DAO The Way Part 8

By xuanling11 | Crypto Learning | 14 Feb 2022

In part 8, let’s discuss Barriers to Entry in DAO. 



I show 4 different categories of DAOs and each DAO with their level of Barriers of Entry.


Why Barriers to Entry


To design your DAO, you have to think about what goal your DAO wants to accomplish. There are 4 general categories to reach the goal through building a DAO: product, project, service, and mission. From these 4 general categories, one can decide barriers of entry to tailor down into DAOs. 



You can build a DAO for product purposes. It does not limit to physical products but to digital products like NFTs. The community you built is to serve products and expand its potential future. For example, NFTs can expand into Metaverse and become part of GameFi in the later stage.



Building a project-oriented DAO can be another purpose to serve your community. The difference between product-oriented and project-oriented is product-oriented focuses on the product outcome but project-oriented focuses on continuous improvement. It means a product-oriented community may dissolve when a product is no longer needed, in contrast to a project-oriented community that community can create another project to work on.



The third type is a service-oriented DAO. The community works together to provide a service and to resolve specific problems. Such service is not limited to existing products, projects but a broader sense of consulting purpose. It can be as small as helping other DAOs translate their materials to build websites for them. Or it can provide financial service to DAOs.



The fourth type is a mission-oriented DAO. The community has a mission that every member works together to achieve. It is a long-term goal that constantly drives the community to work together to accomplish. It may include product building, project building, service providing, or any other type that the mission wants to accomplish.


Barriers of Entry

Let’s go back to discussing Barriers of Entry. 


For mission-oriented DAO, it has the lowest Barriers of Entry simply because you need more people to work toward the mission. It opens to everyone who wants to join to accomplish the mission. However, the more people join, the less likely everyone will stay and contribute.


For service-oriented DAO, it has the second-lowest Barriers of Entry because the community needs people to provide enough services. It does not necessarily have the skill to work on rather than learn from the processes and tasks.


For project-oriented DAO, it has the third-lowest Barriers of Entry because the community starts looking for specialists that can contribute immediately and help to grow. They look for solutions and contributions rather than having enough resources to train someone to be capable of doing the project.


For product-oriented DAO, it has the highest Barriers of Entry because the community needs loyalty from their members through monetary contributions or other potential artificial barriers to join such as a membership. They look for loyalty. Eventually, they want to have a community with supporting members.

In conclusion

It does not mean that categories and Barriers of Entry are exhausted here as the DAO is still evolving.

Photo by Matt Artz 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
Universal Income in Crypto Way
DeFi 1.0 is Officially Dead - Welcome to DeFi 2.0
NFT Has a New Purpose
How Many Ads Are Too Much - Floki Inu Ads Got Backfire
Metaverse - Second Life Era
Bitcoin ATM Adoption and Its Potential Security Vulnerabilities
When Corporations Are Running By Everyone
The Fundamental Value Is Irrelevant
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?
How To Avoid Crypto Scammers
Crypto Philanthropy
Shiba Game - When Meme Meets Metaverse
Twitter CEO Steps Down - A Full-Time Bitcoiner
Change of Macroeconomy Landscape
CBDC Is Losing The Game
Crypto AWS
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El Salvador's Bitcoin
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Brief History of Ethereum and How Ethereum 2.0 May Over Promise
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Defi Enters To Crypto Bond Phase
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Global Regulations Are Coming Or Can They
IMF Did Have A Plan to Run Global Regulations
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A New Malware Will Steal From Telegram
Smart Money Is Out, Institutional Money Is In
Wait, Web3 or Web 3.0 or web3
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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
Craig vs People
Polygon Enters ZKPs - Plonky2
Crypto.com Backfire - When Centralized Crypto Service Panic
Coinbase NFT Marketplace
Crypto Paycheck
Coinbase Customer Service Alive
When Meta Patented Metaverse
When You Want Someone Forget About What You Did, Just Change You Name
When YouTube Enters Into NFTs
Facebook Just Did the Rug Pull
Bridging Between Web2 to Web3 Through NFTs
DAO The Way Part 1
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
Licensed NFT vs. IP Law
Wormhole Hack - It May Not Be a Bad Thing
Preventing Rug Pulls
DAO The Way Part 5
Lessons Learned From Wonderland DAO
DAO The Way Part 6
Learn How To Defi Part 1
DAO The Way Part 7
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