A Big Test for DAOs: Honing New Compensation and Contribution Practices

The leading tool for intersubjective evaluation is Coordinape. DAOs can experiment with various policies for the mechanism, including for how many points each contributor should have to give out to others (impacting how much weight each contributor has in determining the results), how large the bonus pot should be relative to the base compensation ... See more

A second track would compensate contributors consistently across months based on a combination of their level of commitment to the DAO (measured in time, effort, priority, etc.) over a given period and the amount of value they expect to create over that period. Other members of the DAO (or the contributor’s working group) would be responsible for v... See more

For engagement flexibility, DAOs can create two tracks for contributors. One track would compensate contributors retroactively based on the value that they’ve created for the DAO. Commonly used mechanisms in this area include retroactive funding proposals — where contributors outline the value they’ve created in that period and make a commensurate ... See more

Where DAOs really shine relative to traditional companies is that they can support many contributor engagement models at once.

Many DAOs currently benefit from the flexibility they are able to offer their contributors. In contrast to traditional companies, individuals can move fluidly between DAOs, often contributing to multiple DAOs at the same time. While this flexibility is appealing to many contributors and is one of the factors that has enabled DAOs to attract top tal... See more