5 Types of DAO Tools You Should Know About

DAOs, decentralized autonomous organizations, are community-led organizations with no central authority. They operate equally to grassroots actions, the place a bunch of individuals with a shared mission come collectively. So far as the targets are involved, the forms of DAOs range significantly. There are media DAOs like Bankless DAO, collector DAOs like FlamingoDAO, and protocol DAOs like MakerDAO, to call just a few. 

Nonetheless, no matter their sorts, DAOs should carry out sure operations to run their organizations. To this finish, they use a set of purposes and software program, which is named DAO tooling. 

A lot of the operations are widespread amongst DAOs, and so are the forms of instruments they use. That’s why, on this article, we give a glimpse into typical DAO operations and the DAO tooling panorama. 

Standard forms of DAO instruments

#1 Governance and voting

As their names counsel, DAOs should govern autonomously and in a decentralized means. Due to this fact decision-making is achieved by encoding guidelines in good contracts, and proposals should endure neighborhood voting. 

DAOs can use on-chain or off-chain voting processes, whereas some DAOs desire a mix of the 2. Off-chain votes – also referred to as signalling votes – point out voters’ will with out executing an motion. Snapshot is the most well-liked off-chain voting instrument. The platform provides numerous methods for token-based voting, together with NFTs. 

On-chain governance instruments comparable to Tally and Sybil are additionally widespread. Tally permits DAOs to create proposals, vote, or delegate voting energy. Sybil is a instrument to find accounts for delegating voting rights. 

#2 Treasury administration

DAOs want clear processes for his or her asset administration. Usually, all belongings of a DAO are saved in a single crypto pockets generally known as the treasury. Due to this fact, DAOs require a number of folks to approve a transaction to forestall fraudulent actions that may be brought on by the signature of 1 individual. This is named a multisig transaction. Quite a few instruments assist DAOs allow multisig, comparable to Safe and Multis. 

One other in style DAO asset administration instrument is the Juicebox protocol, a programmable treasury DAOs can use to configure token minting and crowdfunding. 

#3 Neighborhood administration

Discord, Telegram, and Twitter are the go-to instruments for connecting with neighborhood members, however DAOs additionally leverage different instruments to optimize totally different elements of neighborhood administration. 

For example, they will create and handle communities utilizing gm.xyz and onboard customers with Catapult. The know-your-customer (KYC) course of offered by Fractal permits DAOs to make sure their members are people and never bots, in addition to guarantee truthful participation in airdrops and voting techniques. 

#4 Compensation Distribution

Some DAO instruments are explicitly designed to reward members for his or her contributions. Essentially the most well-known amongst these is Coordinape which helps DAOs pretty distribute compensation, let neighborhood members reward one another, and outline inner salaries. 

One other in style compensation instrument is Superfluid. DAOs use it to automize recurring and real-time funds. One other protocol for streaming funds is Sablier, whereas Utopia is a payroll administration instrument for DAOs, and Roll is a instrument for bulk token distribution. 

DAOs may also submit bounties to reward members. Dework, Layer3, Kleoverse, and Gitcoin are some platforms to announce bounties. 

# 5 Entry management

DAOs with token-gated communities can use Guild.xyz to outline neighborhood roles based mostly on token holdings, handle whitelists, distribute POAPs, and create guess passes for members with no tokens. Collab.land permits the verification of belongings on the Ethereum blockchain. DAOs combine it into their official Discord and Telegram channels to confirm possession and assign entry rights. The Grape protocol is one other instrument to grant entry rights based mostly on pockets balances; it’s designed for the Solana community. 

The underside line: different forms of DAO tooling

Whereas these instruments signify the means to run most DAO operations, quite a few others assist fulfill different features. Among the most essential components of DAO tooling are additionally developer instruments like Alchemy and Radicle and tax administration instruments like Accointing.