Hacker News Reader

Comment by marmada | Hacker News Reader

Can someone w/ more crypto experience explain how a DAO actualizes its decisions?

For example: Here, there was a vote. Now what? Will Blender setup a wallet that can accept ETH? Will the DAO then vote on a transaction that sends money from the DAO to Blender's ETH wallet??

View on HN

I'm not sure about Decentraland specifically, but typically there will be a subset of the DAO members who actually control the DAO treasury in a "multisig wallet". Say they have 10 signatories, they might have a requirement that 8 of the 10 signatories approve a transaction to either send ETH to Blender, or do the necessary swaps to give Blender USD. The signatories have committed to execute the will of the DAO.

Voting happens "off chain" using a tool called Snapshot (https://snapshot.org/#/snapshot.dcl.eth). If people hold some Decentraland tokens/assets, they can vote, and their vote is weighted in proportion to their holdings. This isn't without its problems: https://vitalik.ca/general/2021/08/16/voting3.html

If you want to learn more, I wrote a blog post on DAO tooling 101: https://blog.juicebox.money/dao-tooling-101/

That's pretty funny, that's basically identical to how standard corporations work, except instead of "signatories" you have "corporate officers" and instead of "off chain voting" you have (very thoroughly-regulated!) "shareholder proxy statements".

Well that's the point actually. It is a lot like shareholder/board of directors voting. Except that the DAO requires virtually no bureaucracy to get up and running. So if, say, you and your local community wanted to start an organization to fund some common-goods project you can do it in a few minutes, provided you have people who are onboard with the vision and have a little money to put in. After that all voting and movement of funds is transparent. The code replaces corporate structure. There are unsolved problems like vote-buying and all that, but then other mechanisms would kick like "rage-quitting" (a term used officially by some DAO systems) by which DAOs can dissolve and funds be withdrawn by contributors. Plenty of research projects on the table, but benefits are already being reaped, as in this Blender case.

The code doesn't really replace the corporate structure, as the structure is the same. The code replaces the ledger, I suppose, but that's about it.

The most common way it works is that a snapshot of all holders of the governance token is taken at a certain point in time and a proposal is made, which all holders in the snapshot are able to vote on by signing their response.

Blender already accepts donations on Ethereum mainnet at 0x9De8991C56F622175274fb358f981AF6F903a799. The proposal which passed was to send a "one-time" donation to Blender, but it's not clear if they're going to be sending MANA (which is the currency in use on Decentraland) or if they're going to send a USD equivalent stablecoin. Unless the Blender devs are willing to be paid in MANA, it will need to be converted to fiat at some point.

Reply on news.ycombinator.com