How to Create a DAO
These 6 steps explain how you can create a DAO.
We’ve worked with thousands of people launching DAOs (aka decentralized autonomous organizations) and have learned alongside them every step of the way.
Here are 6 things to consider when creating a DAO.
- Identify Your Mission
Define what the project is and what goals you’re trying to achieve.
Key Questions to Ask at this Stage
- What are we trying to achieve?
- How will we track progress?
- Does a DAO make sense for my project?
2. Form the Core Team
Bring together individuals who resonate with the mission and have the enthusiasm and bandwidth to be involved with the project.
Key Questions to Ask at this Stage
- What do we hope to accomplish?
- What skills do we need on the team?
- Who could help us take this to the next level?
3. Explore Legal Requirements
We recommend consulting with legal counsel before launching your project. Upstream is happy to connect you with independent legal counsel to discuss before DAO creation.
Key Questions to Ask at this Stage
- Do you need to wrap the DAO in a legal structure?
- If so, which legal entity makes the most sense?
- If an investment club, what parameters should you follow to be compliant with SEC guidance?
4. Decide on DAO Tooling
Choose the tool that works best for your project’s needs. Upstream is a popular choice for its easy-to-use interface, best-in-class security, and mobile app.
Key Questions to Ask at this Stage
- What is the easiest-to-use tool for our DAO members?
- Which tool is on mobile?
- Which tool uses Gnosis multisig wallet?
5. Define Roles and Responsibilities
Meet with your team to define who will take on what roles to accomplish your mission.
Key Questions to Ask at this Stage
- Who will be signators on the multi-sig wallet?
- Who is in charge of managing the community and answering questions for token holders?
- Who needs to be consulted, informed, and posted on what decisions?
6. Launch Your DAO
When the DAO is set up, the smart contract will be live and you can begin to take in funds. We recommend you set up your legal structure, if necessary, before proceeding with this step.
On Upstream you’re able to take polls, create proposals, and vote on decisions. For governance, you can choose to mint tokens for DAO members in return for contributing ETH, or use a token or NFT as the “entry pass” to the DAO.
The more active the community is, the more that gets accomplished. We recommend kicking off with an energizing townhall to build momentum.
Key Questions to Ask at this Stage
- How much do we hope to raise to accomplish our goals?
- What should the minimum contribution be?
- How will we help our members get started?
Have any questions? Write to us at [email protected].
If you want to create a DAO, click here to get started. Want to try out the demo? Click here to explore.
