🧵/(part of
Roadmap Analysis 14: "Setting up a DAO"
Oy vey.
Let's start by saying I love DAOs and I think they're going to replace many if not most of the formal institutions in the world today, once they get better.
https://twitter.com/swombat/status/1463577582826397701)
Roadmap Analysis 14: "Setting up a DAO"
Oy vey.
Let's start by saying I love DAOs and I think they're going to replace many if not most of the formal institutions in the world today, once they get better.
2/But unless DAOs are the main point of the NFT project, "setting up a DAO" on a roadmap is as pointless as listing "setting up a LLC". In fact, no, it's worse. At least setting up an LLC serves a plumbing-level need of the project.
3/I ran my company @GrantTree for almost 10 years, and we experimented a lot with ways to decentralise power and give people more freedom. We adopted #Holacracy as a governance model. Had total transparency. People could set their own salaries. I really believe in that stuff.
4/But here's the thing: truly decentralising things while still maintaining focus on the purpose and vision of the project is Really Hard (tm).
So there's two cases that are likely with an NFT project:
So there's two cases that are likely with an NFT project:
5/Case 1: The DAO is in name only, and is basically a glorified voting system to make ppl feel like they participate.
That's nice, but that doesn't really solve the problem of delivering sustainable long term value. It's a decision-making tool, not a deliverable.
That's nice, but that doesn't really solve the problem of delivering sustainable long term value. It's a decision-making tool, not a deliverable.
6/Case 2 (ironically worse): There is a genuine attempt to set up a true DAO and the project ends up hitting all the snags and bugs with DAOs at the moment. The project ends up mired in indecision and grinds to a halt.
7/Unless it's done by someone with a lot of experience (of which there are precious few atm), "setting up a DAO" is unlikely to succeed.
Even those who are hardcore believers in DAOs now talk of "progressive decentralisation".
iow, you don't decentralise until you're ready.
Even those who are hardcore believers in DAOs now talk of "progressive decentralisation".
iow, you don't decentralise until you're ready.
8/But even if you did do that and miraculously do it right. What then?
Setting up a DAO is just an organisational structure change. It doesn't actually *do* anything. It's just a way to organise people. You still need them to actually do stuff that creates value.
Setting up a DAO is just an organisational structure change. It doesn't actually *do* anything. It's just a way to organise people. You still need them to actually do stuff that creates value.
9/I respect and admire the idealism of someone who truly wants to give their NFT project back to its investors.
But on a roadmap it's empty calories.
Next.
But on a roadmap it's empty calories.
Next.
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