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How to Build a DAO That Doesn’t Make People Want to Run for the Hills (or Accuse Each Other of Stealing Computers)

Fabian Owuor

Fabian Owuor

So, welcome to the strange but extremely exciting world of a DAO. Imagine a group chat. But not just any group chat—a caffeine-fueled, emoji-spamming, meme-sharing, hyper-ambitious group chat where everyone is the CEO. Now, add money. A lot of money. And rules. But not normal rules—rules written in code.

That, my friend, is a DAO.

A DAO (Decentralized Autonomous Organization) is like a co-op on steroids, run by a bunch of like-minded people on the internet who may or may not have met in real life. It’s a place where decisions are made by voting, but half the voters are asleep because time zones are a thing. It’s where you can propose anything—from building the next Google to buying a private island for the community—and someone will inevitably argue about gas fees. But you must do it as a group and have 60% or more consensus to pass resolutions, there is no CEO here, we all have CEO privileges and groups called pods where decisions are made.

Here’s the kicker: a DAO has no boss. Instead, it has everyone as the boss. Picture a kindergarten classroom where every kid has a whistle and a megaphone. That’s governance in a DAO, with a bit more life changing decisions and because we are grown up, we take turns with the megaphones, the whistles you can blow all you like, just do not interrupt someone's point, we have an admin with an ability to kick out and suspend (not in the air but out of the room).

Oh, and the money? It’s all in a digital wallet that requires 12 people to agree before anyone can spend it. How difficult would it be to get pineapple toppings on your pizza with a vote of 12, why would you vote for such a sacrilege, now think about a six-figure budget you need to convince 12 people before you go spending all willy nilly.

In short, a DAO is the internet’s way of saying, “Let’s start a business, but make it a group project where no one is in charge, and we all get rich (or go broke) together.”

The DAO is the official wild, wild west of Web3, and when the payouts are questionable, and the openness is lacking, there is no clarity on dao work and non dao work, the drama gets juicier than a Nollywood blockbuster. But hey, it’s been an eye-opening experience, so far? I have discovered that running a DAO is almost like herding cats—and if you remember, cats have this thing or running around the room in the night, high pitched sounds on the roof at night, some are even so set in life, you have to push the plate to its face for it to eat. we can explore cats in more detail back to DAOism.

Now, let’s address the elephant in the room (or the supposed stolen computer, depending on who you ask). Your DAO has a few challenges: unpaid claims, questionable spending, projects not benefiting the DAO and then add a public spat involving accusations of theft. Here are some thoughts to build a DAO that doesn’t make people want to quit Web3 and become goat farmers, coz with goats all you have to worry about is the fence, that's like goat pizza, they love it.

1. Pay People. Seriously. Just Pay Them.

Let’s start with the basics. If someone does work, pay them. It’s not rocket science. If your DAO has developers who haven’t been paid in over a year, you’re not running a DAO—you’re running a modern slave tech firm (killing youth spirit). Set up transparent payment systems with smart contracts that automatically release funds when milestones are hit. No more “I forgot” or “the funds are stuck in a multisig wallet.” Pay people on time and maybe throw in a pizza emoji for good measure.

2. Open the Books (Yes, All of Them)

Transparency isn’t just a buzzword; it’s the glue that holds DAOs together. If your DAO’s spending is as mysterious as the plot of Inception, you’re doing it wrong. Use tools like Gnosis Safe or Aragon to make all transactions public. Let everyone see where the money is going. If you’re spending $10,000 on “miscellaneous expenses,” be prepared to explain why. Spoiler: “that one was a private job” is not a valid reason.

3. Stop Accusing People of Stealing Computers (Unless They Actually Did)

Look, we get it. Emotions run high in DAOs. But accusing someone of stealing a computer they used to work for the DAO is a bit… dramatic. Instead of playing with the police, focus on building systems that prevent misunderstandings. Have clear guidelines for asset usage, and document everything. If someone needs a laptop, log it. If they return it, log that too. And if they don’t return it, maybe send a polite reminder before calling the police and use the DAO instruments from governance and disciplinary for initial action.

4. Build for the Long Term, Not Just the Next Grant

One of our community members said it best: “We all die in the end, but we must still make life livable.” Your DAO shouldn’t just be a place where people scrape by; it should be a platform where they thrive. Aim to create residual income streams so that in three years, your members can retire to a beach in Zanzibar (or at least take a long vacation). Think about revenue-sharing models, staking mechanisms, and other ways to ensure everyone benefits from the DAO’s success.

5. Solve Real Problems (Especially in Africa)

Here’s the thing: Web3 isn’t just about making a few people rich. It’s about solving real problems, especially in regions like Africa, where inefficient systems and selfishness often muddle progress. Use DAOs to create purpose-driven solutions—whether it’s improving supply chains, enabling microloans, or building transparent governance systems. And remember, funding isn’t race-driven; it’s results-driven. Show the world what you can achieve, and the funds will follow.

6. Fork It and Fix It

Sometimes, the best way to fix a broken DAO is to fork it and start fresh. That’s exactly what me and my like-minded crew are doing. A new DAO with three pillars: openness, accountability, and a relentless focus on solving problems. Whether it’s Web3 developers, lawyers, or accountants, everyone should feel valued and fairly compensated. And if we allocate you a computer, it is yours for life, hell, you can even let your whole family or children use it.

7. Grow Communities, Not Egos

The chains and Web3 organizations aren’t interested in making two or three people filthy rich. They want to grow numbers and build thriving communities. Your DAO should do the same. Focus on collective wealth, fair compensation, and creating an environment where people are excited to contribute. If your DAO’s history is a graveyard of people who left or were “lefted,” you’re doing it wrong. Build trust, foster collaboration, and remember: a rising tide lifts all boats.

8. Add a Dash of Humor (and Humanity)

Let’s face it: Web3 can be intense. Lighten the mood with a little humor. Maybe create a “DAO Memes” channel in your Discord. Celebrate wins, no matter how small. And when things go wrong (and they will), laugh about it but find a solution. After all, we’re all just humans trying to figure this out together.

Final Thoughts

Building a DAO isn’t easy, but it’s worth it. With the right systems, mindset, and a commitment to solving real problems, we can create a DAO that people are proud to be part of. And who knows? Maybe one day, your DAO will be the gold standard for Web3—a place where everyone gets paid, people can own the computers allocated to them, financial openness to make government mouth water, and a community that rallies behind it like a cult.

The DAO is left, The DAO is left, Long live the DAO. Watch this space there is a new DAO coming, it has got to be done right. The future of Web3 (and Africa) depends on it.

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How to Build a DAO That Doesn’t Make People Want to Run for the Hills (or Accuse Each Other of Stealing Computers)