May(or) May Not? | BanklessDAO Weekly Rollup

Catch Up With What Happened This Week in BanklessDAO

Apr 20, 2024

Dear Bankless Nation 🏴,

This week, we are paving the way for a dynamic future where the DAO's direction is shaped by its members.

In a bold move towards evolution and experimentation, BanklessDAO is introducing tlBANK-Gated Retro Funding. This initiative aims to redefine the DAO's purpose, vision, and membership structure. The bDAO multisig believes this step is necessary for the DAO's perpetuity and will encourage bottom-up initiative from its members by kickstarting retro funding for selective groups to pioneer specific aspects of growth for the community.

In addition, the Governance Department has been discussing bDAO's future shape, but the broader DAO's voice seems to be muted. This calls for unity and collaboration. In light of that, Oakfloors from the PM Guild put a document together to gather feedback from various groups across the DAO. We are to answer some questions and input our responses in the document, so do check it out if you are yet to.

On Forum, a proposal suggests electing a Mayor for BanklessDAO, whose compensation will be in BANK and is subject to milestone-based unlocks over the next 24 months. They would also have executive powers over the DAO's day-to-day operations. However, is this the best move for the DAO? Let us know.

There is indeed no greater joy than seeing community members come together to chart the way forward for the DAO. Join us as we embrace change and navigate towards a more inclusive and impactful BanklessDAO. In case you missed anything this week, now’s a good time to catch up!

Contributors: Ritaakubue, Boluwatife, Tonytad, Paulito, Kornekt, WinVerse

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🏃‍♀️ Catch up: Review this week's Community Call notes or listen to the recording.

Proposals in Discussion

📝 Elect a Mayor to save the DAO

This proposal suggests the need to appoint a mayor who will preside over the executive leadership of the DAO, along with a team. The mayor will be compensated in BANK, with milestones unlocking over 24 months, creating strong incentives and alignment. Is this a path you think the DAO needs at this time? Let us know your thoughts on the Forum.

May(or) May Not?

Author: Boluwatife

Dao_mayor_111500.jpg (1050×600) — Image: Tonytad

For over two years now, BanklessDAO has been grappling with fundamental issues related to resource allocation, key performance indicator (KPI) setting, and tokenomics. The GSE (Governance Solution Engineers), initially proposed as a solution to these challenges, lacked executive powers and failed to refocus the DAO on addressing its core issues. As the token value continued to bleed, the multisig was forced to step in and pause all funding, signaling the critical nature of the situation.

Despite ongoing efforts within the DAO, a lack of coordination and commitment to deliverables and KPIs persists, perpetuating the problems the organization has been facing. Some initiatives propose the creation of a new governance token or NFT, potentially leaving many current holders behind and risking a fork — a future that the once-powerful BanklessDAO would rather avoid.

A Mayor to the Rescue?

Recognizing the strengths of a strong brand and a wide community, while acknowledging the lack of effective executive leadership, a proposal has emerged to elect a Mayor — a concept successfully implemented by other DAOs like FWB 1. The Mayor would be compensated in BANK, subject to milestone-based unlocks over the next 24 months, creating a powerful incentive structure and attracting a strong candidate with skin in the game.

The proposal emphasized that with the DAO owning over 60% of its token supply and over $200,000 in USDC and ETH, there is ample room to generously allocate compensation for the Mayor and their executive team. The Mayor and their team would wield executive powers over the DAO's day-to-day operations, working with the current community, guilds, token holders, and stakeholders to create a robust 12-month roadmap, including a new mission, vision, KPIs, and revenue generation strategies. A major DAO restructure is likely to be part of this endeavor.

A detailed compensation schedule and statute of limitations defining the scope of the Mayor's powers and matters requiring BANK holder votes will be modeled with the governance council and put to a vote by BANK holders upon approval of this proposal.

If the proposal passes, there will be a one-month period to collect candidate nominations, during which the mayoral race will be heavily promoted within and outside the DAO. Simultaneously, the DAO will work on defining the compensation package and statute of limitations in greater detail. At the end of this period, a snapshot vote of all BANK holders will decide who the new Mayor will be.

The proposal stated that the introduction of a Mayor could be a positive step for BanklessDAO, as it addresses the lack of effective executive leadership and provides a clear path forward with a dedicated individual or team at the helm. A well-structured compensation package tied to milestones and the token's performance could attract top talent and align incentives for the Mayor to work towards the DAO's success.

Community Response

Members of the community have voiced out that the appointment of a Mayor raises concerns about centralization and potential conflicts of interest. DAOs were conceived as decentralized organizations, and the concentration of power in the hands of a single individual or team could undermine this core principle. There is a risk that the Mayor's interests may diverge from those of the broader community, leading to decisions that prioritize personal gain over the collective good.

Additionally, the compensation package and the allocation of a significant portion of the DAO's resources to a single individual or team may be met with resistance from some members, who may view it as an unfair distribution of wealth or an erosion of the DAO's democratic values.

Ultimately, the decision to introduce a Mayor will depend on the collective wisdom of the BanklessDAO community and their assessment of the potential benefits and drawbacks. We are waiting for you. Head over to Forum and let us know what you think.

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