DAOs

Decentralised Autonomous Organisations

Decentralised Autonomous Organisations (DAOs) are a relatively novel concept in governance, leveraging blockchain technology to create transparent, community-driven decision-making systems. In essence, a DAO is an organisation where control is distributed among its members, who hold tokens that grant them voting rights on proposals. These proposals can range from allocating funds and upgrading protocols to setting strategic direction and electing community leaders. The benefits and challenges of DAOs as an organisation type have been mentioned here.

Existing DAOs: A Glimpse into Decentralised Governance

Numerous DAOs have emerged across the blockchain landscape, each with unique governance structures and decision-making processes. Let's take a look at a few prominent examples:

• Uniswap, Sushiswap, Curve & Pancakeswap: These DAOs govern the respective protocols - a decentralised exchange (DEX) for swapping tokens on the Ethereum blockchain (and numerous other EVM chains). Governance decisions may include adding new token pairs, adjusting trading fees, or implementing protocol upgrades.

• Arbitrum, ZkSync, Manta, Optimism, Blast, Scroll & Starknet: These 7 DAOs oversee the respective rollup networks - layer 2 scaling solution for Ethereum. While there are differences among these rollups (e.g., Optimistic vs. Zero-Knowledge, EVM-compatible vs. own virtual machine), the governance purposes are similar: decisions may involve adding new features, managing the network's tokenomics, or assigning grants.

• LayerZero & Wormhole: These DAOs govern omnichain interoperability protocols (comparable or equal to bridges). The decisions made may concern a fee switch or more general protcol enhancements.

• Aave & Compound: These DAOs govern the corresponding protocols - decentralised lending and borrowing platforms. Governance decisions may involve adding new assets for lending and borrowing, adjusting interest rates, or managing the protocol's risk parameters.

• ENS: The ENS DAO governs the Ethereum Name Service (ENS), a decentralised domain name system. Decisions may include setting pricing for domain names, managing the ENS treasury, or resolving disputes over domain ownership.

• Gitcoin: The Gitcoin DAO governs the Gitcoin platform, a community-driven funding mechanism for open-source projects. Decisions may involve selecting projects for funding rounds, setting funding parameters, or defining the overall direction of the platform.

• Gnosis: The Gnosis DAO governs various projects within the Gnosis ecosystem, including the Gnosis Safe multi-signature wallet and the Gnosis Chain. Decisions may involve managing the development and direction of these projects, allocating resources, or making strategic partnerships.

These examples demonstrate the diversity of DAOs and the wide range of governance decisions they make. By participating in these DAOs, token holders have a direct say in shaping the future of the decentralised web.