The first DAO I joined was BanklessDAO, dedicated to enabling a world with less reliance on banks and the extractive forces that drive them. Within the DAO, we created Bankless Consulting, one of the first Web3 consulting firms. Its success has been a testament to the power of collective action, bringing together the most brilliant minds from diverse fields to revolutionize the financial system. However, as with any revolutionary movement, we encountered challenges along the way. Despite experiencing numerous highs, including the successful completion of more than thirty projects, our resilience was tested during the downturn in the Web3 market. The shifting demand and fluctuating opportunities in the ecosystem required us to be adaptable. But our steadfast belief in the core values of Web3 and its promise of a better, more decentralized future kept us going.
Bankless Consulting was not the only project I contributed to. I also joined another DAO, Index Coop, an organization designed to make crypto investing simpler. Index Coop held tokens that belonged to other DAOs, creating a pool of tokens similar to the S&P 500 index. During my eight-month tenure, I experienced a roller coaster of learning and immersion into the intricate world of decentralized governance. It was more than just a job; it was also a foray into a
realm where empowering community-driven decision-making was more important than financial gains.
Of course, early in my DAO journey, I encountered Gitcoin. Having been involved in open-source software, I understood how difficult it is to secure funding for such projects, and I was eager to support Gitcoin's vision. I strongly believed in its mission of promoting "public goods" by collectively financing and supporting projects that benefited the wider community, such as open-source software, educational resources, and civic projects.
At last, with this knowledge in hand, I left the corporate world for good and set sail for a new frontier. I didn't really have a plan; I just knew that I wanted to work in this new and vibrant ecosystem of DAOs. It was a way of revisiting my father's vision of bringing a small piece of Italy to our hometown. I knew it was his heart driving that decision, and the same thing was now happening to me: it was my destiny to work in this ecosystem that resembled community
businesses rather than having a corner office in one of the New York high-rises. And now I want to share my vision with you.
PART ONE
DAOs 101
CHAPTER ONE
What Is a DAO?
Let's start with the basics. DAO stands for "decentralized autonomous organization." You can think of DAOs as digitally native vehicles for organizing a network of humans toward a common goal. Compared with traditional organizations, they have an internal economic model already built in thanks to blockchain, allowing for smooth financial coordination. DAO membership is collective, with decisions made from the bottom up rather than the top down.
The rules of a DAO are embedded in the code itself on a blockchain—a decentralized, incorruptible digital ledger that securely encrypts data and can execute smart contracts—eliminating the need for a central governing body. A blockchain records transactions across many computers in a way that prevents any future alteration of the record without the consensus of the network. This technology is enabled by a peer-to-peer network, where participants can directly interact without needing trusted intermediaries (such as banks). It provides transparency, security, and immutability without a centralized authority, which is why it's the backbone of crypto assets like BTC and ETH, or DAO assets like GTC. It even has applications beyond financial transactions—for example, Web3 social networks allow users to manage their own identity, instead of being beholden to giant technology companies.
Just like how traditional organizations have a bank account, many DAOs have a shared treasury. And just like most traditional organizations are incorporated in a legal jurisdiction, DAOs are incorporated onchain. When a dispute arises among members of a traditional organization, it is settled in court. When a dispute arises among members of a DAO, it is settled onchain. In their most simple form, DAOs can be thought of as a "group chat with a bank account." This is a phrase coined by investor Cooper Turley, and because of its simplicity, it has since gone viral.
Many DAOs have "one commandment": something they believe is wrong with the world that they aim to change by rallying people from around the globe. This is usually a meme or a phrase that can be concisely stated and shared by its members. For example, Gitcoin wants to "fund what matters," creating a space for people who believe in backing causes that enhance the world, even if there is no direct financial benefit to them. Similarly, MakerDAO is on a mission to construct the first unbiased currency, appealing to those who feel that the current financial system is unfair and wish to reform it.
Yet it's crucial to recognize that DAOs are not only about addressing what's wrong or deficient but are equally about pioneering something fresh and innovative. They leverage the borderless nature of digital coordination, assembling a diverse group of people across the world to not only facilitate change but also to give birth to new, vibrant initiatives and entities that reflect their collective ideas and skills. This union of alteration and creation is central to a DAO, enabling it to navigate uncharted territories and conceive radical possibilities in a decentralized, internet-native world. Not only can they be accessed from anywhere like traditional websites, they also can be governed from anywhere, meaning that someone across the world can be your partner in your DAO, putting everyone on the same footing.
This excerpt is from the hardcover edition.
