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How to run a DAO organization?

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Moledao and AstroX jointly held the first round table in Chinese area, and many big players discussed the community operation of Web3.

Pure Dry Sharing | How to Run a Community in a Web 3.0 World?

Source: Moledao

At 8pm on June 26th, Moledao and AstroX co-hosted the first round table in Chinese area, which focused on the community operation of Web3. Guests included Dolores @force_IPFS (Force Community Manager), Mosher@ Astro_Network (AstroX Operation Manager), and TY @tyoutliers (OutliersDAO core Contributor /Director), Blockpunk @Blockpunk2077 (ICPL founder)

The following is a brief overview of the symposium:

一、DAO 的起源是什么？

DAO's origin (TY) :

In 1994 Kevin Kelly's Out of Control depicted the hive mind. (Hive mind is a kind of collective mind, a vivisystwork of highly connected independent units, now commonly used in computers and the Internet.)

So the DAO is a leaderless decentralized organization that developers hope to implement in an ideal future. Like a swarm of ants, ants are creatures that use the collective wisdom of one. One ant can't do much, but behind a swarm of ants, there is an invisible hand that controls the whole colony and allows them to accomplish a lot. This central theory in economics is called the invisible hand.

The DAO concept came from one of bitcoin's core developers in 2016. The DAO started in April 2016. The DAO wanted to be a leaderless, employeeless, borderless organization that operated with smart contracts. It raised $12 million. But two weeks later, hackers used a flaw in Ethereum to make off with ethereum money. Saved the damage, but eventually collapsed, and the DAO disappeared at that point, only to be noticed again in 2021.

If you want to understand DAO, you can look at democracy and corporate system. In the history of human development, you will understand what DAO is and how it works. The DAO is like the direct democracy of ancient Greek city-states.

二、DAO 社区与传统组织社区的差异是什么？

Definitions and differences between the DAO community and the traditional organizational community (Mosher) :

Definition:

The ideology behind both the DAO community and the traditional organizational community: the traditional organization or brand community starts with concrete goals and abstract results, while the DAO community starts with mission and community culture.

Differences:

(1) Start-up form

In traditional organizations or brand communities, bosses make decisions and issue instructions to members, set up project teams, initiate planning, and push implementation.

In the DAO community, the pyramid structure is largely negated, with no bosses in the traditional sense and no concept of "employees." Working in the DAO is based on the premise that "everyone actively demonstrates his/her special abilities and contributes to the project" and that participants are always "proposers" and "contributors." You can build a community around a topic, develop a product or solve a specific problem on the product line, realize a change in the world (climate, education, science, etc.), realize a big vision (for example, build a bankless metasomes)

(2) & have spent Quasiphysical form

In his book Starfish and Spiders, Ori Brafman likened centralized organizations to spiders and distributed organizations to starfish.

A spider is a centralized tissue, and if its head is cut off it cannot survive.

Starfish are made up of a bunch of cells that are equal to each other (and have no center), and each tentacle they tear off can grow into a whole starfish. When the star-type organizations are decomposed in the face of setbacks and conflicts, their organizations become smaller decentralized organizations and continue to play a role. Spider organizations, on the other hand, cannot continue to function when their heads are cut off. Starfish decentralized organizations have strong vitality.

(3) The service object

Traditional organizations or branded communities (countries, businesses, schools) aim to achieve certain results at certain times and serve specific customers.

The DAO community serves community members with a sense of belonging, personal health, mental health and support for common cultural values. It also makes work more fun and closer to the game organization through instant feedback, quantified achievements, and social honors.

(4) & have spent Incentive mode

The salary system of traditional organizations or brand communities is usually as follows: basic salary + year-end bonus + equity. The organization regularly adjusts employees' performance and ability. In order to improve employees' expectations for the future of the company and improve the retention rate of excellent talents, a large proportion of compensation will be allocated to the equity, and the vesting period will be set. In order to motivate employees to achieve short-term goals, the company will set the annual bonus as the largest proportion of the salary distribution.

Daos have never been, and will never be, a tool to maximize personal gains or profits. Working in the community, your project needs to have a high degree of alignment with your interests.

The following incentive forms will be adopted in the operation according to the actual situation of the community: decentralization of governance power, salary based on stable currency/fiat currency, original Token award of agreement, project bounty/incentive, POAP& NFT MEDALS, earnings from donations/investments, etc.

