DAO#2: Details of My Plan to Raise $1 Billion for Effective Altruism Using a DAO (Decentralized Autonomous Organization)

DAOMaximalist20 Feb 2023 18:39 UTC

−15 points

Building effective altruism Effective altruism funding

[Update (25 February 2023):

Taking into consideration the feedback received in the comments, I will not be posting any more DAO updates here on the forum. Updates shall henceforth be posted on our new substack at https://effectivedao.substack.com

Anyone still interested in this project may check / subscribe on the substack or follow us on:

Twitter: @EffectiveDAO
Telegram : https://t.me/effdao

Remember the auction dates: 12:01 AM UTC on 27 February 2023 to 11:59 PM UTC on 1 March 2023.

Auction link: https://bit.ly/altruistwarriors

More about the auction: Click Here

If you do end up buying an NFT, please send me a DM here or on Twitter so that I can send you an invite to the DAO’s Private Discord. ]

[ Previous Update:

This is the 2nd update in the series, below is the first update. If you haven’t read the first update please read it first:

DAO#1: I’m About to raise $1Billion for (and Fix the Problems of) EA using a DAO ]

Introduction

In my previous message posted some hours ago, I announced that I am about to launch a DAO (Decentralized Autonomous Organization) with a mission to raise $1 Billion USD mainly for effective altruism every 12 Months. (Thanks to all those who commented and those who reached out privately, I really appreciate 🙏)

But what, again, is a DAO?

A DAO is an internet-native type of blockchain-enabled organization made up of a group of people with shared interests or goals and a shared treasury coming together to collaborate (usually over the internet) and to work towards achieving their shared goals.

Decisions in a DAO are made democratically with every member having a say in the affairs of the organization usually through the ability to discuss, debate and vote on issues relating to the DAO’s activities, policies and governance. Financial controls and voting are enabled by blockchain technology with transactions and voting results commonly recorded on-chain for full transparency.

Learn more about DAOs and how they work here and here

(Newbie Tip: DAO is commonly pronounced as if it’s a word and not an acronym. So it’s usually pronounced “dao” (rhymes with “how”) and not “D. A. O.”)

In other words, members of a DAO can pool funds together and then vote on how the funds are to be spent. Members are also able to vote on governance decisions that determine how the organization is run and managed. All of this is done in a transparent and decentralized manner enabled and facilitated by blockchain technology.

My plan is to create a DAO through which the effective altruism movement can collaborate to raise funding and provide grants for projects that are aligned with the vision and goals of the movement.

In this article I present more details about the way the DAO will work.

(Note that this is not a final plan and everything presented here would ultimately be subject to debate and modification by the DAO members.)

A Quick SWOT Analysis of DAOs and EA

Strength—A large (and fast growing), highly motivated community peppered with very smart people.
Weakness—DAOs are new and largely experimental. No generally agreed best practices or standards have been developed yet and most DAOs are largely winging it.
Opportunity—Being quite early, among the first movers in the space of charity-related DAOs (none has so far attempted fundraising on this scale).
Threat—Technological barriers (many EAs and potential DAO members are probably not yet very familiar with web3 and blockchain technology).

My Approach to Crafting the Framework

In my approach, I viewed the structure of the DAO as a mix of a country (USA-like federation), a large corporation and a large social movement (similar to the one described in the book Impact Networks by David Ehrlichman).

I did this because federations, corporations and movements are all various paradigms with which humans have successfully organized themselves at scale. A DAO is not so much different from them in that regard. Just that in a DAO most of the organization and co-ordination occurs virtually via various internet-based applications.

I drew inspiration from how these other organizational paradigms are structured and came up with a new framework bearing some resemblance to certain aspects of each of them. Some elements of my own crafting were also thrown into the mix.

I was also inspired by some of the tenets of Holacracy in which corporate governance is not realized in a top down fashion but in a more sideways, decentralized manner.

In all, my framework is still very much experimental but it is only a minimum viable product (MVP), rather like a beta version that is meant to evolve into a battle-tested blueprint resulting from being repeatedly fine tuned over time as the DAO matures.

I hope to eventually opensource this blueprint so that anybody can follow its guidelines to create their own well-structured DAO instead of having to always reinvent the [DAO] wheel.

