Dear Bankless Nation 🏴,

Following up on the announcement made in early July, the Transition Council started the shutdown of guilds and departments, which is evident in the visible cleanup of our Discord server. As part of this shutdown, they are also recovering outstanding DAO assets that remain in these DAO subgroup multisigs. The Transition Council requests that assets remaining in these groups’ multisigs be returned to the DAO Treasury.

The discussion around purpose has been the elephant in every room over the past few weeks. From the community call to the governance meeting on Mondays, purpose and value have been central to discussions. A poll is up on the Forum in response to this important quest to redefine our purpose. Head over and vote based on what resonates with you and what you feel is best for the DAO.

This week's editorial addresses the issues raised during the community call, aiming to keep everyone informed about what the community feels should be important as we continue to reorganize and transition into a more refined version of ourselves.

Remember, it's up to us to pioneer a better community, so we should keep making our voices heard.

Have a beautiful weekend, frens.

Contributors: Lucent, Boluwatife, Tonytad, Kornekt, WinVerse

This is an official newsletter of BanklessDAO. Please subscribe and share to help us grow our audience as we fulfill our mission to build user-friendly crypto onramps.

Share

🏃‍♀️ Catch up: Listen to this week's Community Call recording.

DAO Structure

Author: Boluwatife

This week's discussion was an active continuation of the conversation surrounding DAO redefining and the path forward. The highlights during the community call centered on "structure." Many members expressed interest in potential structures the DAO might adopt as the community moves forward. Various opinions were aired, but two stood out: the rule-based and the incentive-based structures.

Rule-based or Incentive-based Structure?

Supporters of the rule-based structure discussed how having such a framework would prohibit certain activities in the DAO, such as inactivity or making unauthorized decisions. The implementation plan would involve members agreeing to these rules before joining the server. It could be as straightforward as "This is the constitution of this DAO, and it applies to everyone who joins this server. Agree and continue." Proponents of this approach argued that if the community were to become legally registered, the community's constitution would be binding, the forums would be binding, and decisions made would be binding. Therefore, anyone who does not adhere to these rules would be subject to consequences.

Many opposed this idea due to concerns about enforceability, ambiguity, and vastness. They argued it would be too much to expect one person to enforce and remember all these rules, making it practically unenforceable. There's also the issue of anonymity, as many people enter the community anonymously, making it very difficult to serve or sue them if they were to rug the community and disappear. Some felt that having so many rules at once could stunt the growth of the community and its members.

Supporters of the incentive-based system highlighted that incentives are a more productive way to ensure alignment and growth than rules. They argued that people would be more interested in working when there are incentives rather than rules because if the DAO is doing well, they also get to benefit from it.

The proponents of the incentive-based structure detailed that a rule-based system would be harder to enforce, especially in a large community such as a DAO. While it might have worked in smaller circles where everyone knows everyone and could ensure enforcement, it would be less effective in a large system. With the population of the DAO, it would be easy for someone to find loopholes in the system or simply rug and leave.

It was emphasized that designing a new incentive structure, rather than focusing on rules, is key. Additionally, planning for bad actors that might come along, whether it's the multisig or someone else, is crucial for the DAO's continuity and stability.

What Attracts You to Decentralized Governance?

The community call concluded with members sharing their personal motivations for engaging in decentralized governance. This segment provided valuable insights into the diverse perspectives within the DAO and highlighted the core values that drive participation in this innovative form of organization.

Coffee-crusher emphasized the accessibility of decentralized governance, stating, "The ability to make proposals and vote on Snapshot without necessarily meeting a specific threshold is what draws me in." This sentiment underscores the importance of lowering barriers to participation, allowing a wider range of voices to be heard in the decision-making process. It reflects a desire for a more inclusive governance model where influence isn't solely determined by wealth or status.

Links focused on the transformative potential of decentralized governance, saying, "It's not just about making decisions, but having the ability to effect real change. No kings. No one person can override the community." This perspective highlights the shift away from centralized power structures, emphasizing the collective strength of community-driven initiatives. It speaks to the empowerment that comes from participating in a system where every voice has the potential to shape outcomes.

0xZFi shared a more personal motivation, expressing a desire for active involvement: "I want to have a voice and participate. It feels way more immersive than traditional governance models." This comment reflects the engaging nature of decentralized governance, where participants can experience a deeper sense of ownership and connection to the decision-making process. It suggests that decentralized models can foster a more engaged and invested community.

Droste.eth offered a philosophical take, stating, "While community governance might be messy and complex, it's better than a well-ordered private monarchy. Being orderly is nice, but is everyone happy? Decentralized governance actually addresses problems that humans have been grappling with since we started organizing." This perspective acknowledges the challenges of decentralized systems while asserting their superiority in addressing long-standing issues of fairness and representation. It suggests that the potential for broader satisfaction and equitable outcomes outweighs the complications of a less hierarchical structure.

TheThriller expressed excitement about the technological aspects, saying, "Blockchain technology and how it enables decentralized governance is what attracts me. I want to experiment with these types of decentralized governance due to the new technology. The development of technologies that make decentralized communities possible is particularly exciting." This viewpoint highlights the intersection of technology and governance, emphasizing the innovative potential of blockchain in reshaping organizational structures. It reflects an enthusiasm for pushing the boundaries of what's possible in community organization and decision-making.

These diverse perspectives collectively paint a picture of a community drawn to decentralized governance for its potential to democratize decision-making, empower individuals, and address systemic inequality. The variety of motivations demonstrates the broad appeal of decentralized models and suggests that such systems can accommodate a wide range of interests and priorities.

As the DAO continues to evolve, these insights into members' motivations can serve as guiding principles, ensuring that the development of governance structures and processes aligns with the values and aspirations of the community. The enthusiasm and thoughtfulness expressed by these members indicate a strong foundation for continued experimentation and growth in decentralized governance.

There are still conversations happening on Forum, make sure to lend your voice and have an amazing week ahead 🥂

⛴️ BanklessDAO Content

🧠 Crypto Sapiens

🗞 Layer 2 Review

Thanks, Bold!