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SDM - Scalable Decision-Making
Supports:
Context:
In DAOs, the process by which decisions are made can significantly influence their agility, effectiveness, and the satisfaction of their members. As DAOs scale, the decision-making process must adapt to accommodate a larger number of stakeholders and an increased complexity in the decisions to be made.
Problem:
Standard centralized decision-making processes do not scale well in decentralized environments that require rapid, inclusive, and effective resolutions. This often results in bottlenecks, decreased member engagement, and suboptimal decision outcomes.
Forces:
- Complexity vs. Scalability: As the size of the DAO and the complexity of its operations increase, the existing decision-making processes may become cumbersome and slow.
- Autonomy vs. Control: Ensuring that decision-making processes respect member autonomy while maintaining sufficient control and direction at the DAO level.
- Inclusivity vs. Efficiency: Balancing the need for broad member participation in governance with the need for swift, decisive action when necessary.
Solution:
Implement a tiered decision-making framework where different types of decisions are handled at different levels or by different mechanisms, according to their nature and impact. For routine, day-to-day decisions, automated systems or predefined protocols can be used, reducing the cognitive load on members and speeding up the process. For more complex and impactful decisions, a more collaborative approach is adopted, involving broader consultations or consensus processes.
This framework might include:
- Automated Decision Rules: For operational decisions that can be standardized and automated.
- Delegated Decision Groups: Small, expert committees or working groups make decisions within defined scopes, subject to oversight and veto by a broader group.
- Full Member Votes: Used for major decisions such as amendments to the DAO’s constitution, large financial expenditures, or changes in strategic direction.
Technological supports such as smart contracts and blockchain-based voting systems can enforce and facilitate this scalable decision-making framework, ensuring transparency and adherence to the governance rules set forth by the DAO.
Therefore:
Create a flexible decision-making structure that can adapt to the growing and evolving needs of the DAO, utilizing technology to enforce governance rules, simplify processes, and maintain member engagement and trust.
Supported By:
