More on Entrepreneurship/Creators
Owolabi Judah
3 years ago
How much did YouTube pay for 10 million views?
Ali's $1,054,053.74 YouTube Adsense haul.
YouTuber, entrepreneur, and former doctor Ali Abdaal. He began filming productivity and financial videos in 2017. Ali Abdaal has 3 million YouTube subscribers and has crossed $1 million in AdSense revenue. Crazy, no?
Ali will share the revenue of his top 5 youtube videos, things he's learned that you can apply to your side hustle, and how many views it takes to make a livelihood off youtube.
First, "The Long Game."
All good things take time to bear fruit. Compounding improves everything. Long-term work yields better returns. Ali made his first dollar after nine months and 85 videos.
Second, "One piece of content can transform your life, but you never know which one."
Had he abandoned YouTube at 84 videos without making any money, he wouldn't have filmed the 85th video that altered everything.
Third Lesson: Your Industry Choice Can Multiply.
The industry or niche you target as a business owner or side hustler can have a major impact on how much money you make.
Here are the top 5 videos.
1) 9.8m views: $191,258.16 for 9 passive income ideas
Ali made 2 points.
We should consider YouTube videos digital assets. They're investments, which make us money. His investments are yielding passive income.
Investing extra time and effort in your films can pay off.
2) How to Invest for Beginners — 5.2m Views: $87,200.08.
This video did poorly in the first several weeks after it was published; it was his tenth poorest performer. Don't worry about things you can't control. This applies to life, not just YouTube videos.
He stated we constantly have anxieties, fears, and concerns about things outside our control, but if we can find that line, life is easier and more pleasurable.
3) How to Build a Website in 2022— 866.3k views: $42,132.72.
The RPM was $48.86 per thousand views, making it his highest-earning video. Squarespace, Wix, and other website builders are trying to put ads on it and competing against one other, so ad rates go up.
Because it was beyond his niche, Ali almost didn't make the video. He made the video because he wanted to help at least one person.
4) How I take notes on my iPad in medical school — 5.9m views: $24,479.80
85th video. It's the video that affected Ali's YouTube channel and his life the most. The video's success wasn't certain.
5) How I Type Fast 156 Words Per Minute — 8.2M views: $25,143.17
Ali didn't know this video would perform well; he made it because he can type fast and has been practicing for 10 years. So he made a video with his best advice.
How many views to different wealth levels?
It depends on geography, niche, and other monetization sources. To keep things simple, he would solely utilize AdSense.
How many views to generate money?
To generate money on Youtube, you need 1,000 subscribers and 4,000 hours of view time. How much work do you need to make pocket money?
Ali's first 1,000 subscribers took 52 videos and 6 months. The typical channel with 1,000 subscribers contains 152 videos, according to Tubebuddy. It's time-consuming.
After monetizing, you'll need 15,000 views/month to make $5-$10/day.
How many views to go part-time?
Say you make $35,000/year at your day job. If you work 5 days/week, you make $7,000/year each day. If you want to drop down from 5 days to 4 days/week, you need to make an extra $7,000/year from YouTube, or $600/month.
What's the quit-your-job budget?
Silicon Valley Girl is in a highly successful niche targeting tech-focused folks in the west. When her channel had 500k views/month, she made roughly $3,000/month or $47,000/year, enough to quit your work.
Marina has another 1.5m subscriber channel in Russia, which has a lower rpm because fewer corporations advertise there than in the west. 2.3 million views/month is $4,000/month or $50,000/year, enough to quit your employment.
Marina is an intriguing example because she has three YouTube channels with the same skills, but one is 16x more profitable due to the niche she chose.
In Ali's case, he made 100+ videos when his channel was producing enough money to quit his job, roughly $4,000/month.
How many views make you rich?
Depending on how you define rich. Ali felt prosperous with over $100,000/year and 3–5m views/month.
Conclusion
YouTubers and artists don't treat their work like a company, which is a mistake. Businesses have been attempting to figure this out for decades, if not centuries.
