DAO Frameworks
Note: Data in this section last updated July 3rd, 2022
What is a DAO Framework?
From a technical standpoint, a DAO is essentially a collection of smart contracts built on a decentralized platform such as Ethereum. One smart contract may issue tokens, another would coordinate voting, a third could set treasury protocols, etc…
While anyone can write these smart contracts themselves (or “fork” the code of an existing DAO), many users find it more convenient to use pre-packaged solutions often called frameworks, launchers or “DAOs-as-a-Service” providers.
Frameworks are “no code” tools that allow users to create a DAO from scratch using a suite of pre-built smart contracts. Nearly anyone – regardless of their level of technical expertise – can log onto these platforms with their wallet, choose from a series of templates, fill out some pertinent information, and click a button to launch a DAO within minutes.
DAO Frameworks Provide Pre-Built Smart Contract Packages That Make It Easy to Launch a DAO
While each framework has its own offerings, most offer tools to help users:
Create Tokens: Launch and distribute tokens
Distribute authority: Delegate decision-making authority to certain individuals or groups
Coordinate Governance: Customize voting rights and parameters
Facilitate Communication: Provide forums to make proposals, discuss strategies and coordinate work
Manage Treasuries: Create multisig wallets, monitor treasury analytics and allocate funds
Streamline Payments: Provide payment tools that allow or compensation via bounties, tips, salaries or reputation-based schemes
Because every DAO has different needs – for instance, a social DAO will likely have a different voting protocol than an investment DAO – most frameworks provide users a variety of templates to choose from.
While frameworks provide a much simpler user experience, the obvious drawback is the fact is that they can be more difficult to customize to a DAO’s specific needs.
Notable frameworks include Aragon, DAOstack, DAOhaus, Colony and OpenLaw’s Tribute.
How does a DAO Framework Work?
To understand how frameworks operate, let’s take a look at Aragon – a “plug-and-play” tool that allows users to create a fully-functional DAO within minutes. The project was founded by Luis Iván Cuende and Jorge Izquierdo in 2016.
DAOs can choose from several pre-made templates that offer varying governance frameworks, token configurations, dispute-resolution models and voting options. Examples of templates provided by Aragon include the “Company” template (which uses token-weighted voting), the “Membership” template (which uses a one-member-one-vote governance) and the “Reputation” template (which uses reputation-based voting).
Aragon Users Can Leverage Pre-Made Templates to Launch a DAO Within Minutes
Aragon’s goal is to become more than just a “launchpad” for DAOs – it ultimately aspires to be a one-stop-shop for all needs relating to decentralized management. As such, the Aragon Network is composed of four main components: Aragon Client, Aragon Court, Aragon Voice and Aragon Govern.
Aragon Client: A plug-and-play solution that allows users to create a fully functional DAO within minutes. Users connect their wallet to Aragon, select a governance template, tweak the voting configurations, enter key token information, select the address of the recipients and then launch the DAO
Aragon Court: Handles subjective disputes that can’t be resolved by code. Aragon Court is composed of human jurors who help decide issues. Jurors are required to stake a token known as ANJ to participate and they earn fees if they help successfully adjudicate a resolution
Aragon Voice: The platform’s in-house proposal and voting system. Like Snapshot, the tool provides “gasless” voting and is verifiable on IFPS
Aragon Govern: A framework that allows for optimistic or “lazy” governance. In an optimistic governance scheme, anyone can make a proposal (e.g. pay $10 for a picture to use on the website) and it automatically passes if not challenged within a certain number of days. This is ideal for large DAOs that don’t want or need to debate and vote on every operational decision
These solutions are designed to work together synergistically. The platform compares this functionality to the current structure of the US government: 1) Voice is the legislative branch, where token holders make and vote on proposals, 2) Govern is the executive branch, carrying out those decisions and 3) Court is the judicial branch, providing dispute resolution.
The project has achieved impressive traction to date. It is available on both Ethereum and Polygon and is used by over 1,900 DAOs representing over $4 billion in value. Notable users include Aave, Curve, and Decentraland.
Unlike several of the other tools previously discussed, Aragon is a DAO itself and is governed by its native ANT token.
What are the Popular DAO Frameworks?
In addition to Aragon, some of the most popular frameworks include DAOHaus, DAOstack, Colony, OpenLaw’s Tribute and Moloch.
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