Overview of the Framework

The structure that I have created is mostly flat and highly decentralized, made up of autonomous groups (or circles), each with their own budget and agency to determine their spending, tasks, targets, OKRs and KPIs (which must all be in alignment with (and in furtherance of) the overarching mission, vision roadmaps and policies of the DAO).

These circles are analogous to departments in a company (or ministries / departments / agencies in a government). Most of them are function-oriented with each circle tasked with responsibility for a related set of functions which form a part of what the DAO needs to do to achieve its overarching mission, goals and targets.

In the framework, leadership and governance are spread horizontally across the circles and circle leaders are voted in for a fixed tenure after which new elections are carried out. There are no limits, though, to how many times an individual may be voted back in to continue for another leadership tenure.

In addition to the governance (non-)hierarchy and largely independent circles, the framework also embodies the following characteristics:

An ethos of transparency, epistemic and moral integrity, inclusivity, safety, accessibility, diversity, democracy, accountability, financial prudence, humility, empathy, generosity, thankfulness, taking responsibility, being daring, not afraid to speak out and stepping up to challenges amongst others
An overwhelming culture of friendship, collaboration, support, tolerance and reconciliation
In-built institution-like independent checks and balances
In-built mechanisms for continuous innovation, improvement and progressive decentralization
In-built mechanisms for fault-tolerance, redundancy and succession
Mostly asynchronous, virtual, remote-first work culture (minimal real-time meetings)
Working “in the open” and “over-communicating” to enhance transparency and ensure that information is easy and quick to access such that everyone can effortlessly stay up to date with everything going on in every area of the DAO
Regular community calls to keep everyone updated and in sync

Phases of Development

There shall be three main phases in the initial development of the DAO:

Phase 1 (Setup phase):

For the first two or three months of the project, my team and I will work directly with the first cohort of DAO members to set things up properly. This cohort will be made up of buyers and holders of the first collection of membership NFTs which are going on auction in a few days time.
172 NFTs will be auctioned with an additional 10 given out for free so there will be about 182 members in the DAO during this phase. The main purpose of this phase is to hash out the finer details of the framework and policies, test out the working processes and prepare to scale up to handle the influx of the second cohort of DAO members (to be onboarded through a sale of 5,555 NFTs).

Phase 2 (Kickoff phase):

Phase 2 begins with the sale of 5,555 NFTs and onboarding of the second cohort of DAO members (ideally one NFT per member). This phase is like a pilot phase for the DAO to test out and fine-tune fundraising strategies, grantmaking, co-ordination, scaling, decentralization and other critical elements. There is no fixed duration for this phase. When a reasonable degree of smooth operations has been achieved, then the third cohort of DAO members will be onboarded to kickstart Phase 3.

Phase 3 (Consolidation phase):

This phase begins with the onboarding of the third cohort of members through the sale of 10,000 NFTs (ideally one NFT per member). At this point, we expect the total number of DAO members to be around 15,000 (182 + 5555 + 10,000 - {allowance for those who own more than one NFT}).
After this third sale, new memberships in the DAO through NFT sales will be put on hold, but a wider/outer community of non-NFT holders will be nurtured around the core DAO community to form a secondary community. From these non-NFT holders, dedicated ones will, on occasion, be offered free membership NFTs to become bonafide DAO members.

Governance and Circles

Ideally each member only needs to own one NFT which acts as their membership pass and gives voting ability. I NFT = 1 vote.

In the DAO, every member is equal but may align (or be grouped under) various independent groupings (or circles) which are saddled with varying duties and levels of responsibility and governance.

There are three types of circles viz:

Teams
Councils
Guilds

Additionally, circles may be further broken down into committees (which are temporary groups of persons set up to execute a specific time-limited project or complex task). Committees are meant to be dissolved after they conclude the project or task for which they were created (unless there is a need for their continued existence).

Circles meet and collaborate through online platforms like Discord, Notion, Slack, Gather.town etc (just like a remote-first company). Some of the platforms would be “token-gated” to allow access only to the DAO’s NFT holders.

Circles operate with a large degree of independence and autonomy and receive their own budget allotment from the main DAO budget. Spending from a circle’s budget would only require the approval of the circle’s members.

