Merge pull request #7446 from scottfits/patch-1

Improve page on DAOs

Author: minimalsm

src/content/dao/index.md

@@ -15,11 +15,11 @@ summaryPoint3: A safe place to commit funds to a specific cause.
 
 ## What are DAOs? {#what-are-daos}
 
-DAOs are an effective and safe way to work with like-minded folks around the globe.
+A DAO is a collectively-owned, blockchain-governed organization working towards a shared mission.
 
-Think of them like an internet-native business that's collectively owned and managed by its members. They have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice.
+DAOs allow us to work with like-minded folks around the globe without trusting a benevolent leader to manage the funds or operations. There is no CEO who can spend funds on a whim or CFO who can manipulate the books. Instead, blockchain-based rules baked into the code define how the organization works and how funds are spent.
 
-There's no CEO who can authorize spending based on their own whims and no chance of a dodgy CFO manipulating the books. Everything is out in the open and the rules around spending are baked into the DAO via its code.
+They have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice, and everything happens transparently on-chain.
 
 ## Why do we need DAOs? {#why-dao}
 
@@ -41,10 +41,60 @@ This opens up so many new opportunities for global collaboration and coordinatio
 
 To help this make more sense, here's a few examples of how you could use a DAO:
 
-- A charity – you can accept membership and donations from anyone in the world and the group can decide how they want to spend donations.
-- A freelancer network – you could create a network of contractors who pool their funds for office spaces and software subscriptions.
+- A charity – you could accept donations from anyone in the world and vote on which causes to fund.
+- Collective ownership – you could purchase physical or digital assets and members can vote on how to use them.
 - Ventures and grants – you could create a venture fund that pools investment capital and votes on ventures to back. Repaid money could later be redistributed amongst DAO-members.
 
+## How do DAOs work? {#how-daos-work}
+
+The backbone of a DAO is its smart contract, which defines the rules of the organization and holds the group's treasury. Once the contract is live on Ethereum, no one can change the rules except by a vote. If anyone tries to do something that's not covered by the rules and logic in the code, it will fail. And because the treasury is defined by the smart contract too that means no one can spend the money without the group's approval either. This means that DAOs don't need a central authority. Instead, the group makes decisions collectively, and payments are automatically authorized when votes pass.
+
+This is possible because smart contracts are tamper-proof once they go live on Ethereum. You can't just edit the code (the DAOs rules) without people noticing because everything is public.
+
+<DocLink to="/smart-contracts/">
+  More on smart contracts
+</DocLink>
+
+## Ethereum and DAOs {#ethereum-and-daos}
+
+Ethereum is the perfect foundation for DAOs for a number of reasons:
+
+- Ethereum’s own consensus is distributed and established enough for organizations to trust the network.
+- Smart contract code can’t be modified once live, even by its owners. This allows the DAO to run by the rules it was programmed with.
+- Smart contracts can send/receive funds. Without this you'd need a trusted intermediary to manage group funds.
+- The Ethereum community has proven to be more collaborative than competitive, allowing for best practices and support systems to emerge quickly.
+
+## DAO governance {#dao-governance}
+
+There are many considerations when governing a DAO, such as how voting and proposals work.
+
+### Delegation {#governance-delegation}
+
+Delegation is like the DAO version of representative democracy. Token holders delegate votes to users who nominate themselves and commit to stewarding the protocol and staying informed. 
+
+#### A famous example {#governance-example}
+
+[ENS](https://claim.ens.domains/delegate-ranking) – ENS holders can delegate their votes to engaged community members to represent them.
+
+### Automatic transaction governance {#governance-example}
+In many DAOs, transactions will be automatically executed if a quorum of members votes affirmative. 
+
+#### A famous example {#governance-example}
+
+[Nouns](https://nouns.wtf) – In Nouns DAO, a transaction is automatically executed if a quorum of votes is met and a majority votes affimrative, as long as it is not vetoed by the founders.
+
+### Multisig governance {#governance-example}
+
+While DAOs may have thousands of voting members, funds can live in a wallet shared by 5-20 active community members who are trusted and usually doxxed (public identities known to the community). After a vote, the multisig signers execute the will of the community.
+
+## DAO laws {#dao-laws}
+
+In 1977, Wyoming invented the LLC, which protects entrepreneurs and limits their liability. More recently, they pioneered the DAO law that establishes legal status for DAOs. Currently Wyoming, Vermont, and the Virgin Islands have DAO laws in some form.
+
+#### A famous example {#law-example}
+
+[CityDAO](https://citydao.io) – CityDAO used Wyoming's DAO law to buy 40 acres of land near Yellowstone National Park.
+
 ## DAO membership {#dao-membership}
 
