When we hear about Decentralized Autonomous Organizations (DAOs), we often picture sprawling communities with thousands of token holders scattered across the globe. But just as not all businesses start as multinational giants, DAOs don't need to begin on a massive scale. In fact, there's a compelling case for them to start small.
Consider traditional businesses: while we know of behemoths like Facebook or Google with their vast workforces, countless startups kick off their journeys with just a handful of individuals. Take, for instance, Instagram, a small startup with 13 employees that has made a significant impact in the social media space and was acquired by Facebook for 1 billion dollars.
Why do we often assume that DAOs must begin large and figure things out along the way? It's time to challenge this notion. DAOs can harness the power of starting small. Whether it's a one-person initiative or a small founding team, the DAO framework offers an ideal foundation. It enables them to efficiently manage finances, monitor progress, and even establish themselves as conventional companies if needed.
Starting small isn't synonymous with starting weak. It's about beginning with agility and adaptability. DAOs can kickstart their journey with a close-knit team, possibly just a few members, and gradually scale up. During their initial year, their core team might consist of at most ten individuals. Only when they've validated their product-market fit and potentially attracted investors would they consider token issuance for community participation and further decentralization.
Let's look at the history of DAOs for inspiration. Gitcoin, for instance, started as a one-person project when Kevin Owocki developed the initial code. Later, two co-founders joined, and a few more contributors came on board. But it wasn't an endeavor with thousands of participants from the outset. It began as a small startup. While they eventually created a community and decentralized, they started small and could have chosen to remain that way, benefiting from the flexibility and efficiency that small organizations offer.
In conclusion, DAOs should not be synonymous with large communities. They are, at their core, onchain organizations that can be tailored to any size and purpose. It's time to break free from preconceived notions and explore how this technology can empower small entrepreneurs to launch successful ventures. DAOs offer a new paradigm where starting small is not a limitation but a strategic advantage.