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Create a New DAO
An overview before the step-by-step guide to creating a new DAO.
Only a Social Media Verified wallet can create a new DAO. The action is launched from the DAO List View for a Manager Role.
Governance Tool - DAO tokens vs. Badges
If you use your DAO token as a governance tool, then the main DAO creator must create a new Staking Engine that emits governance reward with your DAO's native token. The creator is responsible for providing such an emission balance. A sub DAO creator can share the existing Staking Engine created by the main DAO.
Any user can stake into the Staking Engine and earn rewards, even if they don't participate in governance. But when they do (being Managers in the DAO or to participate in public voting), they must pledge (lock up) their staked tokens during the period of their duties. They can only unstake (unlock) these tokens when their duties are released.
Badge not only identifies your sub community members, it also effectively protects the community from "whales" who hold large amount of DAO tokens, because badges are earned and assigned based on member contributions.
Vote Counts
- 1.DAO token only, no Badge. Votes are counted on the basis of a voter's pledged governance tokens only. Voters cannot unpledge until the voting reaches a conclusion. Managers cannot unpledge until their duties in the DAO is released.
- 2.DAO token & Badge mixed usage. The DAO can specify how to balance the voting power between the pledged tokens and the number of held badges. Currently, Ink Finance adopts the simplest scenario: a voter must hold at least one badge to enter voting, then the votes will be counted based on the pledged tokens.
- 3.No DAO token, Badge only. The number of badges held in a voter's wallet becomes the number of votes. Because the badges issued are not transferrable, the member's integrity is assured. However, there is no effective way of "locking" the badges in the user's wallet, they can use the same number of badges to participate in the voting of multiple proposals. This isn't exactly Sybil attack, but might be an issue that a DAO needs to consider.
Voting Power
Any DAO is constructed with a Board, with the creator as one of the Board Members. Other wallets can be added to the Board at the creation time, if they are verified on social media. Only Board Members can make proposals.
When a proposal is made, there are three supported voting powers:
- 1.“Board Only” proposal does not need public voting. Only the Board Members can vote on it.
- 2.“Public and Board” proposal requires a round of public voting. If the public round passes, it must be voted in the second round by the Board Members.
- 3.“Public Only” proposal only requires public voting.
The DAO creator can choose one of them as the default mode. However, the default mode can be overridden by a more democratic power, not less. The rules are:
- Default voting power of Board Only can be overridden by “Public and Board”, or “Public Only”;
- Default voting power of “Public and Board” can be overridden by "Public Only";
- Default voting power of “Public Only” can can be overridden by "Public Only".
Effective Public Voting
The DAO creator can to specify what participation level of public voting as effective, which is the the minimum voting wallets participating in the voting. This number is a default value, and can be overwritten when the Board Member makes an actual Proposal.
You are ready to go
Now, knowing the meaning of the parameters in DAO configuration, you can proceed to creating new DAOs.
After successful creation, you can see the newly created DAO in the DAO List View, along with all the other ones that are managed by you.
Last modified 7mo ago