2022 DAO Research Update: What Do DAO Builders Need?
Original Author: Aragon
Original Author: Aragon
Three key insights from our latest research
DAOs are probably growing faster than any industry in history. The DAO held a total of $500 million 12 months ago and now holds over $11 billion. This space is full of new use cases and attracts builders from all backgrounds. All of this activity brings new creators and members to the DAO who need to be understood and cared for.
In response to this, Aragon is also evolving, and over the next few weeks we will share the results of several expedited studies we have done to better understand how we can align ourselves with today's DAO creators. agree, meet their needs, and then answer the question: "What's stopping people from successfully creating a DAO?"
In this first update, we will list three themes that emerged from our research, which will determine the design principles that Aragon will prioritize in our upcoming products.
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complex → simple
1. Complex → Simple
With few exceptions, most builders end up with complications and confusion when trying to build a DAO. Some specific issues that arise are:
What kind of governance do I need?
Should I create a token?
How should I decide the token supply?
How should my tokens be distributed?
How to add liquidity to my token?
What are the legal implications of creating a token?
How can my DAO be gradually decentralized?
Are DAOs safe?
Most builders have a clear vision and goals in mind, but don't understand the implications of the technology choices they make. Some specific pain points mentioned were:
Too many tools are required.
These tools are difficult to use and/or require Solidity experience.
It can be difficult to separate legitimate and relevant information from the noise.
This leads to the conclusion that DAO software should remove as much complexity as possible and become more user-friendly. No-code/less-code solutions will help increase the appeal and accessibility of DAOs, while increasing the success rate of DAO creators.
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Monolithic→Modular
2. Monolithic→Modular
Until recently, most active DAOs were either DeFi protocols or Web3 infrastructure, which could exist on a one-size-fits-all platform. In contrast, the current wave of DAOs is a cornucopia of goals and ideas, each with correspondingly different needs. In our research, we talked to the following builders:
DeFi protocol
DeFi protocol
game guild
Funding DAOs
Invest in DAOs
Invest in DAOs
Learn/Teach DAOs
Media and Research DAO
NFT Collective
R&DDAO
Web2 Community Token
Web3 infrastructure
Web3 infrastructure
Each category has its own audience and is experimenting with new ways of working, expanding the definition of a DAO in the process.
We conclude that the diversity of DAOs drives the need for DAO architectures that are more modular and interoperable with optimal DAO tooling solutions so that DAOs can choose according to their requirements.
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static → mutable
3. Static → changeable
When creators come to web3 with an idea and enthusiasm, they take the time to immerse themselves in the space, using a variety of learning tools:
Content: Articles, videos, podcasts, and more.
Twitter conversation.
Actively participate in DAO.
Knowledgeable peers.
At some point, these builders stop learning and start testing: they "build a DAO" to see how it works and what they can do with it. These builders are usually just trying to get started with a small team and community. This is especially true when defining "membership" in their DAO. During the process, they ask the following questions:
What incentives do members need?
What is the correct role?
What can the core team do, what can the community build?
But sometimes it doesn't make sense to decide on parameters when future capabilities depend on a skill set or community that doesn't yet exist. To get around this, founders often try to involve people who have been through the process and can share their wisdom, but this is personally burdensome and not a scalable way for an educational ecosystem.
In contrast, established DAOs like Bankless and ENS are excellent knowledge bases, capable of absorbing newcomers who wish to learn the DAO's tooling techniques as well as cultural, community organization, and process soft skills. As an ecosystem, it makes sense to accelerate this layered collaboration between DAOs.
The long tail of DAO education involves finding content and tutorials on Twitter, YouTube, blogs, podcasts, and related websites. In such a rapidly evolving space, these resources quickly become outdated, and finding high-quality information amidst the noise can be time-consuming. Web3 has a strong need for up-to-date, well-researched educational content tailored to specific use cases.
