Bankless DAO - Charity DAOs | State of the DAOs
Charity DAOs | State of the DAOsYou're reading State of the DAOs, the high-signal low-noise newsletter for understanding DAOs.Gm and welcome to DAO life! DAOs have a half trillion dollar opportunity in the United States alone. With Americans donating $471 billion USD to charity in 2020, not-for-profit entities stand to improve transparency, accountability, and community leadership through the use of DAOs. What happens when you reorganize charities into systems that publicly show where each dollar is spent? Cheetah gives us a glimpse into what that world would look like. After that, we share the TL;DR on the latest DAO ecosystem takes and thought pieces, making it easy for you to cut through the noise and stay up to date on the world of DAOs. This is the current state of the DAOs. Authors: Bankless DAO Writers Guild (Adi G, Cheetah, Frank America, FreedomFighter, hirokennelly.eth, Teeleroo, Thalia_M, siddhearta, Jake and Stake) This is the official newsletter of the BanklessDAO. You are subscribed to this newsletter because you were a Premium Member of the Bankless Newsletter as of May 1, 2021. To unsubscribe, edit your settings here. 🙏 Thanks to our Sponsor: DAOs for Charity: A Golden Opportunity!by Cheetah Current OverviewIn a pandemic-battered 2020, Americans alone donated an estimated $471 billion to US charities. This was a staggering rise of around 5% from 2019. While donations are increasing every year, many charities only accept donations in denominations of traditional currencies. It will take some time for mainstream crypto donations to be accepted. On the hopeful side, Fidelity Charitable received $274 million in crypto donations as of November 2021. This is a progressive step, signaling the foray of crypto into charitable institutions. For example, Save the Children, one of the largest non-profits working for children’s rights and welfare, has started to receive donations in the form of cryptocurrencies and NFTs to further their cause. The Giving Block is another platform that provides hundreds of US non-profits access to tax-deductible crypto donations. DAOs may be the perfect vehicle to harness this tryst between cryptos and charities. For one, they help tackle some of the issues that are prevalent in today’s charity industry. Issues that are rooted in traditional organizational structures, such as:
These issues have lead to skepticism regarding the expected destination of funds and lower impact of funds. It’s pretty clear that today’s corporate tactics aren’t ideal for the charity industry. So what can we do about it? Enter DAOsFor the uninitiated, DAOs, or Decentralized Autonomous Organizations, are groups of individuals connected through a common interest. They are governed, in large part, on-chain through self-executing codes called smart contracts. Due to the very nature of DAOs, this technology offers newer and more favorable avenues for the charity industry. Blockchain technology brings value, security and innovation to the philanthropic world, which is only further enhanced by the operating structure of DAOs. Inspired by this, Christoph Jentzsch and Marvin Maistry pioneered a Charity DAO to streamline philanthropic giving as early as 2017. They highlighted some key advantages of using a DAO structure for charity:
Potential Issues and SolutionsIf this sounds too good to be true, it’s understandable. There are still many problems that exist which may or may not be easily remedied. First, minority token holders may be bulldozed by majority token holders who have the voting power to impose their will. While donors may be given voting rights within the DAO, there may be conflicts between them as to how the funds are disbursed. Second, there may be lazy voters who hoard voting rights but refrain from exercising them. Third, members may be misaligned with the DAO’s mission and make proposals that are contrary to its values. These are not very difficult problems to solve and there are several solutions to address them:
This is merely a partial list of potential solutions to tackle some of the issues. Financial solutions such as capping the funding per proposal and funding per month, or staggered funding mechanisms may help manage donations as well. Other solutions including options to donate without receiving voting rights could be explored if circumstances deemed it necessary. On top of these possibilities, we are seeing numerous philanthropic and social-impact DAOs cropping up with a noble vision. Here are some of them:
Thoughts for the futureTraditional charities have faced their challenges and have seen some reform in the recent past, but the overwhelming benefits of using a DAO structure (enhanced by the power of blockchain and cryptocurrencies) offer a seamless alternative for charities. A Charity DAO structure receptive to crypto donations will offer a decentralized, transparent, and secure way of handling funds. It allows the donors to be in complete control of their donations — transferred in a fast and traceable manner to allow maximum beneficiary alignment — and even restrict release schedules based on KPI metrics. Though adoption may be slow, this integration of DAOs and charities is one worth pursuing. When the road to the mountain is unfathomably distant, “just take the next step”. The first step is always the hardest, and for charities it is to embrace Web3 systems and a DAO structure for growth and development. Actions steps📖 Read DAOs empower social good with yield-generating DeFi products by Sarah Jansen (Cointelegraph) ⛏️ Dig into The Mirrortable by Balaji Srinivasan 🎧 Listen How Crypto Can Be Good for the Environment | Klima DAO by BanklessHQ 🙏 Sponsor: Parcel - Simplifying payouts for DAOs. DAOs at a Glance
if bitcoin is digital gold. DAOs are digital LLCs.
