# Summarized version - DAOs: Absorbing the internet - Koreanpaper.eth - Medium By [jihwan.eth](https://paragraph.com/@jihwan) · 2021-11-19 --- ![](https://storage.googleapis.com/papyrus_images/56b065b50f125ec1d8007c6e3c1b512db7259217c0385a10dcaaca883ca609d7.jpg) Actionable insights ------------------- * DAOs are a new way of organizing people.DAOs seek similar ends — the creation of value similar to company structure — but rely on a decentralized framework in which workers, users, and other stakeholders have true _ownership_ of the entity. * Various types of DAOs have emerged to serve different use-cases.There are DAOs for investing, DAOs for building new products, DAOs for socializing, and many iterations both between and beyond. * Meaningful assets are being managed by these entities. * We’re still early when it comes to DAO infrastructure.**DAOs have many of the same needs as corporations, but must often deal with greater complexities given their scale, fluidity, and technical stack.** * DAOs have clear vulnerabilities that have yet to be fully addressed. Introduction ------------ We did not always work for companies. * 1820 just 20% of American population worked for an organization * after industrialization and by 1950, 90% of the populace depended on companies * consolidation of workers under large organizations with centralized command systems A better alternative; DAOs * **Definitions**. Explaining what a DAO is and how we might think of them. * **History**. The origins of a new organizational structure. * **Categories**. The diverse types of DAOs that exist. * **Culture**. The values and philosophies that underpin the space. * **Landscape**. Key players and the tools they use. * **Starting a DAO**. Exploring the benefits of going decentralized, and the tactics needed. **Legal issues**. Promising developments in Wyoming, and open questions. * **Against DAOs**. The vulnerabilities of the structure and its unproven potential. * **Frontier**. Exploring what the future might hold. History and lore ---------------- Ethereum Whitepaper ------------------- > _\[DAOs are\] a virtual entity that has a certain set of members or shareholders which, perhaps with a 67% majority, have the right to spend the entity’s funds and modify its code._ **2 Types of DAOs** Decentralized Autonomous Corporations (DAC1) * 1 share = 1 vote Decentralized Autonomous Communities (DAC2) * 1 member = 1 vote The DAO ------- * hacking issue What is a DAO? -------------- Simply put — decentralized autonomous organization Critically, * **Decentralization and autonomy are sliding scales** * DAOs — are entities **geared towards a shared purpose: the creation of value** Characteristics --------------- _how DAOs differ from other organizations_ **Ownership** * distribute ownership to a variety of stakeholders in the ecosystem * DAOs are owned by the ppl who create value in them **Organization** * stakeholders choose their own labor and self-organize Frameworks ---------- _how DAOs operate tactically_ **DAOs as companies** * DAOs have departments which have a team lead that guides and supports other members * Teal organization **DAOs as coops** * owned and controlled by the workers that contribute to it **DAOs as networks** * distribute ownership to a range of different stake holders * most useful framework in DAOs **13 ways of looking at a DAO** [https://twitter.com/divine\_economy/status/1453480931487006728?s=20](https://twitter.com/divine_economy/status/1453480931487006728?s=20) Types of DAOs ------------- _similar as what types of LLCs exist? — technically oriented or socially-oriented_ **Technically-oriented DAOs** * focus on building in the crypto space * on-chain actions **Socially oriented DAOs** * bring together groups of people * find ways to interact and convene Protocol DAOs ------------- * collaborative entities that exist to help build a protocol * MakerDAO, Sushi, Uniswap, Compound Social DAOs ----------- * to create a powerful community * FWB, Seed Club, CabinDAO, Bright Moments Investment DAOs --------------- * to aggregate capital and investor for deployment * The LAO, Flamingo, Neptune, MetaCartel Grant DAOs ---------- * many early DAOs geared toward patronage, operating as Grant DAOs * seek to advance broader ecosystem, promising projects * Uniswap, Compound, Audius grant program Service DAOs ------------ * talent aggregators * pulling together human capital directed towards certain projects * RaidGuild, PartyDAO, DAOhaus, Yam DAO Media DAOs ---------- * produce public content collaboratively * Forefront, Bankless, DarkStar Creator DAOs ------------ * fan clubs + contributor * social tokens * Roll, Leaving Records, Personal Corner Collector DAOs -------------- * unite contributors around certain assets or collectibles * curators for certain projects * SquiggleDAO, MeebitsDAO, PleasrDAO, NounsDAO Philosophy and culture ---------------------- _two traits seem to be particularly commonplace across the DAO landscape_ Acting like owners ------------------ * elevate the individual and give users a chance to contribute and own Radical transparency -------------------- * establishes trust between all players * incentivizes collaboration over competition * empowers individuals to take ownership because of their deep understanding of organizational context Landscape --------- _players across core functions_ Formation --------- * Aragon, Syndicate, Orca, Tribute, Colony Aragon * provides suite of applications to create, manage, and govern DAO Syndicate * democratize the world of investing Orca * Pod Model [https://orca.mirror.xyz/Y2xvPmB4cJH51srGqY6Mm\_g38lV-7cwvtyDePnyzfAE](https://orca.mirror.xyz/Y2xvPmB4cJH51srGqY6Mm_g38lV-7cwvtyDePnyzfAE) * composability