Step 1: Choose your potion
Before you can get started, you need to define the basic parameters of your DAO setup. Here are some questions that you will need to answer to complete your setup.
- Which organizations or individuals are contributing funds to the DAO?
- At what frequency will these funds come in? Will it be a regular frequency (i.e. a fixed amount per week or month), or do funds arrive ad hoc? The more visibility you have on the rhythm that funds will come in with, the better, so that DAO members can plan their proposals around the available funds.
There are different parameters that DAOs can use to distribute decision making power. One such parameter is reputation (another would be tokens), which we are using to illustrate this step.
- How will reputation be distributed at the creation of the DAO?
- Who will receive reputation?
- Will each person receive the same amount of reputation? If not, what are the different amounts of distributed reputation based on?
You will find that especially on questions around decision-making power there may be disagreement in your team, so make sure to plan enough time for this discussion. Once you have clarified these aspects, you are ready to begin onboarding and start your funding process.