A DAO is like a crypto company, and can make $$$ with:
- no office
- no CEO
- no employees
- no job interviews
Here's 3 examples: The Five-Point Palm Exploding DAO TechniqueAuthor: Anisha.eth To create a Minimum Viable DAO (MVD) there are 5 broad concepts to consider:
Three questions for the founding team to consider are : a) What purpose am I trying to communicate? b) Why do I need a DAO to achieve this purpose? c) What is the DAO meant for?
Who will own the creator economy? A web2 vs. web3 showdownAuthor: Justine Moore After a decade of inaction, web2 platforms have finally realized the need to help their creators make money. Meanwhile, web3 platforms are pioneering a new form of monetization. These web3 platforms empower creators to own their audience and enable fans to financially benefit from the creator’s growth. In the past, web2 social platforms took a “hands off” approach to creator monetization. This changed in 2020 when Tiktok announced its creators fund which pays users from its balance sheet. Other social platforms followed and allocated funds to pay creators. However, most social platforms don’t want to pay for content forever. Now they’re building features that allow creators to directly monetize their audiences. One question is “Do consumers actually want to pay the creators for extra content or special access?” However, the bigger question is whether or not the fan/creator relationships on web2 social apps are a fit for more active forms of monetization. Web3 platforms argue that layering creator monetization on top of existing social apps is the wrong approach and that web3 platforms will provide a better model for creators to capture value from their creations. They allow creators to truly own their audiences, without the interference of a centralized authority, and enable followers to invest in the creator’s future success. Fans invest to “own” a piece of the creator’s content and the creator makes money from the original sale of the asset or token. Fans are rewarded for being early supporters and can trade their ownership on secondary markets, if they choose. The vision is compelling, but there are challenges in execution. Two that stand out are
'We're Freaking DAOing It': The People Who Think DAOs Are the Future of WorkAuthor: Jeff Wilser We hear a lot about how DAOs are the future of work, but what does working in a DAO actually look like? For some, it’s waking up early, sliding into Discord, skipping meals, and putting in the time until sleep, only to do it again the next day. And they do it again because it’s exhilarating, and some hope, profitable. DAOs are so appealing to some because of:
DAOs are flatter than traditional organizations, but they are not without structure. Some DAOs have work streams to coordinate activity, and their operations look more like a normal business than you might think, with meetings, memos, and deadlines. The big difference: blockchain-enabled incentives. DAOs are a curious mix of socialism and capitalism, but:
Whether you disagree about what a DAO is, research suggests that those who contribute to them enjoy themselves, but whether this enjoyment comes from the work or the allure is harder to discern. One thing we can agree on: remuneration is uncertain. Salaries are rare, and most people are paid per project or bounty. Such uncertainty may be no different from the regular gig economy: work is plentiful and there doesn’t appear to be much concern for job security. If DAOs sound like an organization of in-demand freelancers, you could be right, and it’s up to DAOs to ensure that they become something more than just that. DAOs Aren’t A Fad — They’re A PlatformAuthor: Jeff Kauflin
Ecosystem Takes
Our Decentralized Selves: Creating in a Post-Identity FutureAuthor: ItstheElword with rafathebuilder 🔑 Insights: Web3 enables a post-identity landscape where creators enjoy the freedom and empowerment of discarding their past. In realms where revealing one’s identity is linked to responsibility, the pseudonymous individual is at a disadvantage. However, the choice to blur lines by wearing a mask in some scenarios and removing it in others is becoming the norm, with plenty of cultural examples to reflect that masking is more common than we think:
Token Engineering is the Future of Organizational DesignAuthor: Gideonro 🔑 Insights:
DAO Challenges presented by TallyAuthor: Leticia Bovino & Delleon McGlone 🔑 Insights: DAOs are an ever-growing ecosystem with many opportunities and challenges that will evolve over time. DAOs and their members must be equally aligned for sustainability, longevity, and success. If DAOs don’t have accountability, consistency, or transparency, then they can’t expect their contributors to be accountable, consistent, and transparent either.
