Working on Working Groups | TradFi to DeFi — Week 3 DaoPunks Cohort
Onward and upward!
Today’s article is a continuation of our weekly progress updates for the DAO Punks grant process! Previous updates for week 1 and 2 are here and here. Again special shout out to Ray for his excellent summary!
We’ve had another incredibly productive week at TradFi to DeFi! The parallel formalizing of many processes, from governance to incentives to community engagement, entails careful consideration and attention. Interpolating them makes the overarching process a bit like spinning plates on a unicycle, but we wouldn’t have it any other way.
As the great scientist Marie Curie once quipped, the way to progress is neither swift nor easy. Yet steady and stalwart does progress march on!… Okay, enough poetic waxing. Let’s get down to it!
Guilds and Governance Galore
All hands on deck! We’re kicking off a proverbial Continental Congress as we lay the groundwork for what becomes the scalable and inclusive TradFi to DeFi DAO governance model. A huge shoutout to Dustin for heading up the initial proposal for proportional voting via the Guilds and for intra-Guild decision-making. Keep in mind that this is just the initial draft of the governance proposal, and there are several nuances that we’re actively working out. If anything comes to mind regarding potential issues of additional benefits, we’re looking for feedback! It’s a DAO, after all. 😉
Some initial feedback received so far is that maybe some of these categories are redundant. Perhaps some can be combined (let us know what you think!). In our recent community call, we discussed the pros and cons on how voting might be structured as we adapt our governance model to the needs of the community. So let’s see what these working groups (aka “guilds” are all about!
While there were initially 10+ guilds in the TradFi to DeFi DAO, workshopping has led to consolidation and more pointed Guild roles. We’ve boiled it down to the following eight:
- Writing Guild (Blogs, Research, etc.)
- BizOps (Operations & OKRs)
- Governance (DAO proposal & bounty mgmt etc.)
- Community (Moderation & Management)
5. BizDev (Sales & Marketing)
6. Finance (Investment & Treasury MGMT)
7. Design & Graphics
8. Tech & Data Analytics
Building collaboratively is a moving process, but we’re pleased to say that we’re even closer to nailing down the initial Guild structure. Besides, as needed we’ll be adding more as we further diversify and grow!
Regarding DAO-wide proposals, each of the eight guilds receives a proportional share of the total vote for a total of 12.5%. We use the first-past-the-post system, meaning whichever side receives more than 50% of the vote wins! Easy peasy. We’ll explore how each Guild can reach a consensus in the next section, so stay tuned.
Now to spice things up a bit. If a vote applies disproportionately to a given Guild, then that Guild receives another proportional vote. In this scenario, there are conceptually nine Guilds with an 11.1% weight each. Let’s use an example.
Let’s say there’s a vote that all future articles should use Comic Sans font (that’s probably an international crime, but I digress). In this case, the vote will disproportionately impact the Writing Guild, meaning the Writing Guild’s vote gets counted twice for a total weight of 22.2%. This process is in place to ensure that the most impacted members of the DAO have a fair shake at having their voices heard.
Checks and Balances
An important consideration is that the TradFi to DeFi DAO isn’t immediately tokenizing. This slow-yet-steady process ensures we do things right before we set anything in stone. We’re here for the long term and want to offer a fully transparent view of how a DAO comes to life. Not to mention issuing tokens only to have to reissue them later is a major headache and can ruffle a lot of feathers, so best to ensure the ship is watertight before we plop it into the ocean of wacky internet money!
To that end, we want to ensure that the more active contributing members of TradFi to DeFi can protect what has been built thus far. That doesn’t mean a traditional corporate structure (Less Trad, more De!) by any means, but it does entail some important power balancing. With that in mind, the Standard Bearers (a working title) serve as benevolent guides within each established Guild.
The Standard Bearer of a Guild commands 40% of the vote within that given Guild. While this may initially sound like a lot, remember that TradFi to DeFi DAO is still quite young, and the Standard Bearer role is up for grabs in every Guild! Additionally, this configuration only kicks in when a Guild achieves a yet-to-be-determined number of members to avoid the potential for less incentivized actors to collude.
This carefully thought out proposal helps to balance the incentives of the TradFi to DeFi DAO in an evolving decentralized manner. While it does entail a rational concentration of voting power, it doesn’t place decision-making authority in a single Guild, body, or individual. To that end, it’s a fantastic start toward a formal Constitution or Governance Framework!
However, this is just the start. If you see something, say something, and that’s doubly true for these early stages of governance. We need all the help we can get to make this DAO stand the test of time and provide deep value to members and the entire crypto ecosystem.
Ring Ring — Pick Up Yo Phone!
We’re not calling collect, but we are calling for the collective. This coming week will entail some calls to action for TradFi to DeFi members as we step into a far more actionable segment of this initiative.
Here’s an example of getting involved:
Choose Your Guild
Initially, TradFi to DeFi DAO members will be eligible to select a single Guild to join. While the community is chocked full of talented individuals with interdisciplinary prowess, laser focusing on one Guild helps to maximize focus and fervor. This week, we call on all members to carefully consider their selection for this exciting move! Don’t worry if you find later that you’d rather participate in another Guild. You’re free to change at your leisure.
Join A Committee
We’ve heard some amazing ideas regarding potential monetizable avenues for the DAO. We truly have some brilliant minds in the group, for which we’re incredibly thankful! The first two Committees will review the viability of two potential opportunities: job board creation and protocol/product testing. We’ll have more information on these over the weekend, but if participating in these focused research groups interests you, we’d love your support and contribution.
Balance The Power
This one is the most important. Do you see anything in the working governance framework that might spell trouble for the DAO over the long term? Alternatively, does anything come to mind that can supercharge it? Whatever it might be, we’re all ears! TradFi to Defi DAO is a collective that we’re building together, and we’re more than happy to collaborate, iterate, and listen.
To that end, we recently collected some community feedback, here’s what we discussed.
In our recent community call, we discussed the pros and cons on how voting might be structured as we adapt our governance model to the needs of our community, and one thing quickly became apparent. We are experiencing a “chicken and the egg” problem.
🥚-> 🐣-> 🐥-> 🐓?
Does TradFi to DeFi work to get governance fully fleshed out before we ship our first projects? Or, should we get started and adapt the governance as needed while we build? There could be benefits to launching swiftly, but do we risk things falling apart if they’re not properly built first?
The overwhelming consensus from our last call was that we should focus more on shipping a revenue-generating opportunity for the DAO rather than work to get Governance 100% built. But, that’s not to say our efforts on governance are all for naught!
We believe in DAO Governance as a way to represent the voice of the community. It’s important to allow a feedback mechanism for contributors who put in the effort to build value for TradFi to DeFi. Trust, accountability, and effectiveness are paramount to a successful enterprise, and that’s exactly what we plan to build.
In service of this next step, we’ve organized a mid-week check-in to discuss our first idea, and it’s going to be BIG! Stay tuned, there’s a lot more to come!
We’ve made some amazing progress, but there’s still much to be done! As we move firmly into the holiday season, we can’t help but reflect on all that’s unfolded this year in TradFi to DeFi. We’re beyond blessed with many amazing minds willing to contribute their time, energy, and insights to building a community that supports industry newcomers, veterans, and skeptics alike.
Thank you for all you do from the bottom of our hearts. TradFi to DeFi wouldn’t be anywhere without you, dear reader, and this is just the start of an incredible journey. Let’s keep up the pace and brightly blaze a trail for future generations of wacky internet money enthusiasts!
See you next time!
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