DAO Thoughts & Learnings 23/07

3 thoughts about DAOs this week

  1. Paying DAO grants as a payment stream. Most DAO grants are paid as an upfront, one-time payment, or in tranches based on milestones. Several tools (Sablier, nouns Streamer) now allow you to stream these payments, i.e. grant recipients receive continuous payments, sometimes every second. In case of fraud or noncompliance DAOs can stop this stream at any time.

  2. Need for a more diverse DAO terminology. The term DAO is used to describe an increasingly diverse set of organizations. Using DAO as a one-size-fits-all term will slowly be replaced by the emergence of DAO “species”, each with their own distinct characteristics and playbook, e.g. an investment DAO will need a different governance, GTM, and automation setup than a protocol DAO. I have been working on a small research project in that area and hope to publish some more on this soon.

  3. Constructive discussion as a bottleneck to DAO scaling. DAO proposals are often subject to heavy discussions before being put up for voting. Discussions usually happen on forums, where members post their thoughts and feedback in long comments that are then added to the wall of existing comments. This format does not make discussions easy, but instead leads to multiple simultaneous conversations that are difficult to track, duplicate comments, and a general tendency to talk past each other. Assuming that governance discussions will only increase in participation from here, we will need to find a more constructive way to facilitate them at scale.

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