gm Good Contributors 👋
After a week, the treasuries of DAOs have increased by a whopping $3.9B! It's evident that this is a significant trend, and you might be wondering how you can contribute to this success.
Well, you've come to the right place! Keep reading to learn some tips on becoming a Good Contributor to this new era.
Last time, we discussed the ins and outs of securing a grant in the exciting world of DAOs.
Today, we're excited to explore another critical step in the process: navigating the voting process.
The voting process in the DAOs 💊
In a traditional election, voters go to polling stations and cast their votes, while in a DAO, members vote using a smart contract based on their stake in the organization.
The goal is to ensure that every participant's voice is heard and decisions are made in the best interest of the community.
Here are the general steps of a voting process in a DAO:
Proposal submission
Discussion period
Voting period
Tallying of votes
Implementation of proposal if approved.
Practical example
Let´s use BanklessDAO as an example.
First, community members propose ideas and discuss them on BanklessDAO's Discord.
If an idea gains enough support, it moves to the second phase: off-chain voting using the open-source software platform Discourse. This step helps filter out proposals that may harm the community.
If a proposal receives enough votes, it moves to the final phase: on-chain voting using a web3 platform like Snapshot. Snapshot is an open-source voting platform for Web3 projects, DAOs, and communities that uses IPFS as its main storage layer.
To participate in voting, members must hold the $BANK token. Depending on the number of tokens you have, you will have more voting power. This type of voting is known as Token-based Voting.
BanklessDAO is constantly improving its governance process and is even working on a Constitution and a dedicated department for governance.
Types of voting mechanisms
It is essential to acknowledge that DAOs are a fresh idea, and there isn't a universal strategy for their governance structures. Consequently, the voting process, while often similar, will vary depending on the type, mission, and size of the DAO.
Below is a compilation of various voting mechanisms employed by DAOs.
Token-based Voting: Members use their tokens to cast their votes, and the number of tokens each member has determines the weight of their vote.
Reputation-based Voting: Voting power is assigned to members based on their reputation within the DAO.
Quadratic Voting: Members can vote based on the square root of the number of tokens they hold.
Token-based Quorum Voting: A predetermined level of voters is required to vote in favor of a proposal for it to pass.
Multisig Voting: DAO members have the power to signal on proposals, while a centralized committee executes the vote on the suggested proposal.
Direct Voting: Each member of the DAO has a single vote that they can use to approve or reject a proposal.
Conviction Voting: The mechanism selects for the aggregated preference of community members expressed continuously over time.
The practice of voting in DAOs promotes transparency, accountability, and engagement, which allows for quick decision-making. However, there are obstacles because DAOs assert independence, yet there are still individuals involved, resulting in conventional difficulties with voting and decision-making methods.
Governance Failure: Not Just in DAOs ✋
The act of voting has been present in the history of humanity for centuries, although the forms of voting and electoral systems have evolved over time.
The first form of voting is believed to have originated in ancient Greece in the 5th century BC, where a system of voting by show of hands was used in popular assemblies.
Since then, the right to vote has evolved, and throughout history, there have been numerous struggles for universal suffrage and equal voting rights, including the fight for the rights of women, African-Americans, and other marginalized groups.
Today, most countries have electoral systems in which citizens can vote in democratic elections to choose their leaders and representatives.
One of the biggest challenges facing any democratic organization, including DAOs, is ensuring the security and transparency of voting processes.
Voting has been plagued by fraud, manipulation, and coercion, which have led to a loss of trust in the entire electoral process.
Fortunately, there is a solution: blockchain technology can be used to register votes securely and transparently.
Blockchain technology is a decentralized system that records transactions in a secure and transparent manner. Each transaction is verified by a network of nodes, and once a transaction is recorded, it cannot be altered or deleted. This makes blockchain an ideal technology for voting, as it provides a tamper-proof record of every vote cast.
Because the system is decentralized, no central authority can manipulate the results, and every member can verify that their vote has been recorded correctly. This provides a level of transparency and security that is unmatched by traditional voting systems.
While blockchain technology can provide more secure and transparent voting processes, it doesn't automatically solve all governance and voting issues.
Similar to countries, companies, or any other human organizations, DAOs need to establish their governance structure and select an appropriate voting process to achieve their objectives.
Despite the challenges, the potential benefits of decentralized technology are too significant to disregard. The future of democratic governance may well be decentralized, and we must embrace this new era to innovate and improve.
Read 📚
Origins of Self-Organizing Organizations — Agile, Holacracy, DAOs
Visualize 👀
DAO Symposium - The Nuts and Bolts of DAO Voting
1 Human 1 Vote Money Legos 🔜 More Democratic DAOs 🧱🤝✨ by Kevin Owocki
Latest DAO News 📢
➢Uniswap V3 Launches on Polygon's zkEVM
➢Olympus DAO establishes a new treasury strategy and framework
➢Lido DAO to retire Solana and Ethereum referral programs
➢DaoLens introduces Robin, an AI chatbot tailored for DAOs
➢Gitcoin community voted to fund Infinite Garden TCG
➢Increasing wETH collateral factor on Sonne Finance
➢ROOK Investors Begin Swapping Tokens for $25M Crypto Treasury
➢Arbitrum proposal to return 700M ARB fails, whale calls it a “power play”
Step by step 🌿
In the last seven days, I've embarked on a new journey by joining not one, but two web3 writing collectives:
https://twitter.com/TheRRoundup
https://twitter.com/contentguildxyz
That does not stop me from contributing in:
https://twitter.com/banklessDAO
https://twitter.com/KrauseHouseDAO
As I begin my journey as a wordsmith in a DAO, I gotta say, I'm blown away by all the cool opportunities and collabs that have come my way. I've been grinding for two whole years, and it feels amazing to see all this potential.
Now, some folks might see cryptos as a shortcut to cash, but me? Nah, I'm more about that slow and steady growth. Gotta take my time and do it right, you know?
Think that DAOs are going to be here for a long time...
Meme of the Week
Gn Good Contributors!👋
As DAO contributors, we use a lot of tools. Information is scattered across various platforms, from messaging on Discord to governance forums on Discourse, bounty boards on Dework, meeting notes on Notion, and more. This fragmentation makes it difficult for members and contributors to access information conveniently when they need it.
DAOhub addresses this issue by aggregating all these different platforms powered by GPT-4 and providing a centralized knowledge base where members and contributors can ask questions and receive instant, accurate answers.