How to run a DAO on-chain without voting on everything
December 6th, 2022

At Tally, we've helped organizations like ENS, Gitcoin and Rarible become on-chain DAOs. They use an ERC-20 token or NFT for voting power and a Governor Contract to manage proposals. The Governor controls the treasury and the protocol.

This setup lets DAOs take advantage of the best parts of blockchains and smart contracts. On-chain DAOs are trust-minimized. They don't depend on third parties to execute decisions. Instead, they run on neutral, transparent blockchains.

But there's a catch!

Voting on every decision does not scale. People do not have the bandwidth to vote on hundreds of proposals. Organizations need to increase their bandwidth without trading away trust-minimization and neutrality.

DAOs can increase organizational bandwidth by relaxing trust assumptions. But, that comes at the cost of what makes them special in the first place. Some DAOs trust contributors or small groups with control and custody of funds. But that trust model gives up transparency, openness and security.

DAOs can do better. We need setups that increase bandwidth without relying on trusted third parties. Good news: We have the technology to make this happen!

Tally's recipe for increasing governance bandwidth without sacrificing on-chain basedness.

The tools to scale DAOs already exist, and they're getting better every day. The cost of blockspace used to be the biggest hurdle. Rollups increased the supply and reduced the cost of blockspace. DAOs will happily use all this new blockspace for permissions, approvals and automation. Let’s DAOit together.

Run your DAO on-chain today

Reach out to us on twitter at @tallyxyz and stop by our event: On-Chain Summit on December 7, 2022. On-Chain Summit brings together projects building the infrastructure for running DAOs on-chain!

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