Circles have full agency and freedom to set their own goals, roadmaps and strategies for executing their responsibilities as long as they align with the overall mission, vision, roadmaps, targets and policies of the DAO.

They are empowered to make most of their internal decisions through consensus of (or voting by) only the given circle’s members instead of the entire DAO membership.

These internal decisions include matters affecting only the circle or relating to their area of expertise (or the execution of their core duties and responsibilities).

However, key decisions such as policy changes, grants (above DAO-determined thresholds), budgetary allocation to circles and a host of others must be reviewed and approved via majority vote by a quorum of DAO members.

In my framework, some of these circles have been designed (on purpose) to overlap with each other so as to improve co-ordination, redundancy, information flow, collaboration and cross-pollination of ideas within the DAO.

DAO Members are not restricted to being part of only a single circle but may be participants in multiple circles depending on their skills, interests or roles within the DAO.

The structure and composition of the various circles helps to echo and amplify individual voices and opinions at the highest levels such that every interest in the DAO is well represented.

Some of these circles also serve as checks and balances for each other, ensuring that no single person, group, circle or interest becomes too influential or too powerful within the DAO.

Teams meet virtually and asynchronously, collaborating actively in a continuous stream on a daily basis while most Councils and Guilds meet less frequently and are slightly less active.

Most of the co-ordination, communication and collaboration within the DAO will be virtual and carried out asynchronously online (unless the situation permits or requires a real-time meeting or event such as in the case of community calls or 1-on-1s).

Real-time (i.e. synchronous) meetings are generally meant for emergencies, strategizing, resolving disputes and conflicts, ironing out policies, developing roadmaps and OKRs, accessing progress, discussing high level issues and staying updated.

Here is a list of the main classes of circles followed by a description of each of them in descending order of their governance responsibility:

Guidance Council (or GC)
Expanded Guidance Council (or EGC)
Advisors
Council of Commons (or CoC)
Leaders Guild
Teams, other councils and other guilds

Level 1: Guidance Council (or GC):

This is the highest circle of governance and it comprises the Founding Team and the first cohort of DAO members a.k.a the O.Gs (i.e buyers/holders of the NFTs that will be auctioned in the coming days).
The most important duty of the Guidance Council is to steer the DAO, propose policy directions, review overall performance and provide guidance at the highest level to ensure that the DAO does not stray from its mission, vision and policies.
They are the chief custodians and guardians of the vision and also help to resolve any conflicts, disputes or controversies that can not be resolved at lower levels of governance.
At the onset they will work together to flesh out DAO policies and processes during the 2-3 month setup phase which begins after the upcoming NFT auctions (more details about this in later updates).
The GC is ultimately answerable to the entirety of DAO members and any GC member may be replaced by a DAO-wide majority vote. All major decisions by the GC are also to be approved by the entire DAO through voting.
In emergency situations, the Guidance Council is also empowered to take key decisions on behalf of the DAO if time will not permit such decisions to go through the normal discussion/voting process.

Level 2: Expanded Guidance Council (or EGC):

The Expanded Guidance Council (EGC) is the second highest level of leadership of the DAO, one level below the Guidance Council (GC). It serves as a bridge between lower levels of governance and higher levels of governance. It also makes policy recommendations, resolves high level disputes and acts as a think-tank for (and check on the powers of) the GC amongst other duties.

It comprises:

All members of the Guidance Council
All circle leaders
All DAO advisors
All members of the Council of Commons (which is made up of 30 elected representatives from the entire DAO)

Level 3: Advisors:

A group of non-voting external advisors of upstanding character and substantial knowledge of (or experience in) EA causes, philanthropy or grantmaking (may also include voting DAO members).

Level 4: Council of Commons (or CoC):

The Council of Commons (CoC) is meant to be a representation of the entirety of DAO members (minus the GC). Its function includes acting as the voice of the DAO “common folk” (i.e regular DAO members outside of the leadership cadre) and a check/balance for the GC, EGC and circle Leaders. It is composed of 30 elected representatives from the entire DAO (minus circle leaders and members of the GC).

