A toast to the pioneers
The early pioneers in the blockchain and DAO-space faced significant technical and logistical hurdles. The concept of a DAO, which is a decentralized and transparent organization that is run by smart contracts on a blockchain, was relatively new and untested. As such, there were many challenges associated with designing and implementing such a system. It didn’t take long until there were a wave of questions about how to ensure the integrity of decentralized governance, how to resolve disputes within the DAO, how to steer a ship without a captain, how to incentivize participation and engagement among members, and countless more fundamental processes that the collective human race had become accustomed to in “traditional” organizations.
The decentralized nature of DAOs initially presented massive technical challenges, obviously. Over the past 6 years developers and those fighting for equality and transparency as the new paradigm have made great strides in building out these technical tools that allow DAOs to operate with relative ease and safety. Despite these challenges, the early pioneers in this space have undoubtedly persevered and made significant progress in developing and refining the concept of a DAO.
We raise a metaphorical glass to the pioneers in recognition of their sacrifice and work.
Community and culture still reigns supreme in DAOs
Smart contracts and infrastructure that allow a decentralized organization reach consensus with finality on important decisions and actions are plentiful and oftentimes quite advanced. The biggest obstacles for DAOs have consistently shown to be coming from the difficulty in the components of human input and decision making.
DAOs have the power to unlock decentralized decision-making and community coordination on a level that is unprecedented in the history of mankind. But as much as we want to be idealistic, we must face the reality – a DAO will rarely “self-organize” into a goal-achieving, well-oiled machine. In this perspective, the DAO space lacks maturity and has much room to grow.
Learning from the greatest DAOs that have stood the test of time
“The DAO” is an inspirational and cautionary tale for many reasons. Although the concept gave inspiration to many watching in awe, the project was ultimately exploited through loopholes in the smart contracts.
Since then, many other DAOs have been launched, with varying degrees of success. Some, such as MakerDAO, Curve, and Yearn initially established strong and effective leadership and governance structures from inception, and have still managed to become successful, influential, and increasingly decentralized organizations. Others, such as Tezos and Sushi, have struggled with leadership and governance issues, and have faced challenges and controversies.
But with the backing of a community, DAOs are hard to kill. All these aforementioned DAOs and essentially all existing DAOs are still figuring out the best system for their needs, and they are constantly iterating their governance processes. Needless to say, although there is much to learn from these titans, no organization has got it all figured out.
Early DAO leadership – paradoxical to the blockchain ethos or needed to steer a rudderless ship?
The role of leadership in DAOs is different from that in traditional organizations. In traditional organizations, leadership is typically provided by a small group of individuals at the top of the hierarchy, who have the power and authority to make decisions and guide the organization. In DAOs, on the other hand, leadership is decentralized and distributed among the members, who can participate in the decision-making process and contribute to the governance of the organization. At least in idealistic thinking.* *In reality, the coordination of work for an aligned vision without the culture of contribution already in place, is near-impossible.
The success of a DAO depends, in part, on its ability to establish strong and effective leadership in the early stages of its development. This can involve setting clear goals and objectives, defining roles and responsibilities, and establishing decision-making processes and mechanisms that balance participation and efficiency.
Decentralized leadership in DAOs can be both a strength and a weakness. On the one hand, it allows for greater participation and inclusion, as all members have a say in the governance of the organization. On the other hand, it can also lead to confusion, disagreement, and inaction, as members may have different priorities and objectives, and may not be able to reach consensus on important decisions.
The “great” DAOs that were previously mentioned all have prioritized early leadership – the history of MakerDAO and its (still) continuing mission to decentralize itself is fascinating to study. I can continue on for pages and pages on case studies and all the recent trends in the DAO world, but I will spare you the time.
Evmos DAO’s Governance Council’s Role and Pledge
By establishing strong and effective leadership in the early stages of the development of our DAO, we are confident that we can overcome the challenges and capitalize on the opportunities of decentralized governance, and pave the way for a new era of decentralized and autonomous governance for Evmos.
We acknowledge that we are not perfect. This is not how we envisioned the DAO when we first started six months ago. However, we are fully committed to the true ethos of decentralization and equality. We pledge to always strive to act in a manner that is fair and just, and to work towards creating a decentralized world that is open and accessible to all. We recognize that decentralization and equality are fundamental principles that must be upheld in order for society to thrive, and we will do our best to ensure that these values are reflected in all of our actions.
We also want to emphasize that we are not trying to hold on to power or exert control over the ecosystem. We expect to be scrutinized every funding cycle, and even replaced if needed. Our goal is to accelerate the development of the decentralized ecosystem, and to create a future in which power is distributed among the Evmos Community. We will do our best to foster collaboration and cooperation, and to create an environment that is conducive to innovation and progress.
Progressive Decentralization
There are various ways in which we can progressively decentralize our organization and decision-making processes. We are not limited to one “hard guideline” that will create rigidity and friction in our growth. We plan to take bits and pieces from whatever methodology makes the most sense for our Community. Including but not limited to:
Gradual decentralization: This involves starting with a centralized leadership structure and gradually shifting towards a more decentralized model over time. This allows the DAO to establish a solid foundation and build trust and confidence among its members, before moving towards a fully decentralized governance model.
Hybrid decentralization: This involves combining centralized and decentralized elements in the governance structure and decision-making processes of the DAO. For example, the DAO may have a core team of leaders who are responsible for setting the overall direction and strategy of the organization, while also allowing for decentralized participation and decision-making through voting and proposal submission mechanisms.
Community-driven decentralization: This involves empowering the community of members to drive the decentralization process, through mechanisms such as decentralized voting and proposal submission, as well as incentives and rewards for participation and contribution. This approach can foster a sense of ownership and engagement among the members, and can lead to a more dynamic and responsive governance model.
Protocol-based decentralization: This involves using blockchain protocols and smart contracts to enable decentralized governance and decision-making. For example, the DAO may use a decentralized governance protocol, such as Aragon or DAOstack, to automate and facilitate the voting and proposal submission process, as well as the execution of decisions and the allocation of resources.
We can not be afraid to experiment with different approaches and combine them in creative ways; we will gauge the Community to find the right balance between decentralization and effectiveness.