SUB - Subtraction

Supports:

• Control as a Liability

Context:

In the evolving landscape of DAOs, the distribution of power and authority is a critical factor that dictates not only the functionality but also the appeal and longevity of the organization. Effective DAOs need to resist centralization tendencies and ensure that power does not become overly concentrated in the hands of a few, hindering innovation and community involvement.

Problem:

As DAOs mature, they often face the challenge of centralizing authority either through the accumulation of decision-making power or through bureaucratic growth. This centralization can lead to inefficiencies, reduce community engagement, and ultimately undermine the principles of decentralization that underpin the DAO’s foundational ethos.

Forces:

• Centralization vs. Decentralization: The balance between efficient governance and decentralized control.
• Scalability: The ability to maintain decentralized principles while growing in size and complexity.
• Community Trust and Engagement: Ensuring that the community remains actively involved and trusting in the DAO’s processes.

Solution:

Adopt a “Subtraction” approach, where the DAO actively seeks to decentralize power by distributing authority and reducing unnecessary governance layers. By simplifying decision-making processes and deploying mechanisms that ensure power is not concentrated, a DAO can maintain agility and continue to foster a collaborative and open environment.

Real-world applications of Subtraction can be seen in organizational strategies that focus on:

• Decentralized Governance Models: Utilizing tools like voting protocols that weight contributions based on varying factors rather than concentrating decisions among a few holders or nodes.
• Automated Smart Contracts: Using automated systems to handle routine decisions, lowering the need for constant human oversight and reducing centralized control.
• Encouraging Community Initiatives: Lower barriers for community members to propose projects and changes, extending beyond just financial contributions to governance participation.

Notably, entities like the Ethereum Foundation exemplify Subtraction by deliberately reducing their footprint in the Ethereum ecosystem’s governance to encourage decentralized development and community-led initiatives.

Therefore:

Embrace strategies that continuously evaluate and remove centralized control mechanisms within the DAO. This proactive subtraction will enhance community trust, engagement, and ensure the long-term decentralization and resilience of the DAO.