We can learn from the business world how to monetize YouTube, Instagram, and Tiktok and make them into sustainable enterprises where we can hire people and delegate tasks.
Bonus
Watch Ali's video explaining all this:
This post is a summary. Read the full article here
The woman
3 years ago
Because he worked on his side projects during working hours, my junior was fired and sued.
Many developers do it, but I don't approve.
Aren't many programmers part-time? Many work full-time but also freelance. If the job agreement allows it, I see no problem.
Tech businesses' policies vary. I have a friend in Google, Germany. According to his contract, he couldn't do an outside job. Google owns any code he writes while employed.
I was shocked. Later, I found that different Google regions have different policies.
A corporation can normally establish any agreement before hiring you. They're negotiable. When there's no agreement, state law may apply. In court, law isn't so simple.
I won't delve into legal details. Instead, let’s talk about the incident.
How he was discovered
In one month, he missed two deadlines. His boss was frustrated because the assignment wasn't difficult to miss twice. When a team can't finish work on time, they all earn bad grades.
He annoyed the whole team. One team member (anonymous) told the project manager he worked on side projects during office hours. He may have missed deadlines because of this.
The project manager was furious. He needed evidence. The manager caught him within a week. The manager told higher-ups immediately.
The company wanted to set an example
Management could terminate him and settle the problem. But the company wanted to set an example for those developers who breached the regulation.
Because dismissal isn't enough. Every organization invests heavily in developer hiring. If developers depart or are fired after a few months, the company suffers.
The developer spent 10 months there. The employer sacked him and demanded ten months' pay. Or they'd sue him.
It was illegal and unethical. The youngster paid the fine and left the company quietly to protect his career.
Right or wrong?
Is the developer's behavior acceptable? Let's discuss developer malpractice.
During office hours, may developers work on other projects? If they're bored during office hours, they might not. Check the employment contract or state law.
If there's no employment clause, check country/state law. Because you can't justify breaking the law. Always. Most employers own their employees' work hours unless it's a contractual position.
If the company agrees, it's fine.
I also oppose companies that force developers to work overtime without pay.
Most states and countries have laws that help companies and workers. Law supports employers in this case. If any of the following are true, the company/employer owns the IP under California law.
using the business's resources
any equipment, including a laptop used for business.
company's mobile device.
offices of the company.
business time as well. This is crucial. Because this occurred in the instance of my junior.
Company resources are dangerous. Because your company may own the product's IP. If you have seen the TV show Silicon Valley, you have seen a similar situation there, right?
Conclusion
Simple rule. I avoid big side projects. I work on my laptop on weekends for side projects. I'm safe. But I also know that my company might not be happy with that.
As an employee, I suppose I can. I can make side money. I won't promote it, but I'll respect their time, resources, and task. I also sometimes work extra time to finish my company’s deadlines.
Dani Herrera
3 years ago
What prevents companies from disclosing salary information?
Yes, salary details ought to be mentioned in job postings. Recruiters and candidates both agree, so why doesn't it happen?
The short answer is “Unfortunately, it’s not the Recruiter’s decision”. The longer answer is well… A LOT.
Starting in November 2022, NYC employers must include salary ranges in job postings. It should have started in May, but companies balked.
I'm thrilled about salary transparency. This decision will promote fair, inclusive, and equitable hiring practices, and I'm sure other states will follow suit. Good news!
Candidates, recruiters, and ED&I practitioners have advocated for pay transparency for years. Why the opposition?
Let's quickly review why companies have trouble sharing salary bands.
💰 Pay Parity
Many companies and leaders still oppose pay parity. Yes, even in 2022.
💰 Pay Equity
Many companies believe in pay parity and have reviewed their internal processes and systems to ensure equality.
However, Pay Equity affects who gets roles/promotions/salary raises/bonuses and when. Enter the pay gap!
