Why Create a DAO?

What is a DAO?

A DAO is a way to collectively manage resources in a community, in a way that is fair, transparent, and participatory. Instead of relying on top-down decision making, a DAO is led by a community. Founders put in funds and receive shares. As the DAO grows, new members are voted in, and members can receive shares for work, funds, or whatever else the community decides. Members can make proposals and vote. DAOs tend to be more creative, collaborative, agil e, and fair.

You might choose to make a DAO to collectively decide which projects your community will develop, or to reward active members with NFT's for their contributions. Homebase is a platform designed to empower communities to create and run DAOs on Tezos.

"DAO's are a fundamental shift to the way humans organize and collaborate!" - Spencer Graham

Here are a few articles about why the cooperative decentralization of web3 is relevant to creators, startups, and anyone wants to see a more fair and open internet:

Crypto's networked decentralization will drive web3, Tech Crunch.

Why Web3 Matters, a16z.

Why web 3.0 communities are a big deal?, a non-technical narrative, UX Collective.

Tezos Homebase was developed for the Tezos community to organize and develop DAOs together. Over time, Homebase will add features based on common needs as more Tezos communities create DAOs. The future of DAOs is bright, as more and more developers, creators, and protocols are utilizing the power of DAOs to build community engagement and realize the peer-to-peer benefit of blockchain innovation.

The social side of DAO’s

While Homebase empowers you to create a DAO for your community to collectively manage resources together on-chain, it’s up to you to decide how your community is governed. For example, do you have social processes connected with how you make decisions, such as dialogue, a recurring cadence of meetings to talk through, any agreements on how you are achieving your mission together? You might find this DAO Canvas resource helpful for communicating transparently with your community how you organize together.

More examples of DAO use cases:

A member of an artists DAO might propose to disperse an amount of funds to a designer who created the winning sneaker designs for their community to sell as merch. Or to deploy grants to members to work on certain projects.

A service DAO might disperse treasury funds to pay developers for working on client projects.

A grants DAO might disperse funds for anything from academic research, to protocol improvements, to local civic policy development.

It’s really up to your community, its purpose, and creativity what the funds are used for.

Last updated