8 Reasons for Non-Participation in Decentralized Autonomous Organizations. Why is it so difficult to find people to join your DAO?
A DAO is quick way to allocate funds for your organization or project; it governs incentives and creates transparency. It is a community of like-minded individuals also considered a network that runs on blockchain technology utilizing smart contracts.
This article, however, is not dedicated to what a DAO is nor how they operate. It is assumed you already have a basic understanding and if not scroll to the end of this article to find some helpful insight.
A constitution for your DAO must be created and not in such a way to block your members from making decisions. See resources below for more information on writing a Constitution for your DAO. As soon as you have your first few members you should begin to communicate your DAO’s vision.
In a DAO, everything must be clearly written, well-communicated and documented. Each DAO must have a plan of action and interaction.
In a DAO setting, your members are your voters, and this should create incentive mechanisms such as: a safe space, social capital, and psychological ownership. Rewards are not just in the form of a currency. However, the most popular incentive and voting mechanisms are based on coin distribution.
In DAO’s, it is especially difficult to form a consensus with too many or too little voters. The greatest obstacle for any new DAO is to recruit people to join and once onboard, to participate. A clear roadmap: your DAO’s Constitution and the policies written in your smart contract must be in place before initiating the communication necessary to motivate and inspire your members to participate.
Please remember that your members and contributors at all levels must feel valued, needed and appreciated in order to complete relevant tasks, collect rewards and achieve positive outcomes.
When an individual creates a DAO and also wishes to remain in control; the DAO becomes centralized; which defeats the purpose of ownerless ownership or creating and building out their DAO in the first place.
“A command authority creates a division of community and resources. A passive authority injures its foundation and dismantles its tools.” -qrah
Below you will find some non-technical reasons why your DAO is not up to par and how to make it better. By utilizing some of this insight you will begin to attract either the same or different individuals with the desire to help you and your DAO achieve its goal.
It may be difficult to recruit people to your DAO based on these 8 factors:
2. Too few or too many members
3. A lack of shared goals
4. One-sided opinion, never ending debate
5. A lack of retaining high value contributors
6. Not having policies written in your smart contract
7. Lack of quality content
8. FULLY LET GO! YOUR TEAM HAS ARRIVED!
Let’s delve into these 8 reasons:
1. Starting an organization requires recruiting people you trust, and those people must trust you. In a DAO setting, you don’t need to trust anyone except the DAO’s code. Trust is built in and customized into your DAO’s code through coded policies and mechanisms. It is a requirement to have these in place to build the level of trust you need.
2. There is no set rule or strategy in place for the common DAO problems of having too few or too many members. How does one stop big whales from buying up the majority of tokens or too few members to feel motivated to participate when the project is just beginning.
Best kept solution thus far, is having strict policies in place, such as, governance, security, all aspects of design, administration, financial, and communal activities with incentive mechanisms at play.
This strategy creates policies to keep whales at bay and raise the vibration of low-key contributors.
3. It is rare to find a community leader that wants to form a DAO driven solely by their absolute control. However, they do exist! Shared goals imply shared responsibility, shared decision making and shared incentives. In a DAO there is no central authority. All members own your “the” Decentralized Autonomous Organization or DAO.
4. DAO’s are member owned communities with no central authority. Till this day we still witness folks who create DAO’s to create tall orders filled with demands and complaints. This is why your efforts cannot recruit the quality of members your cause requires. Decisions are governed through proposals and votes to ensure that everyone in the community has a voice. One sided opinions and debates are major red flags. DAO’s have no CEO’s.
5. A lack of retaining high-value-contributors to your DAO happens primarily because there are so many different projects and communities to choose from all over the world. Up your game by reading lots of articles and watching videos online to learn how to retain high-value-contributors.
6. Not having policies written in your smart contract will stop any action that your DAO is attempting. Smart contract code cannot be modified once it is live. Once your policies are written in your DAO’s smart contract they cannot be modified except through a vote. Anyone that attempts to avoid initiating this process is someone who wants to keep control and should not be trusted as a DAO creator.
7. Everyone wants to be popular. Small businesses, Fortune 500 companies, nonprofits and communities all over the world are tapping into the creator space. This creates a wave of buying followers and putting out mediocre content. Producing high quality content attracts high quality contributors for your DAO and its experiences.
8. FULLY LET GO! YOUR TEAM HAS ARRIVED! These two very powerful statements represent that most business owners place so much emphasis on having a solid team, a strong hold community, a powerful DAO and yet all they must do to make it all happen is to FULLY LET GO!
What this article hopes to accomplish is to advance the communal aspects needed to fortify and help evolve existing DAO’s.
Thank you, for reading! Hope you enjoyed it. -q
Some savory resources to build a new or expand your existing DAO include:
Ethereum on DAO’s
Decentralized Autonomous Organizations: When Code Mirrors Law
How to Write your DAO Constitution and Become a Founding Father
Research Institute for Cryptoeconomics
Start a DAO in Seconds