💰Pay Transparency and its impact on Talent Retention
Sharing salary bands with external candidates (and the world) means current employees will have access to that information, which is one of the main reasons companies don't share salary data.
If a company has Pay Parity and Pay Equity issues, they probably have a Pay Transparency policy as well.
Sharing salary information with external candidates without ensuring current employees understand their own salary bands and how promotions/raises are decided could impact talent retention strategies.
This information should help clarify recent conversations.
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Guillaume Dumortier
2 years ago
Mastering the Art of Rhetoric: A Guide to Rhetorical Devices in Successful Headlines and Titles
Unleash the power of persuasion and captivate your audience with compelling headlines.
As the old adage goes, "You never get a second chance to make a first impression."
In the world of content creation and social ads, headlines and titles play a critical role in making that first impression.
A well-crafted headline can make the difference between an article being read or ignored, a video being clicked on or bypassed, or a product being purchased or passed over.
To make an impact with your headlines, mastering the art of rhetoric is essential. In this post, we'll explore various rhetorical devices and techniques that can help you create headlines that captivate your audience and drive engagement.
tl;dr : Headline Magician will help you craft the ultimate headline titles powered by rhetoric devices
Example with a high-end luxury organic zero-waste skincare brand
✍️ The Power of Alliteration
Alliteration is the repetition of the same consonant sound at the beginning of words in close proximity. This rhetorical device lends itself well to headlines, as it creates a memorable, rhythmic quality that can catch a reader's attention.
By using alliteration, you can make your headlines more engaging and easier to remember.
Examples:
"Crafting Compelling Content: A Comprehensive Course"
"Mastering the Art of Memorable Marketing"
🔁 The Appeal of Anaphora
Anaphora is the repetition of a word or phrase at the beginning of successive clauses. This rhetorical device emphasizes a particular idea or theme, making it more memorable and persuasive.
In headlines, anaphora can be used to create a sense of unity and coherence, which can draw readers in and pique their interest.
Examples:
"Create, Curate, Captivate: Your Guide to Social Media Success"
"Innovation, Inspiration, and Insight: The Future of AI"
🔄 The Intrigue of Inversion
Inversion is a rhetorical device where the normal order of words is reversed, often to create an emphasis or achieve a specific effect.
In headlines, inversion can generate curiosity and surprise, compelling readers to explore further.
Examples:
"Beneath the Surface: A Deep Dive into Ocean Conservation"
"Beyond the Stars: The Quest for Extraterrestrial Life"
⚖️ The Persuasive Power of Parallelism
Parallelism is a rhetorical device that involves using similar grammatical structures or patterns to create a sense of balance and symmetry.
In headlines, parallelism can make your message more memorable and impactful, as it creates a pleasing rhythm and flow that can resonate with readers.
Examples:
"Eat Well, Live Well, Be Well: The Ultimate Guide to Wellness"
"Learn, Lead, and Launch: A Blueprint for Entrepreneurial Success"
⏭️ The Emphasis of Ellipsis
Ellipsis is the omission of words, typically indicated by three periods (...), which suggests that there is more to the story.
In headlines, ellipses can create a sense of mystery and intrigue, enticing readers to click and discover what lies behind the headline.
Examples:
"The Secret to Success... Revealed"
"Unlocking the Power of Your Mind... A Step-by-Step Guide"
🎭 The Drama of Hyperbole
Hyperbole is a rhetorical device that involves exaggeration for emphasis or effect.
In headlines, hyperbole can grab the reader's attention by making bold, provocative claims that stand out from the competition. Be cautious with hyperbole, however, as overuse or excessive exaggeration can damage your credibility.
Examples:
"The Ultimate Guide to Mastering Any Skill in Record Time"
"Discover the Revolutionary Technique That Will Transform Your Life"
❓The Curiosity of Questions
Posing questions in your headlines can be an effective way to pique the reader's curiosity and encourage engagement.
Questions compel the reader to seek answers, making them more likely to click on your content. Additionally, questions can create a sense of connection between the content creator and the audience, fostering a sense of dialogue and discussion.
