Community Governance
Whether DAOs are used to build products (Sushi), invest (The LAO, MetaCartel Ventures), collect NFT (FlamingoDAO, PleasrDAO) or provide services (RaidGuild, LexDAO), they are all vulnerable to the same high-level challenges that affect the growth process.
How to lower the threshold for meaningful contributions. Since contributions to a DAO can come from anywhere, tools that qualify and quantify different types of contributions (e.g., bounties, DAO-specific metrics) can be used to build a common understanding of prioritization, i.e., how people can expect to be rewarded for different levels of participation. In addition to monetary compensation, DAOs can use reputation-building tools to incentivize value-aligned participants to take on more ownership and grow with the DAO.
How to maintain operational efficiency while decentralizing. In the long run, decentralization should not come at the expense of efficiency. Progressive decentralization allows the initial team to find market-ready products on the path to trusted neutrality. We will explore examples of DAOs doing this through constrained delegation and workgroups, as well as tools that provide additional layers of checks and balances to hold executors accountable to token holders.
How to coordinate decisions at a scale. Voting tools help individuals express their opinions, fund programs they care about, and empower their trusted representatives to execute in a way that is consistent with their views. The key to these decisions will be relevant and accessible information. Analytics tools and data aggregators play an important role in making DAOs readable and presenting meaningful insights from raw up-chain and down-chain data.
The Community DAO smart contract standard is inherently well suited to facilitate our governance goals by virtue of several features:
Membership is Permissioned
Membership Admission is Permissioned: Membership for Community DAO is a permission process that reflects the wisdom of Community DAO's existing membership. Before new membership proposals are submitted on-chain and voted on, candidates must first be championed by an existing member of the DAO and undergo internal member-driven evaluation where various aspects of their membership are considered: culture fit, expertise, etc...
Continuing Membership is Permissioned and Community-Policed: For a person to continue being a member of Community DAO, that person must implicitly have the consent of an economic majority of Community DAO members. Any member may at any time propose that another member be expelled from the DAO, and if that proposal is approved by sufficient other members, the person will lose their DAO shares and governance rights while receiving (through the mechanism of RageQuit) payment tokens representing their percentage of Community DAO's property.
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