Level 5: Leaders Guild

Comprises all circle leaders. The primary purpose of this guild is to enhance cross-collaboration, co-ordination and information flow among the various circles.

Level 6: Teams, other Councils and other Guilds

These are the foundational elements of the DAO structure. Teams handle the lowest level activities and functions required for the DAO to achieve its goals while other councils and guilds offer a way for decision making, cross-co-ordination and thorough cross-pollination of ideas and opinions across various views, interests and governance levels in the DAO.

Special Teams

Among the teams, there are three special teams: Meta Team, Emotions Team and Red Team.

The Meta Team co-ordinates the smooth flow of information, resources and collaboration among all the circles. They fill in wherever there are leadership gaps and temporarily plug any loopholes in co-ordination and governance until a permanent fix is found. They are like the blood vessels and nerves of the DAO and help to keep it flexible, resilient and in sync.
The Emotions Team are analogous to a community health mechanism that deals with personal or private issues, emotional stuff, mental/physical health, wellness and interpersonal relationships etc
The Red Team are the “red-pillers” and whistleblowers, criticising and calling out irregularities, deviations from the accepted rules and norms and putting a check on Leadership and individual members who break the DAO policies or code of ethics.

The Red Team has a special elevated status because of the role it plays as a watchdog and a check on leadership by way of its mandate as an unbiased critic and “red-pill” institution within the DAO (and even the wider EA movement).

A complete list of all the Teams and their responsibilities will be provided in an upcoming update.

Following is a pictorial representation of the proposed governance (pseudo)-hierarchical structure. Notice that governance flows mostly from the bottom to the top (as indicated by the direction of the arrows) rather than top to bottom; and the Guidance Council (GC) is ultimately answerable to all DAO members.

Although it is represented as a top-down hierarchical structure in the diagram, this is just a 2-dimensional representation and does not imply strict top-down control and governance (that’s why I labelled it a pseudo-hierarchy).

In reality, it’s more like a flatter 3-d structure where each element has roughly equal powers but varying degrees (or levels) of responsibility.

No single element (i.e circle) has 100% autonomy to govern itself to the exclusion of the rest of the DAO, rather, every circle is ultimately subject to the control of the entire community of DAO members.

The actual structure of the DAO is close to that of a Holarchy as shown in the following diagram:

Structure of a holarchy (Image Source: Sketch Bubble)

What is a Holarchy?

The structure and relationship between circles in my framework was partly inspired by multi-agent systems and by (but not identical to) a form of governance known as Holarchy or Holacracy.

According to Wikipedia “A holarchy is a connection between holons, where a holon is both a part and a whole...

...Holarchy is commonly referred to as a form of hierarchy, however, hierarchy, by its definition, has both an absolute top and bottom. But this is not logically possible in a holon, as it is both a whole and a part.

The “hierarchical relationship” between holons at different levels can just as meaningfully be described with terms like “in and out”, as they can with “up and down” or “left and right”; perhaps more generally, one can say that holons at one level are “made up of, or make up” the holons or parts of another level.

This can be demonstrated in the holarchic relationship (subatomic particles ↔ atoms ↔ molecules ↔ macromolecules ↔ organelles ↔ cells ↔ tissues ↔ organs ↔ organisms ↔ communities ↔ societies) where each holon is a “level” of organization, and all are ultimately descriptive of the same set (e.g., a particular collection of matter). The top can be a bottom, a bottom can be a top, and, like a fractal, the patterns evident at one level can be similar to those at another.”

Metaphorically Speaking...

Here is a useful metaphor that you may employ in visualizing the DAO structure:

Picture it as a very intelligent, powerful and resilient meta-organism where:

The Councils and Guilds are the skeleton
Regular Teams (minus Meta, Red and Emotions) are the organs, tissues and limbs
Meta Team are the blood vessels, red blood cells and nerves
Red Team are the white blood cells (fighting diseases)
Emotions Team is the heart
The entirety of DAO members make up the brain (a compound brain where all the component brains are working in perfect synchrony and harmony to surface a sort of hive-like intelligence; a superintelligent hive mind if you will)

My Role as Lead Founder / OG 1

At the onset, I will supervise, co-lead or play an active role in the various circles so as to set the ball rolling and ensure that things are correctly laid out and set up to proceed (with minimal need for my direct input) according to the vision and framework I have developed.