Examples:
"Are You Making These Common Mistakes in Your Marketing Strategy?"
"What's the Secret to Unlocking Your Creative Potential?"
💥 The Impact of Imperatives
Imperatives are commands or instructions that urge the reader to take action. By using imperatives in your headlines, you can create a sense of urgency and importance, making your content more compelling and actionable.
Examples:
"Master Your Time Management Skills Today"
"Transform Your Business with These Innovative Strategies"
💢 The Emotion of Exclamations
Exclamations are powerful rhetorical devices that can evoke strong emotions and convey a sense of excitement or urgency.
Including exclamations in your headlines can make them more attention-grabbing and shareable, increasing the chances of your content being read and circulated.
Examples:
"Unlock Your True Potential: Find Your Passion and Thrive!"
"Experience the Adventure of a Lifetime: Travel the World on a Budget!"
🎀 The Effectiveness of Euphemisms
Euphemisms are polite or indirect expressions used in place of harsher, more direct language.
In headlines, euphemisms can make your message more appealing and relatable, helping to soften potentially controversial or sensitive topics.
Examples:
"Navigating the Challenges of Modern Parenting"
"Redefining Success in a Fast-Paced World"
⚡Antithesis: The Power of Opposites
Antithesis involves placing two opposite words side-by-side, emphasizing their contrasts. This device can create a sense of tension and intrigue in headlines.
Examples:
"Once a day. Every day"
"Soft on skin. Kill germs"
"Mega power. Mini size."
To utilize antithesis, identify two opposing concepts related to your content and present them in a balanced manner.
🎨 Scesis Onomaton: The Art of Verbless Copy
Scesis onomaton is a rhetorical device that involves writing verbless copy, which quickens the pace and adds emphasis.
Example:
"7 days. 7 dollars. Full access."
To use scesis onomaton, remove verbs and focus on the essential elements of your headline.
🌟 Polyptoton: The Charm of Shared Roots
Polyptoton is the repeated use of words that share the same root, bewitching words into memorable phrases.
Examples:
"Real bread isn't made in factories. It's baked in bakeries"
"Lose your knack for losing things."
To employ polyptoton, identify words with shared roots that are relevant to your content.
✨ Asyndeton: The Elegance of Omission
Asyndeton involves the intentional omission of conjunctions, adding crispness, conviction, and elegance to your headlines.
Examples:
"You, Me, Sushi?"
"All the latte art, none of the environmental impact."
To use asyndeton, eliminate conjunctions and focus on the core message of your headline.
🔮 Tricolon: The Magic of Threes
Tricolon is a rhetorical device that uses the power of three, creating memorable and impactful headlines.
Examples:
"Show it, say it, send it"
"Eat Well, Live Well, Be Well."
To use tricolon, craft a headline with three key elements that emphasize your content's main message.
🔔 Epistrophe: The Chime of Repetition
Epistrophe involves the repetition of words or phrases at the end of successive clauses, adding a chime to your headlines.
Examples:
"Catch it. Bin it. Kill it."
"Joint friendly. Climate friendly. Family friendly."
To employ epistrophe, repeat a key phrase or word at the end of each clause.
Sean Bloomfield
3 years ago
How Jeff Bezos wins meetings over
We've all been there: You propose a suggestion to your team at a meeting, and most people appear on board, but a handful or small minority aren't. How can we achieve collective buy-in when we need to go forward but don't know how to deal with some team members' perceived intransigence?
Steps:
Investigate the divergent opinions: Begin by sincerely attempting to comprehend the viewpoint of your disagreeing coworkers. Maybe it makes sense to switch horses in the middle of the race. Have you completely overlooked a blind spot, such as a political concern that could arise as an unexpected result of proceeding? This is crucial to ensure that the person or people feel heard as well as to advance the goals of the team. Sometimes all individuals need is a little affirmation before they fully accept your point of view.
