You just started a DAO and received a message like this…
Ignore him. Not because he’s wrong, but because he’s missing the point.
DAOs can’t start decentralized.
A DAO starts as a person or group of people that rally others around a
mission that’s important to them. DAOs aren’t born spontaneously from
the bowels of the blockchain. First, a community must exist. Then that
community can leverage decentralization to increase its staying
To create a community, you need tools to market (Twitter) and to discuss
(Discord). You can’t even set up a decentralized twitter account!
To host governance votes of a shared wallet, people need to own the DAO
token / NFT. That token sale doesn’t happen without human intervention.
Someone has to get tokens into the hands of the community.
Many important roles, such as the discord community manager or the
digital artist, will be hired before the token sale.
There were 24 days from the LinksDAO
NFT Mint (Jan 1st) to
their first governance
vote (Jan 25th). A decentralization maximalist might argue that
Links DAO had no right to append “DAO” to their name until January 25th,
and even now might not deserve the title. We at Barracuda say ignore the
decentralization maximalist (he’s probably a miserable twitter troll
Boldly announce your intentions from day 1 and the community will help
you make your vision a reality. Then, as you scale and mature,
How do you progressively decentralize?
There’s no one size fits all approach to scaling your DAO, but you will
probably find yourself shifting through the phases above as you build
out your community. Don’t feel the need to rush - setting up a
successful decentralized community takes time!
It’s worth noting that because full decentralization requires all proposals be carried out via smart contract, it’s completely infeasible for most DAOs today to be fully decentralized. If funds need to touch traditional finance rails, or the DAO is interacting with real world assets, real people will need to be trusted to see through work off chain. It will take years for the Defi tools to exist to enable seamless interaction between DAOs and traditional businesses. We’ll need to trust core team members more than we may like to at times. Fortunately, there are a lot of good people working in this space and the risk is worth it as we are all experimenting to unlock the power of DAOs.