How to bake your own DAO at home — With just 5 ingredients! – Cointelegraph Magazine

Decentralized autonomous organizations come in all sizes and flavors. Some can seem sweet; others turn sour. It can be fun and interesting to create one that suits your needs and satisfies your hunger for something new.

We talk to the master chefs — Noam Hof of DeepDAO, Stru Delman of Aragon, and Fabien of Snapshot — who are mixing up new and exciting recipes for participatory goodness that you can bake at home.

A DAO is an online community that collectively controls a cryptocurrency fund to achieve a particular goal — whether buying a copy of the United States constitution or running a DeFi protocol — explains Delman from Aragon, an organization that “midwifes” DAOs and has helped usher almost 4,000 DAOs into existence.

“The idea is attempting to automate as many exchanges between people as possible and making it trustless so you don’t need to trust people,” Delman explains. “This makes it easier to collaborate with people that you meet online or to create a global team.”

You’ll need a good idea and a recipe for how to achieve success. Is it going to have the substance to make a fulfilling meal, or will it collapse like a badly done souffle?

You’ll also need a set of tools — and unique ingredients — and some collaborators to help you bring this banquet to the table for more people to enjoy.

Just five ingredients:

1. Establish a common goal, mission or objective.
2. Build a community of like-minded people using Discord or Telegram.
3. Create a shared fund to finance your goal.
4. Construct a governance framework.
5. Communicate to the group how the project is developing and disburse rewards as appropriate to contributors.

Let’s take a look at the different flavors of DAOs:

Protocol DAOs

These are DAOs that facilitate the running of protocols.

ENS DAO governs the Web3 protocol that allows users of the Ethereum Name Service (ENS) to create Ethereum names that are both human- and machine-readable. It’s the Web3 equivalent of a DNS service provider.

The Uniswap community uses voting for decision-making on the development and some operations of the Uniswap DEX. UNI tokenholders vote on Uniswap governance, protocol fee changes and UNI community treasury funds alongside other aspects.

Philanthropy DAOs

Philanthropy DAOs are also one of the rarer types of DAO right now. They focus on supporting socially beneficial initiatives that have a shared goal. As the sector matures, it is likely that more philanthropic DAOs will emerge.

Big Green DAO is a U.S.-based 501c3 nonprofit that specializes in giving grants to growing food projects, believing that DAOs simplify and empower nonprofits. It supports schools, families and communities to grow their own food.

Giveth is a DAO that facilitates sending donations to charitable projects. There are 1,578 projects listed on its website, which include food growing in Costa Rica and feeding the homeless in Canada. There are “trusted third parties” like JustGiving that already do this, but Giveth claims to be more open, transparent and decentralized without taking a large cut of the fees.

Collector DAOs

Many people in the crypto ecosystem are interested in collecting. Collector DAOs focus on accumulating funds so the group can purchase valuable NFTs and other digital collectibles. Some people call collector DAOs “NFT DAOs” if they are about collecting those specifically.

Flamingo, which was the first, specializes in collecting premium NFTs. For example, it paid over $700,000 to own the CryptoPunk #2890 NFT.

PleasrDAO is an art collecting club, where participants purchase what they believe is important art for the community. It describes itself as “a platform for collective experimentation at the nexus of community ownership, DeFi and digital art.”

Investment DAOs

Investment groups have been common for a long time, where a number of people get together to share investment knowledge and split the risk.

Investment DAOs work similarly to traditional investment funds. They operate the same model of using a pool of funds as in the traditional investment funds, although without any centralized controlling entity. In this type of DAO, tokenholders vote on decisions regarding projects for investing funds. Syndicate is an umbrella organization that has facilitated the creation and operation of investment clubs through decentralized mechanisms. It calls these “Web3 Investment Clubs,” where participants can create a group of up to 99 investors, pool their capital, and vote on where to invest those funds.

This morning over 20,000+ investment clubs have now been created on Syndicate 🚀

And this is just the beginning—our next phase is coming. Join us.

Start a club on Ethereum Mainnet or Polygon today:https://t.co/9Mma3mH2xh pic.twitter.com/JybBDsu7Du

— Syndicate ✺ (@SyndicateDAO) July 21, 2022

Grants DAOs

Similar to investment DAOs, there are also…