In essence I shall play the role of a sort of benevolent dictator (maybe even doing a wee bit of micro-managing) for the first few weeks and months of the DAO’s existence. This is to ensure that the basic foundations are properly laid out according to the given framework.

Gradually I will reduce my powers and begin to step back from many active duties. Doing this will create opportunities for other DAO members to take on more responsibilities and step up to leadership roles thus paving way for new leaders to emerge organically from the community.

I plan to drastically reduce my direct involvement, powers and influence over the DAO’s affairs when we raise our first $1 Billion

Eventually, I shall relinquish most of my power and influence to focus more on watching over the meta co-ordination and governance structures, thus essentially reducing my role to being that of a guardian of sorts (the chief custodian of the grand vision), gently nudging the DAO back on the right path whenever it shows any sign of straying from the agreed framework and consensus.

The Main Duties and Responsibilities of DAO Members:

DAO members are not under any obligation to participate actively in the DAO’s activities. However, all DAO members are strongly encouraged (where possible and/or convenient) to try to do all or some of the following:

Actively seek out and talk to donors within and around your network about the DAO, upcoming fundraising activities and why they should begin donating once or periodically to the DAO
Participate in the various events and activities of the DAO
Contribute to various discussions on the DAO’s collaboration platforms
Debate and vote on proposals
Suggest projects (or submit proposals) if you have any ideas
Reach out to, recommend or refer other EAs who aren’t DAO members but who might have interesting and impactful projects that need funding
(Where possible), organize your own (formal or informal) meetings with donors to pitch the DAO to them
Consider donating regularly to the DAO from your earnings (start with any percentage, this is better than 0%). Taking this to the extreme, also consider earning to give if it suits you (remember, according to 80,000 hours, “Earning to give is not just for people who want to work in high paying industries. Anyone who aims to earn more in order to give more is on this path.”)
Join other DAO members in fundraising drives and other DAO events
Volunteer (and/or provide assistance if needed) during virtual (or real-life) DAO events (happening near you)
Participate in Teams: One of the first things you should do after joining is to go through the teams’ descriptions and figure out where and how you can to contribute. Join any team that best fits your skills or interests. You may join more than one team
When you join a new team, go ahead and introduce yourself, then identify opportunities where you could contribute from the teams open tasks, then indicate your interest in contributing
Participate in the various events and activities of your team(s)
Take every opportunity to promote the DAO, both IRL and online/on social media. Regularly share DAO content on social media. Creators could even create their own DAO-related content

Proposed Fundraising Strategies

The initial funds will be raised through sales of Non Fungible Tokens (NFTs).

These NFTs will also act as membership passes to the DAO’s private communication, collaboration and voting platforms. Ideally one member per NFT.

In addition to NFT sales, some of the other fundraising strategies that shall be employed or experimented with include:

Conventional fundraising events like fundraising dinners/concerts/charity balls etc held once every quarter (preceded by two weeks of dedicated viral fundraising activities)
“Fundraising fortnights” which are two week sprints (done once every month or every two months) dedicated to widespread viral fundraising drives
Members leveraging their personal and professional networks to reach out to prospective donors and pitch the DAO to them
Individual members and small teams organizing micro-fundraising events, activities and activations
“Decentralized crowdfunding” where individual members initiate crowdfunding campaigns on their own to raise funds for the DAO
Developing the project’s Intellectual Property into revenue-generating books, comics, cartoons, movies, merchandise etc
Developing DAO-owned fundraising apps and low-maintenance charity entrepreneurship online platforms, startups, SAAS applications etc
Continuously reaching out and encouraging donors to commit to regular/repeat donations
DAO members brainstorming and exploring various other fundraising ideas.
Donations from DAO members

More About the NFTs

There Shall be Three Main NFT Sales/Auctions.

I am starting off with the first NFT Collection of 222 items. (An NFT collection is a group of related NFTs). After this first collection auction, there will be two more major collections sales.
The second collection will be the main collection of 5,555 NFTs (This is not live and not ready yet, our timeline suggests about 2 to 3 months after the first auction is concluded. It will be developed during the 2 to 3 months setup phase of the DAO)
The third collection will consist of 15,777 NFTs out of which 10,000 will be sold and the remaining 5,777 distributed free to holders of NFTs from the previous two collections. This third collection will also be the flagship profile pic (PFP) NFT collection of the project.