It says a lot about you as a leader to be someone who always lets the perceived greatest idea win, regardless of the originating channel, if after studying and evaluating you see the necessity to align with the divergent position.
If, after investigation and assessment, you determine that you must adhere to the original strategy, we go to Step 2.
2. Disagree and Commit: Jeff Bezos, CEO of Amazon, has had this experience, and Julie Zhuo describes how he handles it in her book The Making of a Manager.
It's OK to disagree when the team is moving in the right direction, but it's not OK to accidentally or purposefully damage the team's efforts because you disagree. Let the team know your opinion, but then help them achieve company goals even if they disagree. Unknown. You could be wrong in today's ever-changing environment.
So next time you have a team member who seems to be dissenting and you've tried the previous tactics, you may ask the individual in the meeting I understand you but I don't want us to leave without you on board I need your permission to commit to this approach would you give us your commitment?
Max Parasol
3 years ago
Are DAOs the future or just a passing fad?
How do you DAO? Can DAOs scale?
DAO: Decentralized Autonomous. Organization.
“The whole phrase is a misnomer. They're not decentralized, autonomous, or organizations,” says Monsterplay blockchain consultant David Freuden.
As part of the DAO initiative, Freuden coauthored a 51-page report in May 2020. “We need DAOs,” he says. “‘Shareholder first' is a 1980s/90s concept. Profits became the focus, not products.”
His predictions for DAOs have come true nearly two years later. DAOs had over 1.6 million participants by the end of 2021, up from 13,000 at the start of the year. Wyoming, in the US, will recognize DAOs and the Marshall Islands in 2021. Australia may follow that example in 2022.
But what is a DAO?
Members buy (or are rewarded with) governance tokens to vote on how the DAO operates and spends its money. “DeFi spawned DAOs as an investment vehicle. So a DAO is tokenomics,” says Freuden.
DAOs are usually built around a promise or a social cause, but they still want to make money. “If you can't explain why, the DAO will fail,” he says. “A co-op without tokenomics is not a DAO.”
Operating system DAOs, protocol DAOs, investment DAOs, grant DAOs, service DAOs, social DAOs, collector DAOs, and media DAOs are now available.
Freuden liked the idea of people rallying around a good cause. Speculators and builders make up the crypto world, so it needs a DAO for them.
,Speculators and builders, or both, have mismatched expectations, causing endless, but sometimes creative friction.
Organisms that boost output
Launching a DAO with an original product such as a cryptocurrency, an IT protocol or a VC-like investment fund like FlamingoDAO is common. DAOs enable distributed open-source contributions without borders. The goal is vital. Sometimes, after a product is launched, DAOs emerge, leaving the company to eventually transition to a DAO, as Uniswap did.
Doing things together is a DAO. So it's a way to reward a distributed workforce. DAOs are essentially productivity coordination organisms.
“Those who work for the DAO make permissionless contributions and benefit from fragmented employment,” argues Freuden. DAOs are, first and foremost, a new form of cooperation.
DAO? Distributed not decentralized
In decentralized autonomous organizations, words have multiple meanings. DAOs can emphasize one aspect over another. Autonomy is a trade-off for decentralization.
DAOstack CEO Matan Field says a DAO is a distributed governance system. Power is shared. However, there are two ways to understand a DAO's decentralized nature. This clarifies the various DAO definitions.
A decentralized infrastructure allows a DAO to be decentralized. It could be created on a public permissionless blockchain to prevent a takeover.
As opposed to a company run by executives or shareholders, a DAO is distributed. Its leadership does not wield power
Option two is clearly distributed.
But not all of this is “automated.”
Think quorum, not robot.
DAOs can be autonomous in the sense that smart contracts are self-enforcing and self-executing. So every blockchain transaction is a simplified smart contract.
Dao landscape
The DAO landscape is evolving.
Consider how Ethereum's smart contracts work. They are more like self-executing computer code, which Vitalik Buterin calls “persistent scripts”.
