A Problem-Solution Approach to DAO Governance Design: The Modular DAO Model

Introducing a novel governance model for SpringDAO 1 , a decentralised autonomous organisation (DAO) to fund and manage infrastructure development in rural Africa, this paper focuses on reducing centralization and enhancing collective decision-making within a charity organization devoted to infrastructure project development. Formulated through quadratic voting and representative democracy, the model inherently addresses security and privacy concerns. By dispersing decision-making authority, it mitigates potential vulnerabilities tied to centralized structures. The design’s emphasis on addressing controversial matters through voting ensures comprehensive security validation. Technical components are built using an open-source modular standard, Zodiac, promoting security through community inspection and swift bug fixes. The introduction of a bridge for side-chain voting enhances user accessibility and potentially reduces risks through the use of multiple chains and side-chains, reducing the single point of failure. To showcase their functionality, the technical components are assembled into a simple DAO prototype, complete with two customized front-end applications. This design demonstrates practical solutions with potential to enhance collective decision-making, reduce centralization, and improve the efficiency of charity organizations while considering security implications along with other concerns.