What is this about?

This discussion, led by DisruptionJoe, revolves around the concept of legitimacy in decision-making processes, particularly in the context of Decentralized Autonomous Organizations (DAOs) and their grants frameworks¹. The conversation was inspired by a Grants Framework Workshop at MetaCamp, where participants identified common problems and successful outcomes they've seen in DAOs' grants frameworks¹. The group also discussed the variable components of a grants round, including different allocation methods, grant eligibility, and regulation¹. The discussion concluded with the understanding that there is no universal funding model for a DAO, and that a clear framework can enhance the effectiveness of programs and rounds¹.

How is the community reacting?

The community has reacted positively to the discussion. Users such as Jengajojo, Blueweb, Jon_Beat, and Invitedtea expressed their appreciation for the insightful post^2,3,4,5. Invitedtea specifically highlighted the discussion on decision variables and funding models, including allocation methods, grant eligibility, regulation, and considerations like representation of minority voices and capital efficiency⁵. Shawn16400 noted the lack of consolidated reading around DAO and web3 grant programs, despite the significant amount of funding distributed in this area. He appreciated DisruptionJoe's leadership in developing thinking in this niche of DAO governance and requested for more content related to grant programs⁶.

Why this is positive?

The discussion is positive as it brings to light the importance of legitimacy in decision-making processes within DAOs. It also provides a platform for participants to share their experiences and insights, leading to a collective understanding of the patterns that play out in DAOs¹. The discussion also emphasizes the need for more testing to validate the effects of different experimentation levers, the importance of group sense-making in creating legitimacy, and the necessity for a DAO native process for aligning mission, vision, and values¹.

Why this is negative?

While the discussion is largely positive, it does highlight some challenges within DAOs, such as issues with mission alignment, voting & power distribution, and reputation & trust¹. It also underscores the complexity of establishing a grants framework that considers various factors such as vision & mission, priorities, values, principles and boundaries, total spending limits, outcome & impact evaluation standards, and composability requirements for software¹.