Off-chain DAO governance data is queried using BoardRoom API and contains data using Subgraph API. Covalent API provides on-chain real-time data and historic data about DAO treasury and token Distribution. This data is stored in a decentralized manner using IPFS. A hybrid governance solution for DAO proposals is developed by integrating benefits of off-chain and on-chain voting by using Chainlink keepers which stores IPFS proposal data daily on-chain using ERC721 metadata on Skale Network. Our front end provides data visualization and trust score metrics which enables well-informed decision to join a DAO to visitors.
More and more people are currently getting interested in joining a DAO and also see them as a real alternative to a traditional company job. But after various scams that already happened in the DAO world, how do people know that they can trust a DAO and if it’s even a good fit for them? There are many questions to consider before joining a DAO:
- Is the community in this DAO active?
- Do they have a working governance?
- Is the token equally distribution?
- Are they transparent?
- Is the treassury growing?
- Is it fun to work in this DAO?
Currently, there are already tools like DeepDao out there that give insights into various DAOs. But especially for newbies, it is hard to understand what all those metrics really mean.
Therefore, to support new DAO joiners, we developed Do or DAON’t. DoOrDon't supports new DAO joiners to evaluate the transparency and decentralization of a DAO. With the help of our trust scores, they will only join DAOs that align with their values!
New joiners go to our website and look for the DAO they are interested in. The first thing they notice is our trust score:
Our trust score is built up of different metrics. The highest trust score is 100 points and the higher the score is, the more decentralized, transparent, and active is the DAO. In general, the score is calculated based on various metrics. For this MVP, we have the following categories:
The priority of each metrics is based on interviews and a survey we conducted with different DAO members. But since we still know that our defined trust score is quite subjective, we also allow user the option to set their own preferences. After updating the preferences, the trust score then gets calculated based on those changed priorities.
Question to answer: Are there regular proposals and do members actively vote on them?
15 points = 3 or more 10 points = 2-3 5 points = 1 0 points = less than 1
15 points = 50%
10 points = 25-50%
5 points = 10-25%
2.5 points = 5-10%
0 points = 0-5%
Question to answer: Is the token equally / properly distributed?
Parameter: All tokens / all token holder = equal amount of tokens for each member
30 points = equal distribution (+-3% more) 25 points = 1% of members own 5-10% 20 points = 1% own 10-15% 15 points = 1% own 15-20% 10 points =1% own 20-25% 0 = 1% own 25-100% If 1% would result in a number <1 (only 20 members), then 1% rounds up to 1.
How can we make sure people don’t play the system, create many wallets and “fake” an equal distribution?
Wallets who hold more than 5% of tokens and do not vote regularly are a red flag Proof of humanity: But what stops people to verify their main wallet with poh and then create various other wallets?
Create different calculations depending on the size of the DAO (DAO with 1000 members has different distribution than DAO with 10k)
Question to answer:
- Does the DAO have a legit treasury?
- Is the treasury growing and moving?
- less than 10k = 2
- 10-20k= 4
- 20-50k= 6
- 50-100k= 8
- 100-200k= 10
- 200-300K= 12
- 300-500k= 14
- 500k-1M= 16
- more than 1M=18
- 2 extra points for diversification
Where does the treasury come from? Like Crunchbase for DAOs
Where does the treasury go? Are there recurring expenses?
Does the treasury have a multi-sync wallet?
Different calculations depending on the size of the DAO
Question to answer:
- Is the community active?
- Is the growth natural?
5 points for Twitter, 5 points for Discord over 5k followers: 5 points 2,5k-5k followers: 4 points 1k-2.5k: 3 points 500-1k: 2 points 0-500: 1 point
- Include followers, engagement, tweet frequency
Question to answer: Do people enjoy being part of this DAO?
10 points = 5 star rating x points = ratingsx2 → e.g. 8.8 points for 4,4 rating
Anonymous review but we verify that they hold an NFT or token from this DAO → Only NFT and token holder can create a comment. Holders need to be holding the tokens for at least two weeks to create a comment.
Token rewards for posting rating → Incentive
These are all our current metrics we can get through various apis. But they are way more metrics and information we plan to include to improve our trust score further.
Examples:
- DAO structure: Who is working in this DAO and who is in the core team? Tools like Sobol.io or Discord roles
- Bounties and payouts: Dework or Utopia
- Twitter milestones: Coinfeeds
- Furthermore we also want to include a DAO comparison page.
For us, DAOs are all about transparency and due to that it is only a matter of time until even more APIs open up and let us get their data to get even better insights. This means, the more DAO tools and DAO in general develop, the more insights people will gain through our tool.
DAOs can contact us to conduct a in-depth check to receive a verification checkmark. This checkmark add extra points to the trust score.
We provide in-depth analytics and reviews to support DAOs to further increase their credibility.
We provide insights into anonymized user searches and preferences to help DAOs understand the members needs.
- Valerie Grappendorf (UX/UI Designer)
- Sianoi Kimari (Organizational Development & Leadership Researcher)
- Mayur Mistry (Applications Developer & Design Technologist)