The Pomp Podcast
#883 What The Hell Is A DAO?! w/ Alexander Taub
- DAO definition and structure: A DAO is a decentralized organization where members collectively pool funds, make proposals, vote on decisions, and execute outcomes—analogous to a group of friends pooling money and voting on how to use it.
- Community evolution framework: Taub outlines three community generations: 1.0 (geography-based, IRL), 2.0 (interest-based, online), and 3.0 (ownership-based, transparent, Web3-enabled with voting rights and profit transparency).
- Legal compliance and entity wrapping: DAOs are not currently recognized by US law; they function as general partnerships unless wrapped in LLCs, UNAs (unregistered nonprofit associations), or 501c3 foundations to limit liability and provide structure.
- Upstream's infrastructure solution: Upstream provides a no-code, full-stack DAO platform addressing fragmentation across governance tools (Aragon, Snapshot, Discord, Collabland, Juicebox) with features like dynamic delegation and mobile voting.
- Dynamic delegation feature: Allows members to fractionally delegate voting power—keeping certain votes while delegating others to trusted parties based on proposal type or funding threshold—improving governance speed and participation.
- Governance token models: Different approaches exist; ApeCoin distributes widely to create liquidity, while projects like Illuminati NFT tie DAO tokens 1:1 to NFT ownership to ensure only community members vote on treasury allocation.