- Not all companies should become DAOs. Companies who have already reached a product market fit and built a user base are the ones that could benefit the most from this type of organization. DAOs can help them aligning benefits for stakeholders and give users more voice on their products.
- Main benefits of becoming a DAO:
- Increased innovation
- Reduced administrative overhead
- Increased community involvement
- These benefits are not automatic. It’s important to look at what worked and what didn’t for other organizations, fork and build on it instead of starting from scratch every time.
- It’s important to have a couple of key people who are willing to do leg work to reach agreement across the ecosystem and ensure alignment
- The chaos generated by the initial transition is necessary and it shouldn’t be avoided as it’s part of the every project’s learning process. Trying to start with rules that have been already set up would probably generate even more chaos, frictions and discussions.
- We need to learn from the past but we also need to discover new ways to organize ourselves. As long as we think at what we’re doing as an experiment and we iterate on the results we’ll probably end up in a better place.
- Key best practice: figure out who should hold decision making power and why.
How to transition from traditional company to DAO
- 00:00 - 09:05: Participants introductions
- 09:05 - : 12:10 Q: Why should companies become DAOs and what type of companies could benefit from such transition?
- 12:10 - 19:40 : Q: How did Shapeshift transition into a DAO?
- 20:17 - 23:09: Q (Shanzz): When you transitioned to a DAO did you decide about rules and regulations regarding hiring and firing? Who decides that when there’s a downturn?
- 25:07 - 27:48 : Q (Fintan): how do you select workstream leaders?
- 27:48 - 30:01 : Q (Ivan): You mentioned that innovation increased substantially, how did you manage to keep alignement across the teams and follow one north star?
- 30:01 - 31:43: Q (Fintan): If you had to go through the process again, would you do it in a different way according to what you learnt?