The First Collection (a.k.a the Pre-Genesis O.G Collection) will have only 222 NFTs out of which only 172 will be auctioned. This auction will be held online in a few days time and is meant to obtain the first cohort of members for the DAO.

It is also meant to raise funds that will enable me to work on the project full time. Part of these funds will also be used to offset any costs incurred by the DAO during the setup phase. Part of it will also be used to support my organization (EffectiveCauses) which is the originator (and incubator) of this DAO idea.

Who Should Buy from This first Collection?

Anybody interested in EA is welcome, but at this stage it would be nice to have more people who fit into any of the following categories:

You like to be a part of the DAO’s Guidance Council (which is the highest level of governance)
You want to contribute intellectually in shaping the direction of the Project
You want to support this project financially in it’s early stage
You are passionate about fixing EA’s “problems” (and even have ideas on how to fix them)
You want to contribute: time, expertise, network or influence to creating effective impact in the world
You want to help grow and strengthen the effective altruism movement
You have experience participating actively in other DAOs
You have skills and experience in organization building, corporate/non-profit law and business process engineering
You have skills and experience in corporate or non-profit law
You have skills and experience incubating or accelerating startups
You like NFTs / Web3
You want to be known as an OG of the DAO (“OG” is a common term in the crypto world that is used to describe the earliest supporters/adopters of a project. Being an OG comes with significant bragging rights, recognition and respect in the community)

Auction Date and Pricing

The NFTs will be minted on a climate friendly blockchain (Polygon). They will be auctioned online via a virtual Dutch Auction on the OpenSea NFT marketplace.

In a dutch auction, the item starts at a relatively high price and is gradually reduced over the course of a given period until it gets to a minimum value.

Anyone may buy when it gets to the price they are willing to pay but the catch is that the more you delay, the more the likelihood that somebody else will buy the one you are targeting before you do. So there’s a need to act fast during the auction so as not to miss out.

The auction will begin at 12:01 AM UTC on the 27th of February 2023 and will last for about 72 hours, ending at 11:59 PM UTC on the 1st of March 2023

You may follow the project on Twitter and turn on notifications if you wish to be notified of updates and when the auction has started. Twitter: @Effective_DAO

Pricing

The starting price for each NFT will be 6,000 MATIC (about $8,000 USD at the time of writing) and the ending price will be 300 MATIC (about $400 USD at the time of writing).

This means that over the course of the duration of the auction (about 72 hours), the price of each NFT will be reduced at a uniform rate from 6,000 MATIC at the start to 300 MATIC at the end.

MATIC is the native token of the Polygon blockchain on which the NFTs are minted. You can see the current dollar value of 1 MATIC here.

Note: This price MAY be adjusted before the start of the auction to compensate for changes in the value of MATIC but you can generally expect the start and end prices to be equivalent to around $8,000 - $10,000 (Start) and $400 - $550 (End) so you should plan for this if you are interested in buying the NFT. You should also include $20 - $50 extra MATIC tokens to cover gas fees.

Can’t Wait for the Auction? Want Yours NOW?

You can actually purchase any one (or more) of the NFTs RIGHT NOW (i.e before the auction starts) but it would have to be at the maximum price of 6,000 MATIC.

The pros of getting yours right now are:

You are able to take your time to go through all the NFTs at your own pace and make your choice without the pressure of constrained time.
You get the exact NFT(s) you want without the pressure of having to contend with others during the auction.
You eliminate the possibility of not being able to buy during the auction due to the possible rush of buyers.

The only con is the price, so if you do not mind the price (you could actually see it as a way of supporting the project financially) then you may go ahead, you could even pay more for it if you are feeling really generous. If you will like to get one before the auction despite this con then please send me a DM. But if you have general questions you may leave them in the comments.

Not Knowledgeable About Crypto?

I understand that a number of persons may not be too familiar with the process of crypto transactions and buying NFTs on OpenSea. I could have included some links to resources but I decided against doing that because if you don’t know a lot about crypto stuff, it’s much better and safer to get someone who knows about it to assist you.