Tribute * fundamentally modular Colony * start a DAO without any coding needed * includes membership management, treasury tooling, infrastructure for governance Communication ------------- * Discord, Telegram, Twitter Coordination ------------ _coordination especially at scale_ **Coordinape** * helps DAOs coordinate and distribute resources to contributors * Circle product- allows DAO contributors to gift tokens- creates compensation map **Collab.Land** * offers token-gating bot for Discord and Telegram * similar — Guild **SourceCred** * used to measure and reward the contributions of individuals to a project * Grain — used as a wage-equivalent **DAOhaus** * no-code platform for launching and running DAOs on a framework built by MolochDAO Compensation ------------ _how DAOs compensate contributors, payroll for DAOs_ **Superfluid** * allows for programmable cash flows * streams of value so that compensation automatically flows to a DAO’s contributors Sablier * financial streaming platform * truly autonomous- team that created this project burned their keys Governance ---------- _hardest problems DAOs face today, permissionless access: a double-edged sword_ **Snapshot** * offchain, gasless voting platform * SafeSnap- product by Gnosis, allows on-chain execution of off-chain voting * vote off-chain ← saving on gas fees and enacted on-chain later **Discourse** * forum- for formal discussion and feedback on proposals Treasury -------- **Llama** * DAO that focuses on assisting other DAOs with treasury management * created dashboards, reports, treasury management guidelines **Parcel** * a treasury suite **Gnosis** * provides a better user-experience for DAO multisig wallets Other notable organizations --------------------------- PartyDAO, Mirror, Seed Club, FWB, The LAO, MetaCartel, Moloch, Rabbithole Why start a DAO? ---------------- _3 core reasons_ 1\. Ease of capital formation ----------------------------- * easiest ways to pool funds 2\. Shared upside ----------------- * crypto tokens provide a fluid way of rewarding an array of stakeholders * some DAO tokens have risen → introduced grant programs and fellowships 3\. Transparency ---------------- _DAOs communicate, onboard, transact, and govern in public_ **Communication** * public channels which anyone can join to learn more about the project **Membership** * on-chain public records * membership composability, rewarding anyone with other DAO’s token **Governance** * members can propose new initiatives and vote on key decisions DAO structure does not have clear benefits How to start a DAO ------------------ _Sell some NFTs, seed your community with cool people, gate a Discord, and drop some tokens_ Call to adventure ----------------- * mission and vision describing what participants are buying into with a DAO Distribution of ownership ------------------------- * airdrop * bounties * purchase of tokens Governance ---------- process of building legitimacy in the decisions taken by the DAO or teams operating within the DAO most common method of decision making * Token Weighted Voting **How a bill becomes a law** 1. Discussion and shaping 2. Formalization of proposal 3. Voting on the proposal 4. Execution of the proposal Incentivization and reward -------------------------- **DAO incentives include:** * Token rewards * Social capital * Bill-paying tokens **DAO rewards** * Bounties * Grants * Coordinape Circles * Salaries Working for a DAO ----------------- Choosing your discipline ------------------------ * Community managers * Recruiters and promoters * Scribes * Artists * Engineers * Treasureres * Game designers * Digital marketers **Finding the right role** * no formal discovery process **Onboarding** * ex) weekly new joiner sessions and provides detailed guide **Collaborating** **Getting paid** Legal questions --------------- **Wyoming** * recently passed a law that grants legal company status to DAOs that operate on a blockchain **Unincorporated Not for Profit — UNA structure** * a group of individuals want to form an association without having to formalize it through registration Against DAOs ------------ 1. Fiduciary responsibility 2. Minority protections DAO reading list ---------------- [Squad Wealth](https://otherinter.net/research/squad-wealth/) by Other Internet [A Prehistory of DAOs](https://gnosisguild.mirror.xyz/t4F5rItMw4-mlpLZf5JQhElbDfQ2JRVKAzEpanyxW1Q) by Kei Kreutler [DAO Landscape](https://coopahtroopa.mirror.xyz/_EDyn4cs9tDoOxNGZLfKL7JjLo5rGkkEfRa_a-6VEWw) by Cooper Turley [The DAO of DAOs](https://www.notboring.co/p/the-dao-of-daos) by Packy McCormick [State of the DAOs](https://banklessdao.substack.com/p/state-of-the-daos-0-oct-6th-2021) by Bankless [Organization Legos](https://medium.com/1kxnetwork/organization-legos-the-state-of-dao-tooling-866b6879e93e) by Nichanan Kesonpat [Sushi and the Founding Murder](https://www.readthegeneralist.com/briefing/sushi) by Mario Gabriele [The New Coordination Frontier](https://docs.google.com/presentation/d/1fLJvPOvibcCUpJ9ES44_cdoX5Hb7LpDaloGWz5FbUEM/edit#slide=id.gec41538503_0_399) by Gitcoin x Bankless [Come for the creator, stay for the economy](https://p.mirror.xyz/1EpvJwUpx_KlRcHOKLNqADEkwHL_Z1ZYKobF2uLwgBg) by Patrick Rivera [A beginner’s guide to DAOs](https://linda.mirror.xyz/Vh8K4leCGEO06_qSGx-vS5lvgUqhqkCz9ut81WwCP2o) by Linda Xie [Protocols and Creator DAOs](https://darkstar.mirror.xyz/yEK4DdvmxwZ2l-yHWGOQs3rMsLD6RYs_phLUzSFdhAI) by Darkstar --- *Originally published on [jihwan.eth](https://paragraph.com/@jihwan/summarized-version-daos-absorbing-the-internet-koreanpaper-eth-medium)*