The metaDAO DAO is building a protocol for the creation and operation of metaDAOs.
metaDAOs are used by DAOs to create DAOs that are comprised of DAOs. There are a number of use cases including
- Coallition building
- Enabling metagoverance
- Diversifying a treasury
metaDAOs can also be used in conjunction with fundraising projects to allow a group of DAOs to package themselves as somewhat of an index - thereby increasing fundraising opportunities.
Please join us and contribute your use cases, questions, and degen DAO leadership:
https://discord.gg/2atZxZhRSK
metaDAO technologies include the MTOTM project and the metaDAO user interface.
MTOTM stands for Many to One to Many atomic swap. The underlying smart contracts enable many token owners to swap tokens at a fixed ratio in return for an equal share of governance tokens in a newly created metaDAO.
The following animation shows an example where, on the right side, independent contributors obtain metaDAO tokens in return for eth. Often a metaDAO will be established without a fundraising component. In the case the swaps and the creation of the metaDAO does not include contributions.
As mentioned above, there are at least a few emergent use cases for metaDAOs.
DAOs themselves can be composable elements much as protocols themselves can be. We already see the emergent of subDAOs. metaDAOs are conceptually similar - though in the opposite direction.
One motivation for DAOs joining a metaDAO is to create a coalition of DAOs that have a shared purpose. For example, coallitions that share common approaches to addressing climate change, and yet are each based in a different ecosystem, may choose to create a metaDAO so that they can more easily share what they are doing while retaining their autonomy and decentralization as multiple DAOs.
While meta governance is often recognized as valuable with DAOs such as Wildfire focused on delivering meta governance across the web3 ecosystem, to date there has not been a widely accepted way to provide incentives for this metagoverance.
The metaDAO primitive can be used to build meta governance into a group of DAOs from their creation. The DAO created by MTOTM - the metaDAO - itself will have small voting rights across the entire group of member DAOs that comprise the metaDAO. Through the governance of the metaDAO stewards can be elected from the member DAOs themselves or potentially from an organizer of the metaDAO or a meta governance DAO or elsewhere. These stewards would then be able to have votes delegated to them, both from other metaDAO members and from other holders of the member DAOs tokens, increasing their voice.
Every founder - and DAO - and many investors as well - eventually learn the value of diversification.
Early stage technology development is risky. And while every founder, and every DAO, is confident in their ability to become successful, most will not achieve their objects.
Studies suggest that less than 20% of early stage venture investments, for example generate positive returns. Successful investors have been able to invest across enough early stage projects to achieve outsized returns. Founders, and DAOs, however, typically have not.
The results of this lack of diversification often show up years later. Founders look back on years of effort and may have little financial return to show for their efforts. Similarly, even DAOs that progress enough to issue a tradable token may find that their treasuries are almost entirely valued based on the day to day or hour to hour sentiment of token holders.
metaDAOs provide founders and DAOs diversification, so that they are more resilient irrespective of immediate sentiment. The same approach can make it easier for contributors to DAOs to spread their investments across many DAOs without the cost and effort of having to individually assemble a similar portfolio.
There are a number of approaches that metaDAOs to establish their own governance. And the establishment of this governance is important because at creation the metaDAO will have certain responsibilities that need to be governed including:
- securing a shared treasury
- providing supporting services to member DAOs including meta governance
We intend to gather governance options into a simple structure that metaDAOs can select as they are created, incorporating options such as token weighted voting, the selection of operational stewards, oversight structures and tools such as steward report cards, and the use of non transferrable tokens to create an optional bicammeral structure.
Commonly asked questions include:
- How atomic is the collective transaction?
- Could a metaDAO formation be orchestrated that as long as 5 out of 6 for example DAOs do send their tokens in a given time, the metaDAO will be created and otherwise it will be reverted?
- Who decides whether a metaDAO will decide to rebalance, for example shifting the ratios of the DAOs for fundraising or other purposes?
