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Good DAOs

💡 something to summarize what makes a good DAO.

What Makes a Good DAO

In the last few sections we have looked at what defines a Decentralized Autonomous organization and what considerations are important when considering how it should work. Now we will try to put that all together to describe a “good” DAO. But we still have to make some assumptions:

  • Anyone should be able to freely join and leave the DAO.
  • The DAO should not be constrained by a limit to the number of token holders or the number of actors who are able to participate in governance.
  • No individual actor or actors should be able to exert control over the DAO outside of the accepted mechanisms (token voting).

A Good DAO is an organizational structure that allows many disparate and previously un-aligned actors to come together and make decisions about a shared resource. In doing so, the DAO should operate in a way that is permissionless and neutral with regard to parameters that live outside of the decision making scope of that DAO.