How to Set a Dao using DaoDao
Dao
Dao is an internet-native organization known as a decentralized autonomous organization (DAO) or decentralized autonomous corporation (DAC). DAO is a community-led association, club or group of investors which places its governance in the hands of its members while relying on smart contracts for transparency and trust.
Dao can be traced back to The DAO of 2016, the first of its kind built on the Ethereum blockchain. The DAO of 2016 later failed due to challenges of nascency. The DAO died but Dao(organization) exists to date and has emerged from various blockchains today. While Dao is becoming an essential part of the crypto space, more projects have developed to bring easiness to its setup. The DaoDao of the Juno chain offers potential people the tools for setting up their Dao.
How To Set up a Dao Using DaoDao
Launch the DaoDao frontier, connect your juno wallet and click on create.
Dao Structure
There is Membership-based Dao and Governance Token-based
Membership-based Dao operates on the presence and decisions of members alone. No governance token means no need to stake any coin before members can vote on proposals.
As for the Governance token-based, the members of the Dao will hold the Dao token to gain access to voting or creating proposals.
Choosing a Governance Token Image
In the previous image, the circle spot that has a cross sign is hinted at, when clicked, it will display what is in this image for the Dao image url to be added. After adding a link, click on done and continue.
Vote Configuration
At this stage, there is the choice of creating a new token or using an existing token as the Dao governance token. Choosing to create a new token will lead to setting up the token symbol and token name.
Core Contributors
Here, the addresses of the core contributors can be added to the Dao by clicking on “add member.” Core contributors are usually founders of a Dao project on whose shoulders the responsibilities of the Dao rest in the first stage.
Voting System
All these settings are essential for your Dao:
Voting duration is the number of weeks a proposal will stay on-chain accepting the votes of members. After this period, the on-chain proposal expires and if a quorum is reached, everyone will be able to see if the proposal has passed or not.
A proposal deposit is the number of governance tokens an address must have before they can put up a proposal for the Dao.
Members need to stake their tokens before they can participate in Dao governance. The bonding period for staked tokens is decided while setting up the Dao.
Click on review and then create your Dao within the blink of an eye!
Stake Token
Now, members need to stake some amounts of the governance token to increase their voting power and have permission to submit proposals.
Next After Staking
After staking, it will display the voting power and the remaining balance of the governance token in the wallet. Add the token to Keplr to make it visible in the wallet.
Writing On-chain Proposals
This is the first proposal for Meme Dao. The proposal title and description help members understand the purpose of a proposal and what happens when the proposal passes.
After writing the necessary information and adding action, the proposal can be previewed and published.
Adding Actions To Proposals
These are the list of actions that can be added to a proposal without writing a string of code. Since my proposal is about funding a wallet address, send is the action to choose.
Where To Spend From
Next is to add the amount and change the token from $juno to $mend or the Dao token.
Proposal Submitted
And WoW! This is an on-chain proposal from MemeDao. All addresses that are members of this Dao can vote on this when they open the DaoDao frontier.
Voting On-chain
The casting of votes can be done by all the members of the Dao including the member that submitted the proposal.
Quorum
Turnout is the percentage of people that have voted on a proposal against those that haven’t voted. If turnout is poor, the quorum is not reached, and the proposal will not pass.
Voting Twice
No one can vote two times. One vote, one wallet.
Quorum Reached
Meme Dao has only two members now. The two members have voted in support of the proposal. Therefore, the proposal has reached the quorum and has passed by default. After the voting period, the smart-contract will send the proposed amount of coin to the wallet address submitted in the proposal action.
Conclusion
One of the major use cases of Dao in web3 and in real life is that it places the trust of a collectively owned treasury in the control of programmed computations (smart contracts). It brings trust, transparency and fair interest representation to the community.
Create your Dao with Daodao juno here :
Learn more about creating a Dao on Daodao here:
https://docs.daodao.zone/docs/introduction/welcome-to-dao-dao
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