The Power of Starting and the Rise of Community DAOs

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Hatched by Glasp

Aug 19, 2023

4 min read

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The Power of Starting and the Rise of Community DAOs

Introduction:

"The scariest moment is always just before you start. After that, things can only get better." This quote by Steve Shipley highlights the importance of taking action and starting, as it opens the floodgate of progress. In the world of community DAOs, this principle holds true as well. Community DAOs are not just a technological advancement but an internet-native economy that combines DeFi infrastructure, NFT business models, and creative humans. They have the potential to rival some of the world's largest public companies in terms of scale and impact. In this article, we will explore the common points between the power of starting and the rise of community DAOs, and how they can shape the future of decentralized organizations.

Starting is the Catalyst for Progress:

Just as executing the simplest activities encourages progress, in the realm of community DAOs, taking that initial step is crucial. These DAOs are built on the foundation of community governance, where key decisions are made collectively and enforced on-chain through smart contracts. The org structure of DAOs resembles modern-day cooperatives, but their potential for growth and impact is immense. Starting a community DAO is not about maximizing shareholder value from the beginning; rather, it is about nurturing a strong community that drives the DAO's success.

Recurring On-chain Cash Flow:

To sustain and grow a community DAO, recurring on-chain cash flow is essential. This cash flow can come from two types of assets on the DAO's balance sheet: equity and cash. Equity includes blue-chip NFTs, community DAO tokens, and crypto protocol tokens, while cash comprises cryptocurrencies like ETH, USDC, and DAI. Increasing the value of the treasury while maintaining the community's strong vibes is the game for community DAOs. One way to kickstart a community DAO is by collecting blue-chip NFTs, tokenizing them, and creating a tokenized NFT gallery. This not only adds value to the DAO but also serves as a proof-of-work for committed members.

The Importance of Community Engagement:

While the potential for growth is vast, community DAOs face certain risks that can hinder their progress. One such risk is poor operational security (OpSec), which can compromise the integrity of the DAO. Additionally, the volatility of the crypto market poses a potential risk to the value of ETH and NFTs held by the DAO. Lack of community engagement and poorly designed tokenomics can also undermine the success of a community DAO. Overcoming these challenges requires a focus on community building, active participation, and thoughtful token design.

The Future of Community DAOs:

Looking ahead, the future of community DAOs is promising. With the potential to become billion-dollar organizations, community DAOs are set to revolutionize the way we think about decentralized governance and participation. As community tokens gain prominence over social tokens, service DAOs will play a vital role in scaling community DAOs. These service DAOs can leverage their expertise and connections to support crypto protocols and facilitate distribution. The rise of community DAOs signifies a shift towards a more inclusive and decentralized internet-native economy.

Actionable Advice:

  • 1. Start now: Just as starting is the catalyst for progress in personal endeavors, it is the key to unlocking the potential of community DAOs. Take that first step and build a strong foundation for your DAO.
  • 2. Foster community engagement: Actively engage with your community members and create an environment that encourages participation. Regularly seek feedback and involve the community in decision-making processes.
  • 3. Prioritize token design: Thoughtfully design the tokenomics of your community DAO to ensure sustainable growth and incentivize active participation. Consider the balance between equity and cash assets to maintain the value of the treasury while nurturing the community's spirit.

Conclusion:

The power of starting is evident in both personal endeavors and the rise of community DAOs. Just as executing the simplest activities encourages progress, taking that initial step to start a community DAO can unlock immense potential. By incorporating recurring on-chain cash flow, prioritizing community engagement, and embracing the future of decentralized governance, community DAOs have the ability to shape the future of the internet-native economy. The time to embrace this revolution is now. Just do it, as Nike says, and watch the possibilities unfold.

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