An APPEAL to Funders and Donors

Even if you may not have the time or are unable to participate for some reason, please consider sponsoring some person(s) who might be very motivated and willing to participate in the DAO but don’t have the financial resources to buy an OG NFT during the auction.

Here are some of the things you could do to support us:

Buy the NFT for yourself if you will like to become a DAO member
Buy for others who you feel will be able to contribute impactfully
Donate directly to EffectiveCauses (my organization which is behind the DAO project)
Donate directly to the DAO

Note that at this time the organizations are not yet registered so any donations are not tax-deductible for now, but please don’t let that dissuade you from helping EA become better,

Distribution of Raised Funds from the First Auction

The funds from this first auction of 172 NFTs are meant to be a kind of pre-seed funding for the project. Assuming all 172 are bought at the lowest price, I expect to raise at least $75,000 (but this will be most likely higher because of the auction style, assuming that all of them are bought).

The primary purpose of the first $80K - $100K that will be raised is to provide funds that would enable me to take a break from my current day job (or quit entirely) to focus full-time on working on the DAO for the next 9 to 12 months.

If I can raise above $100K (which is quite likely if all NFTs are bought), the excess will be split equally between the DAO and EffectiveCauses (my own organization ) to be used to set up both organizations.

EffectiveCauses Organization is (as mentioned in my previous update) a think tank / lab for generating impactful EA-related ideas, raising the funds for the ideas and executing and/or incubating them.

It is an EA-aligned organization being set up by me and I have a handful of potential interns already indicating strong interest. Currently we meet once or twice a week IRL or virtually to discuss EA stuff and project ideas.

This DAO idea is just one out of the numerous ideas we have come up with so far. There are plenty more where this came from and I strongly believe that the organization can create significant impact with appropriate funding.

The long term vision is to evolve into a kind of regional hub to provide a strong anchor and support base for EA groups and activities in Sub Saharan Africa and a base from where the movement can expand into other parts of the continent.

Before now I was at the stage of seeking funding to properly set up the organization. This funding would enable us rent and set up an office space, hire developers and permanent staff and kickstart some of the other projects we have come up with.

The amount that goes to EffectiveCauses from this first NFT auction will be capped at $400K and any extra goes to the DAO.

Proposed Distribution of Further Raised Funds

While the first NFT collection sales are proposed to be distributed as described in the preceding section, any subsequent funds raised from the second NFT sales onwards shall be distributed according to the formula proposed in this section. (This proposed formula is subject to further debate and ratification by the DAO)

In other words, funds from the second NFT collection sales (and all subsequent fund raises) shall be distributed according to the proposed percentages below.

80% - MAIN DAO Charity fund. This is exclusively meant for issuing as grants, donations and other charitable interventions.
8% - for the DAO’s organizational running costs e.g admin costs, legal, team budgets, misc. overhead costs, marketing/PR, remuneration / compensation etc
1.5% - as backup / emergency / reserve funds for the DAO (Limited to a maximum amount above which any excess is added to the main DAO Charity fund)
4% - to support EffectiveCauses Organization (the DAO’s founding / incubating organization)
2% - goes to dedicated funding support for the DAO’s fundraising events and activities
2% - for developing the Project’s Lore (e.g the NFT characters) into valuable, revenue generating intellectual property (IP) (e.g for use in novels and stories, books, games, comics, animated and live-action movies, AR/VR/xR experiences, merch etc). The long term vision for the Lore is to turn its IP into a major additional source of funding inflow for the DAO (more on the Lore in my next update)
1.5% - for paying for kidney dialysis and kidney transplants for poor people in Low and Middle Income Countries (adding this to the list is probably debatable / controversial but it is a philanthropic cause area that I care about very very very very very very much, remember the mission also includes some aspects of general philanthropy)
1% - For developing ecosystem apps and dApps e.g the NFT minting dApp, a donation app with automatic processing of recurring donor pledges, a highly scalable, decentralized donation+fundraising web3 app to fully decentralize EA fundraising and grantmaking globally (similar to kickstarter or gofundme for EA projects), a small business loan platform like kiva.org. Also to create other revenue generating social enterprises, for-profit utility apps and platforms / ecosystem development apps.

