How to Create and Launch a DAO: 5 Key Steps

Decentralized Autonomous Organization ( DAO ) is rapidly becoming a hot topic in the crypto space. This new organizational form offers limitless possibilities for resource allocation and the formation of digital communities on a global scale. Whatever your goals may be, as long as you have a clear mission and appropriate framework, you can launch a DAO. Here are the 5 key steps to creating a DAO:

1. Establish the Mission

This is the most important first step. Clearly define the goals and purpose of the DAO, providing members with a clear direction for their efforts. The mission can be anything from funding public welfare projects, collecting digital artworks, to creating social clubs or building open protocols. What is important is to have a clear vision.

2. Establish Community

The community is the core of the DAO. The scale and openness of the community are determined by the mission. Use platforms like Discord and Telegram to gather like-minded people. Consider using tools like Collab Land to create Web3 experiences. Establish an on-chain address library to prepare for future ownership allocation.

3. Establishing a Treasury

The shared treasury is a key feature of the DAO. Depending on the type of DAO, funds can be raised through protocol fees, NFT sales, project revenue, or investments. The treasury provides operational funds for the DAO to achieve its mission. Tools such as multi-signature wallets can be used to manage the treasury.

4. Establishing a Governance Framework

Governance is at the core of DAO operations. It can be conducted on-chain or off-chain, usually involving community discussions, proposals, and voting. Consider establishing working groups to improve efficiency. Choose suitable governance tools, such as Snapshot for token voting and Discourse for discussions.

5. Allocation of Ownership

Distributing ownership and governance of the DAO through ERC20 tokens or NFTs. ERC20 is more suitable for internal incentives, while NFTs make it easier to sell memberships. Tools like Coinvise or Mirror can be used to issue tokens. Consider legal compliance issues.

In summary, launching a minimum viable DAO requires: a clear mission, building a community, setting up a shared treasury, constructing a governance framework, and allocating ownership. The rest depends on how you and the community can exercise creativity. DAOs provide new possibilities for human collaboration, and I believe more innovations will emerge in the future.