A lot has been written about the importance of diversifying DAO treasuries in the name of liquidity/capitalization. Today, let’s talk about some of the methods DAOs with publicly traded governance tokens might utilize to raise capital. Specifically, we’re going to focus on the pros and cons of private versus public capital and three specific structures for public capital auctions .
Something to note: these are all ways to diversify at scale (i.e., in ways other than simply selling small chunks of tokens on an exchange). Any DAO with a floating token can obviously sell on the open market, but they usually can’t make a dent in their capitalization needs without putting material selling pressure on their governance token given the relative lack of liquidity. These are all methodologies that allow DAOs to alleviate that concern while still raising the funds it needs to operate.
Written by 0xkydo (@0xkydo).
Metagovernance has been a recurring topic in the discussion of governance in different crypto protocols. In this article, we will define metagovernance as holding one DAO’s token in order to influence decisions in another DAO(s). This definition is borrowed from this post.
There has been a cascade of talent flowing into DeFi in the last year. The DAO structure provides community members and contributors alike with greater autonomy and the freedom to work without the hindrance many of us have experienced in traditional workplaces that depend on cubicle culture and a panopticon-like approach to supervision.
Many DAOs are trying to onboard more non-technical contributors and scale their communities. No DAO uses the same approach, but it’s undeniable that small working groups empowered by token holders can more effectively scale a DAO than putting every decision to a governance vote.
The overwhelming majority of DAOs hold over 90% of their treasury in the native tokens.
While this demonstrates conviction in the future of the token, it also poses serious risks to the DAO, hampering its ability to make reliable budget projections and to fund innovation and ongoing operations.
Written by: Shreyas Hariharan (@HelloShreyas).
More complex behavior has moved to the digital world, but our tools to coordinate in a digitally-native way haven't evolved at the same pace. DAOs are the defining coordination mechanism of humanity. They champion values of decentralization, programmability, and community ownership. Llama aims to be at the forefront of this innovation by building infrastructure that helps DAOs flourish.
DAOs enable communities to encode decision-making and transparently govern over a shared pool of resources, i.e. a community treasury. Over the past year, Llama has worked with some of the most prominent DAOs including Aave, Uniswap, Gitcoin, PoolTogether, Fei Protocol, Index Coop, FWB, among others. We’ve helped them develop treasury strategies, design liquidity programs, construct on-chain indices, and build dashboards and financial reports.