However, a DAO is self-enforcing once its members agree on its rules. As such, a DAO is “automated upon approval by the governance committee.” This distinguishes them from traditional organizations whose rules must be interpreted and applied.
Why a DAO? They move fast
A DAO can quickly adapt to local conditions as a governance mechanism. It's a collaborative decision-making tool.
Like UkraineDAO, created in response to Putin's invasion of Ukraine by Ukrainian expat Alona Shevchenko, Nadya Tolokonnikova, Trippy Labs, and PleasrDAO. The DAO sought to support Ukrainian charities by selling Ukrainian flag NFTs. With a single mission, a DAO can quickly raise funds for a country accepting crypto where banks are distrusted.
This could be a watershed moment for DAOs.
ConstitutionDAO was another clever use case for DAOs for Freuden. In a failed but “beautiful experiment in a single-purpose DAO,” ConstitutionDAO tried to buy a copy of the US Constitution from a Sotheby's auction. In November 2021, ConstitutionDAO raised $47 million from 19,000 people, but a hedge fund manager outbid them.
Contributions were returned or lost if transactional gas fees were too high. The ConstitutionDAO, as a “beautiful experiment,” proved exceptionally fast at organizing and crowdsourcing funds for a specific purpose.
We may soon be applauding UkraineDAO's geopolitical success in support of the DAO concept.
Some of the best use cases for DAOs today, according to Adam Miller, founder of DAOplatform.io and MIDAO Directory Services, involve DAO structures.
That is, a “flat community is vital.” Prototyping by the crowd is a good example. To succeed, members must be enthusiastic about DAOs as an alternative to starting a company. Because DAOs require some hierarchy, he agrees that "distributed is a better acronym."
Miller sees DAOs as a “new way of organizing people and resources.” He started DAOplatform.io, a DAO tooling advisery that is currently transitioning to a DAO due to the “woeful tech options for running a DAO,” which he says mainly comprises of just “multisig admin keys and a voting system.” So today he's advising on DAO tech stacks.
Miller identifies three key elements.
Tokenization is a common method and tool. Second, governance mechanisms connected to the DAO's treasury. Lastly, community.”
How a DAO works...
They can be more than glorified Discord groups if they have a clear mission. This mission is a mix of financial speculation and utopianism. The spectrum is vast.
The founder of Dash left the cryptocurrency project in 2017. It's the story of a prophet without an heir. So creating a global tokenized evangelical missionary community via a DAO made sense.
Evan Duffield, a “libertarian/anarchist” visionary, forked Bitcoin in January 2014 to make it instant and essentially free. He went away for a while, and DASH became a DAO.
200,000 US retailers, including Walmart and Barnes & Noble, now accept Dash as payment. This payment system works like a gift card.
Arden Goldstein, Dash's head of crypto, DAO, and blockchain marketing, claims Dash is the “first successful DAO.” It was founded in 2016 and disbanded after a hack, an Ethereum hard fork and much controversy. But what are the success metrics?
Crypto success is measured differently, says Goldstein. To achieve common goals, people must participate or be motivated in a healthy DAO. People are motivated to complete tasks in a successful DAO. And, crucially, when tasks get completed.
“Yes or no, 1 or 0, voting is not a new idea. The challenge is getting people to continue to participate and keep building a community.” A DAO motivates volunteers: Nothing keeps people from building. The DAO “philosophy is old news. You need skin in the game to play.”
MasterNodes must stake 1000 Dash. Those members are rewarded with DASH for marketing (and other tasks). It uses an outsourced team to onboard new users globally.
Joining a DAO is part of the fun of meeting crazy or “very active” people on Discord. No one gets fired (usually). If your work is noticed, you may be offered a full-time job.
DAO community members worldwide are rewarded for brand building. Dash is also a great product for developing countries with high inflation and undemocratic governments. The countries with the most Dash DAO members are Russia, Brazil, Venezuela, India, China, France, Italy, and the Philippines.
