Coop (SotN 7/27)
