DAO design principles


Answering Pierre’s questions for the master thesis

What is for you a good governance process? (4-5 key principles)

  • Transparent
  • Clear
  • Balanced
  • Agile
  • Fair

How do you make sure that everyone acts in the interest of the whole (no corruption, no manipulation, etc…)

  • Allow people with right values as much as possible
  • Setup cross-checks
  • Show the direct connection between the system and personal goals

What if there are some decisions that follow the rules but are deemed unfair by a minority or even lead to the oppression of a minority ?

  • Depends on the purpose of the system and planning horizon. If planning is longterm, and human values are most important – we’d want to resolve it with mediation, quadratic voting and stuff like that.

How to prevent one person to somehow implement a decision that change the rules and change the entire DAO ? In other words, what’s your vision about having several levels on importance concerning decisions to be taken or changes to make ?

How do you ensure quality of decisions taken / that decisions are benefiting to the DAO’s success ?

  • Let members of DAO evaluate

What’s you post of view about the difference between token-based and reputation based governance ? what is the reputation tied to ? How do you earn reputation ?

  • Reputation is tied to specific group and can work inside it. You earn it by interacting with other members of the group

How are proposal formed ? Do the proposals have any sort of predefined form ? Is there a preset of types of proposal ? Do you think yes/no questions are the best way to govern a human organization?

  • Depends a lot on the situation

Do you think there is a required minimum number of members for operating a DAO ? How are you facing the problem of lack of members, especially at early stage of a DAO ?

  • See no point in limits here, there’re personal DAOs as well

What’s your thoughts in terms of code updatability ?

  • Should it be upgradable? Depends on the goal

How do you imagine DAOs fitting with a legal structure ? Is the legal environment important ? What’s your vision and how are you acting as regards this topic of legal framework ?

  • Important, currently in grey area. It can stay like that before it escalates with the governments

Some are mentioning the problem of dependency on ethereum and the need to rebalancing it, as ETH-related weaknesses risk becoming weaknesses for ETH-based DAOs. What’s your vision ?

  • You can build on other blockchains as well, Eth is just selected by most now

Finding the perfect time interval for voting, in order not to be too slow (then lack of reactivity) or too fast (then proposal spam, low quality of decisions, and low representativity, etc…) is mentioned as a central dgov-related issue. What is your position regarding that topic ?

  • Holographic consesus & conviction voting are addressing that, but not much historic data is available to draw conclusion, need to test more

The issue of intangible projects and milestones (that is, when the output of a task is not 1 or 0, but rather require subjectivity for assessing the quality of the work performed, thus the amount rewarded) can also be mentioned as potentially problematic for a DAO’s operability. What is your stance on that point ?

  • yeah, we can’t do that without people currently, but we can do cross checks

Finding the right oracle system (especially for off-chain events, or disputes) for an efficient organization is mentioned as a crucial part for DAOs. What is your thought about that problem ?

  • I don’t know working DAOs using oracles now, maybe am missing something

How do you strike the right balance between on chain (hard) and off chain (soft) governance ? What is for you the good equilibrium ?

  • Start with soft and then automate whatever is reasonable

Do you have in mind other key design principles that were not mentioned here ?

What are your top 5 design principles for a viable DAO, ranked in order of importance ?

  • Can say clearly
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