Grassroots activism makes this DAO work. A DAO is local. Venezuelans can't access Dash.org, so DAO members help them use a VPN. DAO members are investors, fervent evangelicals, and local product experts.
Every month, proposals and grant applications are voted on via the Dash platform. However, the DAO may decide not to fund you. For example, the DAO once hired a PR firm, but the community complained about the lack of press coverage. This raises a great question: How are real-world contractual obligations met by a DAO?
Does the DASH DAO work?
“I see the DAO defund projects I thought were valuable,” Goldstein says. Despite working full-time, I must submit a funding proposal. “Much faster than other companies I've worked on,” he says.
Dash DAO is a headless beast. Ryan Taylor is the CEO of the company overseeing the DASH Core Group project.
The issue is that “we don't know who has the most tokens [...] because we don't know who our customers are.” As a result, “the loudest voices usually don't have the most MasterNodes and aren't the most invested.”
Goldstein, the only female in the DAO, says she worked hard. “I was proud of the DAO when I made the logo pink for a day and got great support from the men.” This has yet to entice a major influx of female DAO members.
Many obstacles stand in the way of utopian dreams.
Governance problems remain
And what about major token holders behaving badly?
In early February, a heated crypto Twitter debate raged on about inclusion, diversity, and cancel culture in relation to decentralized projects. In this case, the question was how a DAO addresses alleged inappropriate behavior.
In a corporation, misconduct can result in termination. In a DAO, founders usually hold a large number of tokens and the keys to the blockchain (multisignature) or otherwise.
Brantly Millegan, the director of operations of Ethereum Name Service (ENS), made disparaging remarks about the LGBTQ community and other controversial topics. The screenshotted comments were made in 2016 and brought to the ENS board's attention in early 2022.
His contract with ENS has expired. But what of his large DAO governance token holdings?
Members of the DAO proposed a motion to remove Millegan from the DAO. His “delegated” votes net 370,000. He was and is the DAO's largest delegate.
What if he had refused to accept the DAO's decision?
Freuden says the answer is not so simple.
“Can a DAO kick someone out who built the project?”
The original mission “should be dissolved” if it no longer exists. “Does a DAO fail and return the money? They must r eturn the money with interest if the marriage fails.”
Before an IPO, VCs might try to remove a problematic CEO.
While DAOs use treasury as a governance mechanism, it is usually controlled (at least initially) by the original project creators. Or, in the case of Uniswap, the venture capital firm a16z has so much voting power that it has delegated it to student-run blockchain organizations.
So, can DAOs really work at scale? How to evolve voting paradigms beyond token holdings?
The whale token holder issue has some solutions. Multiple tokens, such as a utility token on top of a governance token, and quadratic voting for whales, are now common. Other safeguards include multisignature blockchain keys and decision time locks that allow for any automated decision to be made. The structure of each DAO will depend on the assets at stake.
In reality, voter turnout is often a bigger issue.
Is DAO governance scalable?
Many DAOs have low participation. Due to a lack of understanding of technology, apathy, or busy lives. “The bigger the DAO, the fewer voters who vote,” says Freuden.
Freuden's report cites British anthropologist Dunbar's Law, who argued that people can only maintain about 150 relationships.
"As the DAO grows in size, the individual loses influence because they perceive their voting power as being diminished or insignificant. The Ringelmann Effect and Dunbar's Rule show that as a group grows in size, members become lazier, disenfranchised, and detached.
Freuden says a DAO requires “understanding human relationships.” He believes DAOs work best as investment funds rooted in Cryptoland and small in scale. In just three weeks, SyndicateDAO enabled the creation of 450 new investment group DAOs.
Due to SEC regulations, FlamingoDAO, a famous NFT curation investment DAO, could only have 100 investors. The “LAO” is a member-directed venture capital fund and a US LLC. To comply with US securities law, they only allow 100 members with a 120ETH minimum staking contribution.
But how did FlamingoDAO make investment decisions? How often did all 70 members vote? Art and NFTs are highly speculative.
