With a decentralized governance model, DAO has solved many problems faced by the current organizational structure centered on centralization, which makes many companies or investors very optimistic about this emerging industry. But it is precisely because of the initial establishment of DAO that many contents and infrastructure are not perfect, which makes not all projects suitable for DAO ecology. Therefore, before a project decides whether to adopt the governance model of DAO, there are several key points Points need attention.
DAO is not recommended for centralized and large projects
At present, many projects are deeply influenced by traditional centralization, which makes some centralized projects often appear in the decentralized blockchain ecology. DAO is a kind of governance that relies on the joint decision-making of all members. This kind of project runs counter to the governance rules of DAO.
On the other hand, DAO's current governance capabilities are still relatively weak. In some large projects, coordination and communication involving a large number of nodes is possible, but the execution efficiency is relatively low. Because, at present, DAO is mostly used by some small and medium-sized projects. Even so, if the project party has greater "ambition", it will carefully consider whether it is appropriate to use DAO after its small and medium-sized projects become larger.
Need to have clear goals
Even though DAO is a decentralized organizational structure, this does not mean that members of the organization act independently. In DAO, there also needs to be a core team to create the overall goal of decision-making execution for DAO. Only when all members are moving towards a common goal can the DAO community be free from problems due to governance disagreements.
Build a good environment of trust
In a decentralized environment, trust is the basis for users to interact with data, and DAO is no exception. Since all decisions and work need to be voted by members of the organization, although these decisions are automatically executed by smart contracts, members can view and verify the code at any time. In DAO, it is necessary to maintain a highly secure and transparent collaboration method to Build a trust environment in DAO.
How to join DAO
If a DAO wants to expand, the addition of new members is naturally indispensable. How to select new members and ensure their due rights in community organizations is what all DAOs should consider when designing.
At present, there are two mainstream joining methods. One is the invitation-based joining that is automatically open to all users holding a pass. This method can gather a large number of organization members in a short period of time. The disadvantage lies in the purpose and Ideas can vary widely, leading to disagreements in governance. The other is to apply for joining by setting up a threshold, so that joiners can understand the ongoing DAO project more easily, and it is easier to reach a unified opinion when making decisions, which can greatly reduce disputes.