A Closer Look at DAO Governance

What is DAO Governance?

In our previous article looked at some examples of prominent Decentralized Autonomous Organizations (DAOs) and some of the current issues associated with DAOs, including the centralization and decentralization spectrum and the optimal number of DAO members. The growth of DAOs is taking many forms and the diversity improves both the functionality and interpretation of the groups.

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Different Governance Models 

Friends With Benefits (FWB)

FWB has a governance framework that includes four roles:

• Governance - the $FWB token holders who vote for changes and engage with the governance through forums.
• Board - consisting of team members, advisors, and community members who focus on building effective strategies for community building
• Team Leads - members who manage the team of contributors. They are selected on the basis of their previous experience. They approve funds for bounties or rewards, set key priorities, and collaborative success.
• Contributors - members holding the $FWB token. Contributors power the team through active participation and are rewarded based on their contribution level.

Contributors receive calls to action to join the team based on their skill sets, experience, and interests. Team leads arrange weekly one-on-one meetings with the board to discuss challenges, priorities, and KPIs. Team leaders and the board report through monthly meetings with updates.

OrcaProtocol 

The Orca Protocol aims to construct governance around persons and around small working groups known as “pods.” Each pod has a Gnosis safe multi-sig wallet, ENS name, NFT image, and a dedicated pod URL. Because––in essence––OrcaProtocol is a constellation of small working groups, these small working groups are better able to move and decide on actions without affecting the larger group, which would create organizational friction.

Within each pod itself, there are different governance models:

• Dictator: where a person is serving as admin and has control.
• Token republic: token holders all serve as admin by making decisions on membership and asset management.
• Round table: no admins, and all decisions are made by the collective.
• High council: a group serves as admins to support the rest of the organization.
• Embedded admins: each pod would have one elected member to serve as the admin.

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GitcoinDAO

Gitcoin allows users to engage in platform administration by using their gitcoin tokens. Gitcoin is pursuing a gradual shift to total decentralization, with the community eventually taking over platform administration. Initially, Gitcoin stewards were entrusted with establishing policies for Gitcoin Grants. As of October 2021, this shift will be led by community "stewards."

The core operations of the Gitcoin governance process revolve around a variety of defined "workstreams," which appear to be basically broad categories. Public Goods Funding, Public Goods Prototyping, Sybil Defenders, and Progressive Decentralization are the main workstreams right now. 

Enlisting the cooperation of society to invest in public goods and creating criteria for numerous financing rounds is referred to as public goods funding. Sybil defenders devise techniques to keep Gitcoin safe from Sybil attacks. Gitcoin's architecture becomes more modular and simple as decentralization progresses, making community governance easier.

Gitcoin is a platform for a community of contributors and programmers that want to work together to build a more open network. Gitcoin continues to advance Web3, the distributed web, by providing a mechanism for allocating funds to key open source projects through an open governance structure.

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Bottom Line 

DAOs, as internet-native organizations, can transform corporate governance. While the concept grows and the legal gray area in which they operate is addressed, an increasing number of organizations may adopt a DAO model to help manage parts of their operations.

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