DAO Governance

Participate in decentralized organizations

⏱️ 20 min

DAO Governance

DAOs (Decentralized Autonomous Organizations) are internet-native organizations governed by token holders.

How DAOs Work

1. Members hold governance tokens

2. Anyone can submit proposals

3. Token holders vote

4. Smart contracts execute approved proposals

Types of DAOs

Protocol DAOs: Govern DeFi protocols (Uniswap, Aave)

Investment DAOs: Pool funds for investments

Social DAOs: Communities with shared goals

Collector DAOs: Acquire assets collectively

Service DAOs: Decentralized work coordination

Governance Mechanisms

Token Voting: 1 token = 1 vote

Quadratic Voting: Cost increases exponentially

Conviction Voting: Time-weighted preferences

Delegation: Give voting power to representatives

Participating

1. Acquire governance tokens

2. Join Discord/forum to follow discussions

3. Read proposals before voting

4. Delegate if you can't keep up

5. Submit your own proposals

Challenges

- Voter apathy (low participation)

- Plutocracy (rich have more power)

- Coordination costs

- Regulatory uncertainty

Getting Started

- Join a DAO you use (Uniswap, ENS, Gitcoin)

- Start by observing governance forums

- Vote on proposals you understand

- Gradually increase involvement