The Different Types of DAO Governance Models Explained
Did you know that there are different kinds of DAOs? Even though the principles of a decentralized autonomous organization remain the same, there are various ways to implement them. This article explains the different types of DAO governance models with examples.
An autonomous organization is a business entity that operates independently and has its own rules or protocols to guide its operations, performance, and responsibilities without human intervention. And a DAO is an autonomous organization built on blockchain technology.
Furthermore, there are many benefits of operating as a DAO. For example, it grants complete autonomy and transparency to all members, which means they have no fiduciary obligations.
There are various types and ways to implement a DAO. Here’s what you need to know about different kinds of DAO governance models:
A DAO constitution is a governing document that outlines the internal rules of a DAO. It also serves as a guide to members when they are making decisions on important matters.
The principles of a DAO constitution are similar to that of a real-world constitution. A DAO constitution can be written on paper or programmed into a blockchain network. A DAO constitution is not a legal contract.
If a dispute arises, the courts cannot intervene and enforce it. A DAO constitution is a set of rules that guide the community on how to make decisions. It also lays out the guidelines and principles that the community members should follow while making decisions.
Finally, a DAO constitution can also be called a “self-governance” because it doesn’t rely on any third party to govern or manage the community.
-Friends with Benefits DAO
Friend-with-benefits (FWB) relationships are casual and not considered long-term commitments.
An FWB DAO is a distributed autonomous organization built on the Ethereum platform that matches friends with benefits. The FWB DAO allows users to create a profile and publish information about themselves to find friends with benefits in their area.
This DAO is a decentralized application that runs on the Ethereum blockchain. The FWB DAO is a decentralized autonomous organization with no central authority managing the network.
All the users who join and create a profile with the FWB DAO are considered members and have voting rights.
Juicebox DAOs refer to the first decentralized autonomous organizations that are powered on smart contracts on the Ethereum blockchain.
Juicebox DAOs are a set of social experiments and games that test the viability of decentralized autonomous organizations.
The Juicebox DAOs explore the viability of decentralized autonomous organizations through experiments and games. The three juice box DAOs are “The Great Piggy Bank Experiment,” “The ENS Game,” and “The Truth or Dare Game.” The Great Piggy Bank Experiment is the first decentralized autonomous organization that holds a token sale to fund its operations.
The Piggy Bank is a smart contract that acts as a central hub for receiving funds and issuing tokens. The Piggy Bank essentially holds the money of all funders in escrow and issues tokens according to the amount of money each person invested.
The ENS Game is a decentralized autonomous organization that operates on the Ethereum Name Service. ENS is a service that provides human-readable addresses for Ethereum wallets and addresses. The ENS Game is a decentralized autonomous organization that runs on the ENS network and uses it to verify user identities.
Furthermore, all the users who join the game are considered members with voting rights. The Truth or Dare Game is a decentralized autonomous organization that allows users to play truth or dare using the Ethereum blockchain.
-Ethereum Name Service DAOs
An Ethereum Name Service DAO is a decentralized autonomous organization that runs on the Ethereum Name Service.
The Ethereum Name Service DAO is a decentralized autonomous organization that runs on the Ethereum Name Service. It uses the ENS to provide humans with readable addresses for Ethereum wallets. The ENS allows users to create their own subdomains.
For example, apple.eth, google.eth, and Facebook.eth are subdomains that users can create. Users who develop subdomains are considered members of the Ethereum Name Service DAO and have voting rights.
As explained before, there are different kinds of DAOs. Even though the principles of a decentralized autonomous organization remain the same, there are various ways to implement them and these DAOs governance model are important to the proper utilization of the opportunities in Decentralized Autonomous Organizations.