DAO-NET is a collective of DAOs, a DAO composed of DAOs. DAO-NET will operate as the legal interface to legacy government for the DAO collective by providing a collective Tax Pool framework to pay taxes, fees and fines to legacy governments for member DAOs. To facilitate this function DAO-NET will be founded as a Limited Liability Company under the Wyoming DAO LLC law.
The target audience is for any individual or group looking to start a legally compliant algorithmic DAO for the purposes of funding projects, without having to delve into the legal and accounting intricacies themselves. An added benefit will be a network of DAOs, with which to collaborate on mutually beneficial projects and to grow DAO membership.
DAO-NET is designed for modular growth and the current methodology for associating DAO membership uses encrypted Shelley addresses however migrating to encrypted Atala Prism DIDs for DAO membership will allow users to better restrict information shared with specific DAOs while allowing DAOs more specific membership criteria. In this scenario, DAO-NET would be the credential issuer while DAOs within DAO-NET would be the verifiers.
The overall impact will be a framework for rapidly launching legally compliant algorithmic DAOs, in an exponential growth of interoperable functionality, that will facilitate the pursuit of virtually any collective objective.
This proposal explicitly addresses the Self-Governance of Emergent Communities aspect of the challenge, including the DAO Governance in Practice sub-challenge to create a Wyoming DAO LLC.
The pilot and initial minimal viable product will be launched in 2022 aligning with the relevant metric.
Each algorithmic DAO is a repeatable smart contract pattern which aligns with the discovery of repeatable patterns in use-cases metric therefore this metric becomes the number of DAOs in DAO-NET.
By default the number of issuers would be just DAO-NET however it is possible that DAOs within DAO-NET could be issuers of their own for members meeting specific criteria for instance a DAO dedicated to producing a list of verified unique members to provide Sybil attack protection.
The number of holders is equal to the number of DAO-NET members while the number of verifiers is equal to the number of DAOs.
The number of verifications performed on credentials in production is not a readily available metric however this DAO-NET project will include tracking this metric on an ongoing basis.
The relevant metrics of the number of DAOs, members, and verifications will be collected and displayed on a publicly available dashboard that is updated on a minimum of a daily basis.
The main challenge for this project is that the legal, accounting and smart contract auditing costs may be under budgeted as the potential hurdles and associated costs are unknown at this stage.
The DAO-NET suite of proposals has several strategies to address potential cost risks:
- By having multiple modular projects in each funding round there is a required overlap of funding to make each project functional on a stand-alone basis however as more projects are funded then the overlap can be used to cover potential shortfalls
- DAO-NET intends to launch a Mission Driven Stake Pool in May to help fund its operations
- Longer term solutions include a merchandising campaign (see the Merchandise Store project) and the DAO-NET: Development Funder project as additional revenue streams.