三、如何建设一个运转良好的大型社区？

3.1 DAO 社区潜在的问题有哪些？（Mosher）

(1) It is difficult to operate completely as DAO in the initial stage

In the early stages of a project, someone needs to lead and develop. Otherwise the DAO will have no direction. We are more inclined to say that a project should be set up first and then slowly evolve into the DAO.

(2) Relevant laws and regulations are not clear

From a practical point of view, it is not clear where the DAO's existence legally applies. For example, DAOs often create "community wallets." But the ownership of the wallet is uncertain. Who pays the taxes that should be collected when revenues accumulate in the community purse? These are unavoidable topics during the DAO's evolution.

(3) Insufficient tools to operate DAO

Despite the various tools that have been developed, the lack of tools is realized when you actually try to run daOs, and the key question is whether DAO participants can make full use of them. For example, implementing mechanisms such as visualizing DAO members' contributions and automatically allocating tokens can be a daunting task. Most project members also communicate using centralized services.

(4) Barriers to cryptography knowledge and common sense

Participation in the DAO requires minimal knowledge of encryption. For most people, however, "Metamask" is a foreign object. Even if they were interested in the DAO, most users would be frustrated because they could not fund Metamask and connect the funds to the desired chain.

3.2 如何建设一个运转良好的大型社区？（Dolores）

At present, no matter DAO, NFT or chain game, each concept is inseparable from the community, and the culture and value of the community determine the vitality of the project. That's a little bit different for the community, for the project community and the cultural community.

For these specific projects, the project-based community is closely connected with the development of the project. Through these specific projects, NFT, Defi, chain games and so on, everyone gets together and makes contributions to the development and promotion of the project and the community.

And culture of the community, for example, say we, to attract and gathered a large number of community members, and more, depending on one of our community and values, a consensus, how to provide members with the value of depends on the KOL within our community, and can be transmitted to the core content of value, as well as their personal charm and ability.

Therefore, I think it is easier to form the DAO we talked about in the project community. In this decentralized organizational form, community members can manage through tokens, build together and share rights and interests, which naturally forms a better community.

So how can a cultural community like ours grow into a good community in the Web3 era? I think we can make efforts in the following aspects:

First, we need to strengthen members' sense of participation. Is to try to make our community members become participants and builders, participating in the activities and governance of the community.

The other is the sense of achievement gained by community members participating in community governance. Then why do our community members participate in the community, and continue to participate in the community, must be to participate in the construction of the community's own cultural attributes, internal atmosphere, etc., so that they can generate identity. Finally, revenue and value. That how to let community members have a better harvest, establish an effective interest mechanism, is we as community Managers really need to constantly think and explore the core of the problem.

These are just some examples, and of course there are other factors, but ultimately we hope to establish and form a very effective economic and work model, so that members can find their own work in it and get corresponding rewards, encourage and support everyone to do things, and effectively help the community grow.

3.3 为什么大多数 DAO 组织只是个骗局？（TY）

Token holder participation is low and most people vote with their feet.

Since the majority of Token holders are project owners and rich people, it will eventually evolve into two things: Most of the violence (basically even if you own the Token, you have no governance right, so it is a fraud), governance Token and organization revenue are disconnected (holding the Token and holding the revenue are not related), the solution is that the Token needs to be linked to the real interests of shareholders.

Many DAOs today are tools for hype.

99% of DAOs, like ngos (non-governmental Organizations), have members who contribute to the success of their work but receive no income. Good DAOs need to delegate both rights and benefits to DAO Members.

四、Web3 新工具下该如何科学的建立 DAO？（Blockpunk）

4.1 Possible parts of a DAO

Token (Core 1)

· Issue tokens as ownership and equity governance proof of DAO & NBSP;

Treasury Department (Core 2)

· Used to store assets stored as DAOs, including governance tokens that are not fully distributed themselves & NBSP;

· Rely on governance/multiple signings to manage & NBSP;

Governance departments (Punk's view: Some DAOs don't need governance)

· Vote based on an object (NFT, Token) & NBSP;

Executive department & NBSP;

· Enforce the results of governance;

· Often need to operate the assets of the vault & NBSP;

· There are multiple payment purposes such as task incentive and multiple payment means such as stream payment & NBSP;

Community and Parliament & NBSP;

· A place for your DAO members to gather for discussion;

· Meetings can be organized using multiple media & NBSP;

Document collaboration

· The historical distance between what is discussed and governance is documented and effectively presented to the community in a documented manner

· Often exist in the form of Github, forum and knowledge base.