Proposed Distribution of the MAIN DAO Charity Fund

As indicated in the preceding section, The MAIN DAO Charity fund is 80% of all total funds raised from the 2nd NFT collection onwards. This fund is set aside exclusively for the DAO to give out as grants or direct donations to other projects and organizations.

In this section I propose a sharing formula for how to distribute this MAIN DAO Charity fund but first some things to note:

The DAO’s mission is to both raise for EA and other charitable causes (but majorly for EA).
Therefore, some causes mentioned below may not fall under EA’s core cause areas of interest and may be highly debatable from a rigorous epistemic standpoint by staunch EAs, and honestly I am not confident that I can offer convincing arguments for all of them with respect to epistemics.
But coming from someone who has lived all his life in an LMIC, I consider them of great importance (and quite neglected especially in LMICs) hence their inclusion (mostly under the general charitable causes).
I am however open to further discussion with DAO members on the merits of having them included in the list but I’m very strongly in favour of adopting this list especially since it leaves 45% unallocated for the DAO to decide how to disburse.
Even though some items might differ from the known “official” EA priorities list, I am deferring to the broader spirit of EA which is doing good effectively.
In light of this, I’m of the opinion that the most important thing in this context is to ensure that whatever interventions and grants the DAO funds in these non-core areas are done in an effective, efficient and evidence-led manner with measurable and significant net-positive impact.
Lastly, note that the percentages in this section sum up to 100%. This is 100% of the MAIN DAO Charity Fund (which is 80% of the total raised funds), so don’t get it mixed up. (For example, 45% below refers to 45% of the MAIN DAO Charity fund, that is, 45% of 80% of the total raised funds.)

And, here’s the proposed distribution formula:

45% - To be decided by the DAO, may be used to increase the funding for specific categories already included below
15% - Donations to GiveWell recommended charities
10% - AI risks/Alignment, Longtermism, Biorisks, EA Careers and Cause Prioritization
5% - Climate change tail risks (aid, research, advocacy) and natural disasters (aid)
4% - Aid for trafficked and internally displaced persons (from war, terrorism, violence etc)
2% - Micro grants ($800 - $3,000) in any category (mostly for disbursement by Teams and the Scholars Guild. More on the teams and guilds in future updates)
2% - Nano grants (Less than $800) in any category (mostly for disbursement by Teams and the Scholars Guild.)
2% - Animal welfare
2% - “Rebooting” civilization after a global catastrophe
2% - Micro business loans for needy people in LMICs (like kiva.org but with initial loans supplied by the DAO)
1% - EA community building and digital infrastructure
10% - Other charitable causes in LMICs including:
- Infant mortality + maternal health care (especially in remote areas)
- Women’s reproductive health—
Support for (poor) widows and orphans—
Support for disabled/differently-abled persons—
PLWAs (people living with AIDS)
- Primary health care in remote areas—
Water wells and solar-powered boreholes in remote settlements in LMICs—
Legal representation for wrongfully (and non-politically) imprisoned persons in LMICs—
Any other general charitable causes decided by the DAO

So What Next? Are You Interested?

Interested in this? Like to learn more or be a part of this? Do these:

Prepare for the auction holding online on OpenSea from 12:01 AM UTC on 27 February 2023 to 11:59 PM UTC on 1 March 2023.
Follow the Project’s account on Twitter: @Effective_DAO
Visit the auction link at https://bit.ly/altruistwarriors
If you do purchase one, please send a DM here or on Twitter so that we can send you an invite to the DAO’s Private Discord.

Support Us

You can also support us by providing feedback and ideas in the comments and spreading the word about the Project to others in your network who you believe might be interested. You can also donate crypto to my organization (EffectiveCauses) or to the DAO. (Please DM me for this).

Share this (Good) News

Please share this post to all EA groups, communities and networks and to your social media friends and followers. Thanks!

Metaculus Anyone?

I would really love if someone could create some metaculus predictions to see if (and/or when) we will be able to meet our goal of raising at least $1 Billion every 12 months. Or if we can even get the DAO up and running at all!

Don’t Miss the Next Update