So, investment DAOs are thought to work well in a small petri dish environment. This is due to a crypto-native club's pooled capital (maximum 7% per member) and crowdsourced knowledge.
While scalability is a concern, each DAO will operate differently depending on the goal, technology stage, and personalities. Meetups and hackathons are common ways for techies to collaborate on a cause or test an idea. But somebody still organizes the hack.
Holographic consensus voting
But clever people are working on creative solutions to every problem.
Miller of DAOplatform.io cites DXdao as a successful DAO. Decentralized product and service creator DXdao runs the DAO entirely on-chain. “You earn voting rights by contributing to the community.”
DXdao, a DAOstack fork, uses holographic consensus, a voting algorithm invented by DAOstack founder Matan Field. The system lets a random or semi-random subset make group-wide decisions.
By acting as a gatekeeper for voters, DXdao's Luke Keenan explains that “a small predictions market economy emerges around the likely outcome of a proposal as tokens are staked on it.” Also, proposals that have been financially boosted have fewer requirements to be successful, increasing system efficiency.” DXdao “makes decisions by removing voting power as an economic incentive.”
Field explains that holographic consensus “does not require a quorum to render a vote valid.”
“Rather, it provides a parallel process. It is a game played (for profit) by ‘predictors' who make predictions about whether or not a vote will be approved by the voters. The voting process is valid even when the voting quorum is low if enough stake is placed on the outcome of the vote.
“In other words, a quorum is not a scalable DAO governance strategy,” Field says.
You don't need big votes on everything. If only 5% vote, fine. To move significant value or make significant changes, you need a longer voting period (say 30 days) and a higher quorum,” says Miller.
Clearly, DAOs are maturing. The emphasis is on tools like Orca and processes that delegate power to smaller sub-DAOs, committees, and working groups.
Miller also claims that “studies in psychology show that rewarding people too much for volunteering disincentivizes them.” So, rather than giving out tokens for every activity, you may want to offer symbolic rewards like POAPs or contributor levels.
“Free lunches are less rewarding. Random rewards can boost motivation.”
Culture and motivation
DAOs (and Web3 in general) can give early adopters a sense of ownership. In theory, they encourage early participation and bootstrapping before network effects.
"A double-edged sword," says Goldstein. In the developing world, they may not be fully scalable.
“There must always be a leader,” she says. “People won't volunteer if they don't want to.”
DAO members sometimes feel entitled. “They are not the boss, but they think they should be able to see my calendar or get a daily report,” Goldstein gripes. Say, “I own three MasterNodes and need to know X, Y, and Z.”
In most decentralized projects, strong community leaders are crucial to influencing culture.
Freuden says “the DAO's community builder is the cryptoland influencer.” They must “disseminate the DAO's culture, cause, and rally the troops” in English, not tech.
They must keep members happy.
So the community builder is vital. Building a community around a coin that promises riches is simple, but keeping DAO members motivated is difficult.
It's a human job. But tools like SourceCred or coordinate that measure contributions and allocate tokens are heavily marketed. Large growth funds/community funds/grant programs are common among DAOs.
The Future?
Onboarding, committed volunteers, and an iconic community builder may be all DAOs need.
It takes a DAO just one day to bring together a passionate (and sometimes obsessive) community. For organizations with a common goal, managing stakeholder expectations is critical.
A DAO's core values are community and cause, not scalable governance. “DAOs will work at scale like gaming communities, but we will have sub-DAOs everywhere like committees,” says Freuden.
So-called holographic consensuses “can handle, in principle, increasing rates of proposals by turning this tension between scale and resilience into an economical cost,” Field writes. Scalability is not guaranteed.
The DAO's key innovation is the fragmented workplace. “Voting is a subset of engagement,” says Freuden. DAO should allow for permissionless participation and engagement. DAOs allow for remote work.”
In 20 years, DAOs may be the AI-powered self-organizing concept. That seems far away now. But a new breed of productivity coordination organisms is maturing.