4.2 Initiator (DAO Initiator is required in the early stage)

Colony (where Punk's organization invests)

· The establishment of received DAO tokens can accumulate reputation, which can be used to vote and initiate proposals (reputation will gradually decrease if no work is done continuously) & NBSP;

· Coin Machine initial token distribution mechanism, which can realize curve, limited time and limited price & NBSP;

· Lazy vote, which does not require all members to vote on everything, even if only one vote is cast, the proposal may pass. The higher the reputation, the faster the funding. Greatly optimized governance.

· Including a complete DAO system of native tokens, governance, receipt and payment, as well as a reputation system & NBSP;

Argon

· Similar to Colony but more complex

Syndicate

· Lack of governance ability and need to cooperate with multi-signature wallet to achieve collective decision-making & NBSP;

· Can easily receive capital injection and produce vouchers & NBSP;

· Strong legal protection and binding of legal entities & NBSP;

· The maximum number of members is 99

· Suitable for small investment club starter

4.3 the governance

Snapshot

· Fast off-chain voting & NBSP;

Tally

· Governance voting front & NBSP;

Boardroom

· More comprehensive tools. Directly inherits the discussion forum, kanban, voting page, and DAO's activity calendar.

· Can be notified by email.

Voting bots in Discord and Telegram

4.4 vault

Gnosis safe

· 多签钱包

4.5 Execution of payment:

Dework

· Integrate with Discord members, including access and information about them

· Synchronize with github's issues, Branches, pull Request and other tasks

· Pay the bounty using the Web3 wallet

· Tax compliance & NBSP;

· Dework is like mission Kanban with a bounty system;

Parcel

· Use multiple vaults to manage payments based on Gnosis Safe

Utopia

· Batch audit of reimbursement invoices & NBSP;

· Batch payroll processing with template & NBSP;

· Automatic payment of expenses, declaration of expenses, and low friction operation through signature & NBSP;

· Financial bookkeeping across multiple accounts & NBSP;

· Management and bookkeeping of members and working groups & NBSP;

Colony

Upstream Collective

4.6 Reputation Incentive - To solve excessive capitalization of the project:

Gitcoin DAO

Rabbithole

POAP

4.7 community:

Disocrd

· Management robot for de-chain validation data, supporting Snapshot governance voting & NBSP;

· Airdrop can be issued in chat software to transfer Token

· Strong scalability, the community can be divided into channels and permissions, which can greatly expand the size of the community and the type of members

· Abundant robots, community management can be automated

· Used in large communities with loose barriers to entry

, Tip. Cc

· Collab. Land

Telegram and other chat tools

· Suitable for small-scale, high-threshold private communities.

4.8 parliament:

Discourse

· For the construction of the forum section, most of the proposals are currently driven by the discussion on the forum

Hold regular meetings at fixed times.

, & have spent Lit portocol control access & NBSP;

问答环节：

Q1: Are centralized communities easy to grow, or are they decentralized?

Mosher:For the community, certainly the reach of decentralization will be wider. Centralized management mode, such as Force Community, currently we do not involve Community participants in our Community, which is the limitation of our Community. Decentralization will have a greater impact and reach a wider range of people.

Q2: What makes a good community operator?

Dolores:Personally, the character of a community manager should be willing to solve problems for new members, willing to help them. Second, the person should be familiar with the organization and be able to effectively convey the values of the organization.

Q3: What is necessary for a DAO to function well

Blockpunk:Early DAOs required a few elite people to maintain the organization.

Q4: Is there any good incentive mechanism for establishing DAO in China?

Mosher:I used to go to a project, and I would prove it based on the amount of work, and then when the project developed and the money was available, the rewards would be distributed according to the record. One way, but not quite the web3.0 model.

Q5: How can DAO continue to operate without Token award?

Mosher:Even if there is no token, there are people willing to pay for DAO, which is a reality. According to Maslow's hierarchy of needs, people begin to pay attention to "self-actualization" when their basic safety and physiological needs are met. To the famous philosopher Socrates' question: Who am I? Where am I from? Where am I going? The DAO community's mission and culture echoes the question of "where am I going?"