Things to know before creating a DAO; the role of subDAO.
Imagine;
· Not working in an office and still getting paid
· You work whenever you feel
· Answering to no boss, because you work for none
· However, that you work for millions of people all over the world — People you know nothing about! All you need do, is finish the task you are assigned and get paid.
If this sounds interesting, well, read on… this is what working with a DAO (Decentralized Autonomous Organization) feels like.
A DAO is an organization that operates on the blockchain, working in accordance with its own set of rules, possessing no hierarchical structure, no central authority and is managed by its own members in a group of networks. As more members join the DAO, the group gradually expands. In reality, no single member will have authority over another member but different members may possess more voting power.
It is very easy to join a DAO; as easy as buying some native digital currencies (tokens/coins) and automatically becoming a member. This particular step is the most important and will require utmost attention during DAO creation.
DAOs can be created for various reasons; these reasons are highlighted in the form of TYPES of DAOs. These may include:
- Protocol DAOs
- Investment and Venture DAOs
- Collector DAOs
- Social DAOs
- Philanthropy DAOs
- Grant DAOs
- Media DAOs
- Sub DAO (not to be confused with SubDAO)
Now that you understand what DAOs are about; thinking about creating one, deep-dive into this guide to find out how to go about it.
1. ESTABLISH OBJECTIVES OF THE DAO: Understand the reason for creation of your DAO. For example, you can create a DAO to support and help promote new and emerging projects on web3. DAOs are created with purpose, any purpose, even if it is to predict football games and winners are rewarded. Sounds like crazy ideas.
DAOs’ ecosystem have grown so large consisting over 100 projects that representing each own purpose, from collectively buying expensive NFTs (e.g. The DAO) to providing liquidity (e.g. UniSwap) as well as funding emerging projects (Venture DAOs, e.g. The LAO).
2. FIND AND BUILD COMMUNITIES: Finding a community on web3/crypto is difficult, but building one is even more difficult. Lots of DAO communities already exist and new ones are springing up daily; it all comes down to distinguishing yours from the crowd. To be distinguished, you can do any or both of the two:
· Have an almost-unheard-of idea
· Convince people that your idea works/will work.
Asides these, understand that the Crypto-verse consists two (2) types of people; the speculators and the settlers. The Speculators just want to make money i.e. get in when price is high and get off when price is high, while the Settlers settle with cool projects and commit for long. To set up an effective community, connect more with the settlers.
3. UNDERSTAND THE PRINCIPLE OF GOVERNANCE: In a DAO, governance is distributed among members of the organization. Every member can vote on decisions to be taken in the DAO. To start, the creator of the DAO can set the underlying/basic rules in line with the objective of the DAO. As significant number of members join and number increases, details of these rules and new rules can be added.
4. SMARTCONTRACTS AND DEPLOYMENT: Smartcontracts are basically computer programmes/codes on which decentralized application e.g. DAOs, operate on. It is a popular knowledge on web3 that smartcontracts are immutable i.e. these contracts cannot be changed once deployed. Before the rules of DAOs are deployed, it is pertinent to understand what these rules will look like in managing conflicts. For deployment, there are several ways to do it; to avoid too much technicalities, save time and resources, you can rely on pre-existing DAO tools — this is what SubDAO specializes in.
These four (4) key points are the fundamental for creating a DAO. To learn more about DAO tools, the latest DAO news, functionalities, deployment and other details, you can follow subDAO on twitter, join the telegram chat or follow subDAO’s medium.
WHAT IS SUBDAO?
SubDAO, a multichain DAO protocol solves the problem of creation and management of a Decentralized Autonomous Organization. By offering tools to build, subDAO lowers barrier of migration from web2 into web3. The tools/services that subDAO offers, ranges from digital assets management, DAO social networking, DAO templates and more.
Connect with subDAO with the links below: