DAO The Way Part 7

By xuanling11 | Crypto Learning | 12 Feb 2022

Let’s talk about the framework of DAO particularly in the Constitution of DAO. Do we need a governing body for DAOs, what standard does a DAO need to comply to or do we not even need a standard for DAOs?



Three rules that DAO can follow and enforce to make its community operate more sustainable and resilient.


Before the Constitution

From Greek Mythology where rights were born to have, to Roman Empires where rights were conquered by military power to become monarchy to Medieval the church controlled the power, there was a long discussion on what the government should do for their citizens. Until John Locke “believed, contrary to claims that God had “made all people naturally subject to a monarch”, that people are “by nature free.”(Tuckness)”, the idea of Constitutional right to every human being was flourishing.



Before the Constitution of the United States, there was a period of Federalism. The idea was that each State sent its representatives to join the meeting to discuss national issues. It failed miserably because no one wanted to waste time and travel a long distance to meet without any incentives received. 




The idea of the Constitution is to create an agreement for every citizen to protect their basic rights through a government as the organization to follow and enforce such rules. The government cannot be either too powerful to crush their own citizens (like the British Empire at the time) or too weak that citizens could easily overthrow their own government (Like Fresh Revolution at the time). Then, the structure of the balance of power was born that could restrict the power of government by itself.


Direct Democracy to Open Democracy

Socrates is credited as a founder of Western philosophy yet was sentenced to death through direct democracy. Yet, true democracy has never existed in human history. Because if each person has to go through a voting process, nothing can be done. In contrast to open democracy where policies are submitted through a crowdsourced method and representatives work on policies that crowdfunding through rather than lobbying through the Congress by corporations.    


Rules to DAO

Ideas of political progress can apply to DAO. There are no set rules of communities in DAO and everyone can make up their own. However, the rule can have a spectrum between corporations-like that restrict DAO to operate under sets of rules few to create and to laissez-faire which community took over the control. 


I then proposed three rules to build DAO:


  • DAO will treat community members fairly
  • Community members should obey rules DAO voted and approved
  • None will proceed with activities to jeopardize DAO in anyway


The first rule is to help DAO become a sustainable community that members by no means can be exploited or treated as a dispensable resource. 


The second rule is to promote an environment that the community collective works through and becomes an asset to the community to maintain and to protect.


The third rule is to prevent abusing power to take advantage of their community or their members.


Of course, by not any means that such rules are strictly enforced and to follow but there are some extenuating circumstances such rules are to implement and help community members to grow and support each other.


In conclusion

As DAO progresses and becomes a more complicated organization, rules are likely to be implemented and enforced to make sure community members have an environment that supports their work and experience.


Stay tuned for the next article!

Photo by Mick Haupt on Unsplash
Note: the post was shared on multiple platforms here.

You can refer my previous article lists here
Digital Commodities- the Unlimited Resources of Commodities Has Born
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Bitcoin ATM Adoption and Its Potential Security Vulnerabilities
When Corporations Are Running By Everyone
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Coinbase At Huge Reputation Crisis
CBDCs' Flaw Design
Regulations Start Hitting Crypto Exchanges
From Bitcoin Standard To Zero-Knowledge Proofs - Decentralization 2.0
Shiba Hits 1 Million Users (Army) Milestone: What is Next?
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2022 Prediction #1: L1 Scalability
2022 Prediction #2: L2 Bridges
2022 Prediction #3: Zero-Knowledge Proofs or ZKPs
2022 Prediction #4: Regulated Defi On-Chain KYC
2022 Prediction #5: Institutional Crypto Adoption
2022 Prediction #6: Defi Insurance
2022 Prediction #7: NFTs-Based Communities - DAO 1.5
2022 Prediction #8: Metaverse and NFTs
2022 Prediction #9: Web2 Companies’ FOMO
2022 Prediction #10: Time for DAO 2.0
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DAO The Way Part 2
Who Is The Winner of The Crypto Adoption
Phishing Attacks
DAO The Way Part 3
What You May Expect NFTs After 6 Months and Beyond
DAO The Way Part 4
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DAO The Way Part 5
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DAO The Way Part 6
Learn How To Defi Part 1
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