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How to Plan and Create a DAO | Complete DAO Making Guide

How to make a DAO

DAO Making Guide

Creating a new DAO is not so difficult. There are thousands of DAOs projects appearing in Web 3.0. Creating a successful DAO requires proper planning and management. The guide will help you create a DAO on strong foundations that can have a chance to succeed in the long term. To create a DAO, you need some rules that are written on a smart contract. Then you need some capital to launch the DAO. Once a DAO is launched on Blockchain, any amendments in rules require voting by members.

DAO (Decentralized autonomous organization) brings a group of people to operate without a central authority and allows them to self-govern with decisions based on voting. DAOs are the building blocks of Web 3.0.  DAOs are mostly focused on achieving a common goal and attracting people who are interested in achieving the same goals. There are various types of DAOs with different purposes and many DAOs are already experimenting with new things. For example, a DAO attempted to buy US constitution original copy.

The article will define the basic layout that will help you to plan and start a DAO.

How to Plan a DAO

Creating a DAO is somewhat similar to creating an NFT with some addition of extensive planning and common treasury. Starting a Successful DAO requires complete planning. Therefore, it is essential that the foundations of a DAO are kept with proper planning.

Planning a DAO requires defining goals of DAO, creating a DAO community, planning management of common treasury, deciding on governance mechanism and distribution of governance tokens and in the end selecting the platform and blockchain to build your DAO on.

Define Goals of DAO

The goals and objectives of the DAO are the first things that must be decided. By defining a clear goal, you are informing your potential DAO members of the intent with which the DAO is being created. For example:-

  • AssangeDAO – aims to work to free Julian Assange. It raised $54 million for the purpose.
  • PleasrDAO – to collect culturally significant artifacts.

Create a DAO community

Creating a community is the most important and difficult task to create a DAO. You need to decide the approximate number of members you want in your DAO. You can create a DAO community on the following platforms.

  • Discord
  • Telegram

Web 3.0 community is very supportive and necessary assistance can be sought from the web 3.0 community.

DAO common treasury

Shared treasury is one of the major features of a DAO. Once you are creating and planning a DAO, you have to plan how to accumulate treasury in the joint DAO account. There can be various methods to collect the amount into the treasury.

  • Community members can deposit money into the treasury as a fee for using the DAO community.
  • DAO can create difficult projects and earnings from projects can be deposited in the collective DAO treasury.

Governance in DAOs

DAOs operate on democratic voting. Every proposal is put to vote and community members decide by voting on the proposal. Voting is actually conducted on the blockchain. You can create discussions on various platforms before the proposal is actually put to vote. Usually, one token represents one vote.

The voting can be performed on the chain as well as off-chain and is dependent on the purpose of the DAO and your choice.

Distribution of governance tokens

Tokens represent the ownership in DAOs. There are two ways to distribute Governorship.

  • Fungible tokens
  • Non-fungible tokens

In the future DAOs will be able to leverage NFTs and Fungible tokens to distribute membership rights.

The tokens can either be distributed among the members as “drops” based on contributions and behaviors or they can be distributed as “rewards” for completing the tasks.

Some DAO’s allow buying of DAO tokens from crypto exchanges like Uniswap.

Select a platform to create a DAO | DAO making tools

After, you have selected the basic mechanisms how you want to operate your DAO on.

There are various platforms available to create a DAO. These platforms provide templates that you can choose to start your DAO easily and fast without much hassle. You can build your DAO on Aragon, colony or Juicebox.

Build a DAO on Aragon

Aragon offers a very robust web 3.0 platform where you can build your DAO. Aragon also provides a variety of plugins that can help you with finances, payroll, and other administrative stuff. Aragon also supports creating a custom smart contract and then integrating it with the tools provided by Aragon. In this manner, you can define your own functionality while utilizing the basic functionality provided by Aragon.

Build A DAO on Juicebox

Juicebox is a newer platform that you can use to build a DAO. In a juice box project, an NFT is used to represent ownership of that project and whoever owns this NFT can configure rules and payouts for the project. A lot of DAO are being built on Juicebox.

Other DAO building platforms

There are also other platforms that support building DAOs faster and more efficiently.

  • Colony advertise that you can build a DAO in 90 seconds on their platform.
  • Mirror is a newer platform with a nice UI for building DAOs.
  • DAOstack Alchemy support building DAOs for Ethereum and Gnois Chain.
plan a DAO

Select a Blockchain for DAO

While selecting a Blockchain for your project, you have to keep in mind the transaction fees. While Ethereum is becoming more  and more expensive day by day, various other blockchains offer low Gas fees like Solana and Gnois chain.

DAOs Future

There are many issues with DAOs that need to be solved especially many DAOs have proven to be scams or DAO ponzi schemes. However, in future, the largest Organizations in the world are going to adopt DAO operating mechanisms in one form or another. But to build a successful DAO, you must lay its foundation on strong foundations with a clear aim. DAOs have offered a new way to govern things and more and more people are adopting the new change.


How to avoid high gas fees of Ethereum for the DAO?

To avoid high gas fees, DAO can be deployed on Gnois chain or Solana blockchain which have significantly lower gas fees than Ethereum

What is the best platform for building a DAO?

Aragon is best if you are planning on integrating your own smart contract. Whereas juicebox and colony are better if you are planning to build a DAO on existing templates.

How to build a community for a DAO?

You can build the DAO community on Telegram or Discord.

How to plan a new DAO?

To plan a DAO, you need to define the purpose of DAO, the governance mechanism, the treasury control mechanism and the membership procedures. You must also decide the platform on which you are going to build your DAO and the blockchain on which you are going to deploy your DAO.

The Post is only the views of the author and should not be taken as legal or financial advice.


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