How to create a DAO?

The full name of DAO is Decentralized Autonomous Organization, which is a decentralized governance organization and can also be understood as a decentralized autonomous organization. It is an organizational structure in which control is decentralized rather than hierarchical. DAO uses smart contracts on the blockchain, and participants use governance tokens to vote on proposed actions. Launching a new DAO is not difficult; the hard part is getting people on board, and keeping them around.

The term DAO has become a crypto buzzword in 2021, but the concept is popular because it has real value. According to analytics website DeepDAO, the total funding value of the DAO ecosystem is $10.8 billion as of October 2022.

DAO continues to grow as a community organization model, a means of quickly raising and distributing funds for social causes, or decentralized organizations acting on blockchain protocols.

The following are the basics on how to start a Dao.

01
Basic steps to start a DAO

Decentralized autonomous organizations use shared vaults ——Smart contracts (programs that are executed once criteria are met) and Tokens used for voting.

The first DAO, called "The DAO", was launched on Ethereum in 2016. While DAOs can be built on any blockchain that supports smart contracts, most of them choose to run on Ethereum.

Set up DAO. The following steps are required to establish a DAO:

1. Give the DAO a name

2. Create a mission statement

3 .Start the Discord server

4.Set up a Twitter account

5.Invite others to join

6.Start the governance token

7.Establish a fundraising mechanism

8. Set up snapshots or other tools for voting and recording member contributions

Each DAO needs a name that represents its mission, such as ConscipalDAO, FreeRossDAO, Ukraine DAO, and AssangedeDAO.

For example, let us imagine and simulate, if we want to start an Explorer Club DAO, how should we do it?

You can think about it for a while before continuing!

Here is an example assuming we want to build a Discovery Club Dao, then what you need to do is:

1. Name: Discovery DAO
2. Set the DAO type: Education/Club
3. Create a mission statement: Fund and promote exploration of unknown places and preserve historical objects, works, and sites. The Discovery DAO is dedicated to funding individuals and organizations working to explore and preserve history. The DAO will donate all funds raised outside of operating costs to charities, schools, museums, and global organizations.

Next, we want to set up where the DAO will be for member engagement, community building, and announcements. The most commonly used platforms are: Twitter, Discord, Telegraph.

Twitter: Whether you like Twitter or not, it’s a great public square for advocacy programs.

Discord: If any Web2 application still exists in Web3, it's Discord. It was once the basis for connecting with gamers, but now it has also become the organizational base for DAOs. DAO leaders love Discord for its ability to organize thousands of people into assigned roles and form working groups.

Telegram: DAO can also use Telegram to create groups and collect members. You can choose between Discord and it.

02
What tools can be used to launch a DAO?

Here are some popular tools for launching DAOs:

1.DAOhaus
DAOhaus is a DAO protocol used to connect Existing DAOs and create new DAOs based on the Moloch framework.

DAO can be launched by setting several parameters:

1) Type of DAO being launched: Guild (to provide services together); Club (for almost no financial decisions); Venture Capital (for large financial decisions) ;Grants (to distribute wealth); and Products (to manage products or agreements);
2.) Member's address.

2. Fill in the metadata of the DAO, such as name, social media and website link

1) Collab.Land: Collab .Land is not a tool specifically designed to launch a DAO, but is a popular tool used by DAOs to regulate membership. It does this by verifying that each member currently holds a token for the DAO, allowing access to the DAO's various Discord channels, and kicking out members who no longer hold a token.

2) Aragon:
Aragon is an open source platform for launching and maintaining DAOs on the Ethereum blockchain. Aragon offers two main products: Aragon Client, a toolkit for developers to create online organizations designed to increase transparency and customizability, and Aragon Govern, a DAO governance framework with on-chain execution and plug-in dispute resolution.

3. Fund Management Tools

Eventually, the DAO will need a treasury to store its funds and manage its tokens. Deciding which instrument to use depends on the group's needs and capital size. DAO will require a compatible wallet such as MetaMask, WalletConnect or Portis.

1) Gnosis Safe:
Gnosis Safe is an Ethereum wallet that requires a minimum number of people to approve transactions before they can occur. When the DAO wants to take a course of action, it is voted on by the members of the DAO (see snapshot below) and then executed by a core group of signers, called a multi-signature. With Gnosis Safe, users can define a list of signer accounts and the desired number of signers, so no one DAO member can independently transfer funds.

2) Syndicate Web3 Investment Clubs:
To launch a Web3 Investment Club on Syndicate, founders need to connect a wallet like Metamask to the Syndicate network. Deposits will be collected in this wallet and any existing assets in the wallet will be visible to all club members. Once the investment club founder chooses a name, the platform will assign a club token symbol. The syndicate investment club can then become a repository for DAOs built around it.

4. Voting Tool

After establishing the treasury, the DAO will need a way for members to vote on proposals. Snapshot is by far the most popular tool. It is a decentralized voting system that allows users to create proposals and vote off-chain, meaning voting - without exchanging cryptocurrency - uses ERC-20 tokens or even NFTs to demonstrate voting power.

5. Fundraising Tools

1) Juicebox:
Think of Juicebox as a Web3 version of Kickstarter. Projects use Juicebox to raise funds from their community through smart contracts on Ethereum. Projects can design fundraising pages and funding structures, and define how funds and rewards will be distributed.

2) Mirror:
Mirror is best known as a blogging platform built on blockchain technology. But in addition to publishing articles, DAO can also use Mirror to conduct crowdfunding projects using Ethereum smart contracts and convert posts into NFTs.

03
Summary

From trendy DAOs like Digitalax, to DAOs formed around buying sports franchises, to DAOs like Maker, which act as DeFi central banks, DAOs come in various flavors.

Friends, what kind of Dao do you want to create? Welcome to communicate in the comment area!

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