Decentralized Autonomous Organizations (DAOs) have become a novel solution for organizing and managing communities and corporations in a democratic and transparent way. DAOs are internet-native collectives that function autonomously by embedding governance and resource management guidelines onto the blockchain. This post will explore five popular tools that DAOs leverage, including SAFE, SNAPSHOT, GUILD, ARAGON, and TALLY.
SAFE is an asset management platform compatible with Ethereum and the EVM chains. This multi-signature wallet requires multiple approvals from software and hardware wallets by stakeholders before any transaction can be executed. The enhanced control that SAFE provides ensures that funds are managed responsibly, thereby preventing potential scandals reminiscent of past corporate mishaps.
SNAPSHOT serves as an off-chain voting platform that allows DAOs to participate in decentralized governance. It often serves as a “temperature check” for a proposal before it is submitted to a community for a vote on-chain. To create a “space” on Snapshot, DAOs are required to register a domain on the Ethereum Name Service (ENS). As such, SNAPSHOT provides a platform for DAOs to gauge the sentiment of their community on various proposals.
GUILD is an infrastructure for creating portable memberships and social structures across Web 2.0 and Web3 applications. DAOs can create token-gated communities and leverage Guild to define community roles based on the token holdings of a member. Popular integrations include Discord, Ethereum, Google Workspace, POAP, and Telegram. GUILD plays a significant role in the DAO ecosystem by providing the infrastructure for creating and managing community memberships.
ARAGON is a tech stack and suite of applications for the creation, deployment, and management of a DAO. The Aragon App is a “no code” platform for creating and managing a DAO without a developer. To date, over 6,000 DAOs are built on Aragon, including Web3 protocols such as Curve, Decentraland, and Lido. ARAGON has become a preferred tool for DAO creators due to its ease of use and wide range of functionalities.
TALLY provides governance infrastructure for on-chain DAOs through a plug-and-play API and UI. It is a voting and governance tool that allows members of a DAO to collaborate, submit votes for on-chain proposals, and delegate votes to a third party. Web3 protocols such as Aave, Compound, ENS, and Gitcoin are leveraging TALLY, making it a popular choice for DAO governance.
As the world of DAOs continues to evolve, these tools are playing a critical role in shaping the future of decentralized organizations.
Disclaimer: My Crypto Advisor is not a licensed financial advisor, registered investment adviser, investment adviser (as defined in the Investment Adviser Act of 1940, as amended), legal or tax advisor. This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice.