The concept of a DAO is to allow multiple parties to come together (usually by providing funds and assets to the DAO) in a trustless manner to achieve democratically agreed upon goals.
Currently, as of February 2022, most DAOs simply act as a combination of a “board” + treasury for a decentralized platform/protocol: there is a smart contract that holds the relevant assets/funds of the protocol, and there are other tools that are utilized to provide communication, discussions, submission of proposals and voting on proposals by DAO participants.
The ultimate goal of a DAO is to represent a completely autonomous and trustless “company” in the traditional sense, where traditional companies have an equity structure that requires a lot of traditional infrastructures to uphold — such as legal rights — a DAO’s ultimate goal is to allow seamless and easy execution of participants/owners without having to rely on traditional infrastructure. Anyone can easily participate in a DAO by (usually) purchasing a protocol’s token and staking it, and most DAOs are democratic with 1 token for 1 voting right on proposals.
Why DOMANI DAO
The benefits of a DAO can be broken down into two main categories:
No single person or entity has full control over a DAO. As such, DAOs do not have a central point of failure. This eliminates uncertainty and increases participation within the community.
2. Community based
Unlike legacy organizations, a DAO has a flat structure with little to no management structure in place. Decision-making power in the organization is given to each token-holder. This power is proportional to the tokens held by a member, yet it does not grant them any further rights or privileges.
Specifically for DOMANI, we are interested in creating sponsored indexes and funds within our product offering, meaning the creation of a DAO is necessary as the organization backing the creation of these flagship indexes and funds.
In summary, the creation of the DOMANI DAO will allow for further decentralization and more community-based initiatives. Giving more power to those that help build the community and encouraging more interaction with the protocol.
DOMANI DAO governance happens in three phases:
- Discord. New ideas, changes, and projects will be proposed in the relevant Discord channels. At this stage, conversation can happen to flesh things out and establish soft consensus.
- Forum. If consensus is reached, a formal proposal can be posted to the DOMANI Forum. The community can then engage in more concrete discussions around the specifics of the proposal, and any necessary changes can be made.
- Snapshot. Once a proposal has been adequately discussed on the Forum, we will hold a community-wide off-chain vote on Snapshot to determine whether or not the proposal will go into effect.
Any community member can suggest an idea on Discord and begin this process. To bootstrap, the initial governance process, only whitelisted members will be able to create proposals on Snapshot.
Governance is an ongoing learning process for the entire community, and we will continue to hear each other’s feedback and improve these practices as much as possible.
General DAO Phases and Processes
DOMANI DAO treasury can be managed via Snapshot and Gnosis. All treasury tokens will be transferred using DOMANI DAO Snapshot proposals, with future ambitions to move to an on-chain DAO at the choosing of DEXTF holders. Treasury tokens are used at the discretion of the community and may be allocated to any and all programs that add value to the DOMANI DAO ecosystem.
How to Join DOMANI DAO
The creation of the DOMANI DAO will be an iterative process, we are first planning to release a token gated forum where the community can discuss internal matters. Specific details about how to join the DAO will be released in the following weeks. We will also decide further down the line which chain we will deploy the DAO on, stay tuned by following us on Twitter, Telegram and Discord for the latest updates on the creation of DOMANI DAO.