 There are different models for DAO membership. Membership can determine how voting works and other key parts of the DAO.
@@ -57,7 +107,7 @@ _Typically used to govern broad decentralized protocols and/or tokens themselves
 
 #### A famous example {#token-example}
 
-[MakerDAO](https://makerdao.com) – MakerDAO's token MKR is widely available on decentralized exchanges. So anyone can buy into having voting power on the Maker protocol's future.
+[MakerDAO](https://makerdao.com) – MakerDAO's token MKR is widely available on decentralized exchanges and anyone can buy into having voting power on Maker protocol's future.
 
 ### Share-based membership {#share-based-membership}
 
@@ -79,25 +129,6 @@ _Typically used for decentralized development and governance of protocols and da
 
 [DXdao](https://DXdao.eth.link) – DXdao is a global sovereign collective building and governing decentralized protocols and applications since 2019. It leverages reputation-based governance and holographic consensus to coordinate and manage funds, meaning no one can buy their way into influencing its future.
 
-## How do DAOs work? {#how-daos-work}
-
-The backbone of a DAO is its smart contract. The contract defines the rules of the organization and holds the group's treasury. Once the contract is live on Ethereum, no one can change the rules except by a vote. If anyone tries to do something that's not covered by the rules and logic in the code, it will fail. And because the treasury is defined by the smart contract too that means no one can spend the money without the group's approval either. This means that DAOs don't need a central authority. Instead, the group makes decisions collectively, and payments are automatically authorized when votes pass.
-
-This is possible because smart contracts are tamper-proof once they go live on Ethereum. You can't just edit the code (the DAOs rules) without people noticing because everything is public.
-
-<DocLink to="/smart-contracts/">
-  More on smart contracts
-</DocLink>
-
-## Ethereum and DAOs {#ethereum-and-daos}
-
-Ethereum is the perfect foundation for DAOs for a number of reasons:
-
-- Ethereum’s own consensus is distributed and established enough for organizations to trust the network.
-- Smart contract code can’t be modified once live, even by its owners. This allows the DAO to run by the rules it was programmed with.
-- Smart contracts can send/receive funds. Without this you'd need a trusted intermediary to manage group funds.
-- The Ethereum community has proven to be more collaborative than competitive, allowing for best practices and support systems to emerge quickly.
-
 ## Join / start a DAO {#join-start-a-dao}
 
 ### Join a DAO {#join-a-dao}
@@ -117,6 +148,7 @@ Ethereum is the perfect foundation for DAOs for a number of reasons:
 ### DAO Articles {#dao-articles}
 
 - [What's a DAO?](https://aragon.org/dao) – [Aragon](https://aragon.org/)
+- [The DAO Handbook](https://daohandbook.xyz)
 - [House of DAOs](https://wiki.metagame.wtf/docs/great-houses/house-of-daos) – [Metagame](https://wiki.metagame.wtf/)
 - [What is a DAO and what is it for?](https://daohaus.substack.com/p/-what-is-a-dao-and-what-is-it-for) – [DAOhaus](https://daohaus.club/)
 - [How to Start a DAO-Powered Digital Community](https://daohaus.substack.com/p/four-and-a-half-steps-to-start-a) – [DAOhaus](https://daohaus.club/)
@@ -126,3 +158,4 @@ Ethereum is the perfect foundation for DAOs for a number of reasons:
 ### Videos {#videos}
 
 - [What is a DAO in crypto?](https://youtu.be/KHm0uUPqmVE)
+- [Can a DAO Build a City?](https://www.ted.com/talks/scott_fitsimones_could_a_dao_build_the_next_great_city) – [TED](https://www.ted.com/)