Creator Economy - Potential trojan horse of web3?Author: doorvesh_eth 🔑 Insights: The new creator economy could be what brings Web3 to the mainstream. The benefits are massive: creators get to keep ownership of their products, retain their profits, and utilize new ways to share their content through NFTs.
How to Get the Hottest Crypto Jobs: Start by Working With a DAOAuthor: Charlie Wells and Claire Ballentine 🔑 Insights: Crypto is influencing the way people enter the job market. The value in attaining crypto-based skills and experience as the space expands and the demand grows. The world of crypto levels the playing-field of attaining work because it does not discriminate by age, gender, or race.
DAO Spotlight: Index CoopThe Index Cooperative is a community of finance professionals, engineers, DeFi experts, meme-makers, content marketers and crypto enthusiasts focused on making crypto investing simple. The Index Coop is on a mission to build a globally distributed, community driven and owned asset manager, powering a range of index products which help anyone with a wallet or address gain access to a range of crypto investment themes. They want to help everyone benefit from the rising tide of crypto innovation. The Index Coop has launched several products that were released in collaboration with BanklessDAO. These include the BED index and the GMI index. The BED index is a product that holds the assets Bitcoin, Ethereum, and DPI in equal parts. This allows you to get the stability of the largest crypto protocols and exposure to DeFi. The GMI index focuses on high growth, early stage DeFi projects which are not yet considered “blue chip”. Are you interested in getting involved? Follow @indexcoop on Twitter, join the Discord, or complete their first quests! Go to indexcoop.com to learn more! Get Plugged InEvent Highlights🌄 ETHDenver - February 11-20, 2022 - ETHDenver is a member-owned Community Innovation Festival. With the genesis of SporkDAO in June of 2021, ETHDenver is the first event-based DAO in the world. The ETHDenver #BUIDLATHON is about bringing diverse creativity around a common purpose. Distributed computing is the future and Colorado is a leading community supporting this emerging technology. Our event empowers participants to shape this new world, while cementing the Rocky mountain region and the State of Colorado as a thriving hub of Ethereum and blockchain innovation. 🏔 DAODenver - February 15-16, 2022- We're going to Colorado, come with us! What will be one of the biggest DAO events is coming in February alongside ETHDenver. Two full days of discussions with the most influential DAOs and DAO leaders, helpful community-run workshops, and great VIBEZ! Whether you want to learn more about evolving DAO governance models, or how to be a better collaborator, DAODenver will have it all. This event is completely DAO-led and managed! All proceeds go to DAODenver organizers and DAOists.xyz treasury with the goal of providing free information and best-practices for DAOs. Event info: 🎟️ Tickets 💰 Sponsor 🏝 Permissionless Conference - Tickets are on sale for one of the biggest DeFi conferences! Over 5,000 people will be attending in total and every two weeks 250 more tickets unlock. Once 250 tickets are purchased, registration closes and you’ll have to wait until the next release. Speaking of the next release, prices are currently at $967 and almost sold out. Speakers include our very own Ryan Sean Adams and David Hoffman, as well as many others. Join us on Tuesday - Thursday, May 17 - 19, 2022 in sunny Palm Beach, Florida for the event. 🧳 Job OpportunitiesGet a job in crypto! Do you like solving hard problems, care about building more efficient markets for everybody, and want to work at the frontier of decentralized finance? KeeperDAO is looking for full time contributors, with salaries ranging from $169,000-$722,000. There are positions ranging from engineering, recruiting, product marketing, copywriting, and design. Sound interesting? Sign up for our referral program and go full-time DAO.
🙏Thanks to our sponsorParcelParcel is a treasury management and payments tool that helps to manage payroll, expenses, grants, airdrops and more for a DAO. Parcel works with over 200 DAOs, including prominent ones like IndexCoop, BanklessDAO, Synthetix, Compound Grants, and Aave Grants DAO. Scaling financial operations for DAOs is a challenge, especially when there are multiple contributors with varying levels of contribution. Parcel helps to get rid of the spreadsheets with contributor management, 1-click mass payouts and automated recurring payouts. 👉 Our website: https://parcel.money/ 👉 Join our Discord. 👉 Follow us on Twitter. If you liked this post from BanklessDAO, why not share it? |
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