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Creating a DAO
How do I create a DAO?
Before setting up a DAO, it’s important to answer the following questions:
What is the mission of my DAO?
How will my DAO be governed?
Why does it need to be a DAO?
These may seem like basic questions but they’re ones you’ll need to answer many times. The ability to articulate your DAOs objectives and operations, and the value proposition of the DAO structure, will provide valuable clarity throughout the creation process.
Currently, creating a DAO process requires a fair amount of technical know-how. However, we envision a future where a suite of tools exists that makes forming a DAO seamless and intuitive. Until then, we encourage experimentation – if only because it’s bound to reveal applications for DAOs we don’t currently foresee – and will do what we can to help.
What is the mission of my DAO?
This is your elevator pitch. Make it short and sweet, and phrase it in a way your least computer-literate friend would understand. You're explaining a mission, not a technology. From your elevator pitch one should be able to grasp the DAOs intended audience (e.g. individuals interested in xyz) and offering.
How will my DAO be governed?
From a technical perspective, there are a few key parameters to be determined prior to the DAO being formed. This is because the rules of the DAO are encoded on the blockchain and prospective members need to know the terms of engagement in advance. These include:
Onboarding: Is the DAO open to anyone, by invitation only, or by whitelist?
Democracy: Is voting power proportional to ownership or contribution, split equally amongst members, or allocated in another way?
Voting: What is the minimum number of votes or percentage of voting power that must be exercised for votes to count?
Governance: Are all members eligible to vote, or are only certain members governining members, and if so, how is this determined?
Term Length: Is my DAO's mission goal or time-driven, or can it exist indefinitely?
Funds: Are contributions for specific investment purposes or to fund a treasury? Is there a minimum contribution?
Why does it need to be a DAO?
There's no single right answer for why an organization should be structured as a DAO, but you need to be able to explain why your initiative is being as a DAO and what value and opportunity the structure presents.
Have we missed something? Let us know at [email protected]
Last modified 26d ago
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