DAO Thoughts & Learnings 23/09

3 things I learned about DAOs this week

  1. Heterarchy as an alternative org structure. Many DAOs have realized that a leaderless structure does not work. Having every decision voted on by the community leads to both slow and suboptimal decisions. Heterarchy is an alternative governance structure that introduces a fluid hierarchy that changes based on the decision making context. The model is structured around many leaders, each with their own area of expertise, and empowered to make decisions in their domain without needing group consensus. As a result, decisions are faster and expertise based. At the same time, true to the idea of DAOs, leadership remains decentralized.

  2. Universities become key governance participants. Last week, a16z delegated 7 million Optimism tokens to 7 university student groups (Carnegie Mellon, Georgia Tech etc.). 2 years ago a group of Stanford students became the then 9th largest delegate on Uniswap. I find this a powerful trend that helps broaden delegate diversity towards a generation that is heavily impacted by crypto but might lack the means to participate meaningfully

  3. Apparent Consensus Governance is an alternative form of governance that helps DAOs make better use of experts in their decision making. The model follows a three step approach.
    Step 1: Crowd consensus - Anyone can make a proposal and put it up for discussion in a public form.
    Step 2: Sophon consensus - Expert members of the DAO review the proposal and publish a recommendation on how to proceed.
    Step 3: Tokenholder consensus - Tokenholders can object to the Sophon recommendation in a token weighted vote.

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