Step 1: Intro To Impact DAOs
1/7 steps beginners course on how to Impact DAO. Inject the basics 💉
Step 1: Intro to Impact DAOs
Definition
Impact DAOs are a category of DAOs (Decentralized Autonomous Organizations) whose core purpose is to do good to people and the planet. DAOs are a radically new way to organize on the internet around the tenets of decentralization of power, community governance and transparency.
How do you define core purpose?
Everything you do everyday has to be centred around your core purpose which is either to do good to people or the planet. It should not be an after thought or a side mission. It should be your core mission.
Impact DAO application
Impact DAO structure can be applied to any cause and any setting be it small neighbourhood clean up to large distributed effort on the internet for a cause.
In web3 so far we’ve identified 5 types of Impact DAOs. Which category do you belong? 🤔
🚀 Enabler
Enabling impact, not directly delivering. Think Gitcoin (fundraising), Lex DAO (legal infra), Impact DAO Media (impact dao infra).
❤️ Social Impact
Financial and social Inclusion. 40 acres (social inclusion) Impact Market (financial inclusion), Pact DAO (city based mutual aid)
🌳 Climate: Kokonut DAO for agriculture, United Species DAO for climate resilience and adaptation of endangered communities, onchain carbon credit like Klima DAO and DAOs around tokenization of natural resources.
🧬 DeSci: Decentralizing scientific research publishing, grant making, patents. Also technology transfer accelerator and innovation hub like Frontier DAO. Other DeSci DAO examples include Vita DAO and Valley DAO.
🌐 Network State: Highly aligned minds on the internet forming borderless world. Kift DAO, Cabin DAO are great examples of DAOs that are network state in making.
What is D, A and O of DAO
D: Decentralized and distributed community
A: Autonomous means sovereign. Being on public blockchain means you cannot be tampered and stopped.
Did you know that Patreon suspended the nonprofit Come Back Alive fundraising for Ukraine while Ukraine DAO continued to fundraise without any interruptions.
O: Organization, group of people who work together.
Remember decentralization is a journey, strive for progressive decentralization and start first with the O of DAO
Why DAO
There are many advantages to being a DAO. Firstly you build with the community. Huge advantage of having the community involved from day 1. Decentralized power, radical transparency and mission first approach are some of the advantages.
Our study of 30 Impact DAO builders reveals some of the DAO model’s advantages:
As an internet-based organization, it is borderless and open. Anyone from anywhere can participate.
Fast and permissionless to set up.
Mission-first orientation - infrastructure can come later.
Access to global talent and expertise.
Decentralized power and decision-making.
Built-in incentives for mission-aligned actions. The community decides on the activities and rewards people for actions that create value.
Tokenomics to fund operations and impact without reliance on donors.
Peer-to-peer transactions eliminate intermediaries (and associated fees).
Radical transparency with the use of blockchain, every transaction is accounted for and publicly viewable.
Ability to engage donors, volunteers and other stakeholders through DAO governance processes.
Internet-level scale and speed.
Efficiency thanks to automation through smart contracts.
Fast, easy and low-cost crypto fundraising.
Censorship resistant.
Go Deep: Why Impact DAOs are the future of organizing.
DAOs are less of a crypto thing and more of a web3 thing. I think web3 has so much potential in solving nonprofit inefficiencies - Kimbal Musk, Founder Big Green DAO
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