[DAO:a779859] Should we restructure the way our DAO operates?

by 0x511a22cdd2c4ee8357bb02df2578037ffe8a4d8d (ginoct)

The Decentraland DAO has been operating for over four years, and while we’ve celebrated many successes, our operational structure is far from being sustainable. The current state of the DAO is inefficient: decision-making is slow, funds are not always safeguarded, and we lack a cohesive long-term vision. Short-term wins and opportunistic actions have led to unnecessary spending, misalignment with the Decentraland Foundation, and, in some cases, exploitation of resources.

It’s time for a reset—a comprehensive restructuring of the DAO’s operations that allows for better execution, faster decision-making, and greater accountability. This poll is a signal to the community that we must start this process now.

We have published a series of forum posts to gather early feedback, in case this poll passes. These posts outline the content of each draft proposal that could emerge from this initiative, focusing on key topics to guide the restructuring efforts. They are designed to foster constructive dialogue and help achieve consensus on the critical issues we need to address.

  1. RFC - “A shared mission for the Decentraland DAO” Draft Proposal
  2. RFC - “Proposal for Establishing a Council for Decentraland DAO” Draft Proposal
  3. RFC - “Establishing an Executive Arm to Improve DAO Operations” Draft Proposal
  4. RFC - “Deprecation of the Current Decentraland DAO Grants program and Bidding and Tendering process” Draft Proposal

This proposal takes inspiration from discussions held at the Regenesis DAO Summit and insights from Maraoz’s notes. It represents a crucial first step toward reforming the DAO to ensure its sustainability, security, and success.

  • Yes, I support this idea
  • No, I don’t agree with this
  • Invalid question/options

Vote on this proposal on the Decentraland DAO

View this proposal on Snapshot

1 Like

Voting yes, a much needed change for the DCL DAO. It is clear to see that the current path the DAO has been on the past couple of years is not optimal, specially with how much of the DAOs spending is going to waste and not bringing back substantial long term benefits to DCLs platform. Hopefully with the discussed restructuring, we will see more positive growth and development.

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Should you buyback my VP first? :grinning:

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Hi People ! First of all, I want to extend my thanks to Community and DCL Founders who are still here and working hard to resolve the DAO’s core issues - a big shout out to Maraoz, Yemel, and Esteban for your dedication.

I’d like to share some thoughts on the current proposal:

  1. I believe the current direction is becoming too centralized, which contradicts the core concept of a DCL DAO where “decentralization” is fundamental to its name and identity. This shift undermines the essential principles of decentralized governance.

  2. The central issue of voting power being concentrated in the hands of whales has not been addressed. This should be the first priority because, without solving this, we will continually face the same challenges. Whales will impose vetoes on decisions they disagree with, perpetuating the imbalance. While there has been talk of a hybrid reputation system, I have yet to see concrete steps in this direction.

  3. Any restructuring of the DAO must include clear mechanisms for accountability. Currently, there is a lack of accountability, as core units and the DAO committee often fail to adhere to binding governance proposals and established procedures. So far, there have been no instances of core units or committee members being removed, likely due to personal relationships, fear of repercussions, and the community lacking sufficient VP to take action. If we proceed with establishing a centralized council and operational arm without addressing the VP imbalance, I believe the situation could worsen.

Additionally, the proposal does not clearly define term limits for council members. Without these limits, council members could remain in power indefinitely - similar to the current situation with the DAO Committee, where we’ve seen abuses of power.

  1. One of key aspects missing from the RFC proposals is a clear requirement for oparm and council members to regularly engage with the Community to understand its sentiment. It is crucial that decision-makers conduct sessions or hold open forums to gather community feedback.

  2. DAO’s Discord Toxicity also requires attention. At present, there is a DAO committee member who bans and unbans members at their own discretion, ignoring the community-approved code of ethics. This kind of unilateral control should end to ensure fair and transparent governance discussions.

  3. We already have the Decentraland Foundation functioning as a traditional centralized non-profit entity that manages the DCL client. Why not consider transferring part of the DAO’s treasury to the Foundation to support critical initiatives while continue freezing grants until the DAO resolves its core issues and becomes autonomous, fair, accountable, and, most importantly - decentralized.

Also, friendly reminder from Decentraland Proposal: DAO 2.0 on DAO Committee :

This is an interim solution.

The combination of a committee and off-chain votes would be used only until a more robust second layer solution is created or until gas fees become lower and less volatile due to advances in Ethereum. At that point, Decentraland’s DAO may return to full on-chain governance. The aim of this interim solution is, indeed, to prevent certain current technical frictions from degrading the decentralized governance of the DAO

P.S. Technology (Protocol) and Governance are distinct aspects, and both must be decentralized to uphold the true spirit of decentralization.

3 Likes

What has the DAO turned into if its officials are now proposing to implement a traditional web 2.0 governance model !!!

Absolutely YES.

We cannot expect different results by always doing the same thing.

We have been stuck for a long time, MANA is worth less and less and a point of no return is approaching where the DAO may become financially unsustainable.

A change of direction is necessary.

1 Like

This means more focus and less bureaucracy, critical factors for projects when adoption is still low.

I vote yes, although I’d love to see smaller grants still owned by the community choice (e,g. 100$-5,000$) in order to keep decentralized funding alive.

2 Likes

This was something we talked about during the summit also ^

Voting Yes.

Stop wasting time.
Stop wasting money.

2 Likes

With the understanding that no solution will be perfect, and that things can always be fixed along the way, I voted yes for the reasons previously outlined in this post: DCL DAO: Regenesis Summit Summary - #7 by Unknower

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Jesus, folks who got free trips are now scrambling to form a centralized group of IRL unemployed people.

Voting No

Stop wasting time on centralized IRL events focused solely on pets.
Stop spending money on giving free world tours to these unemployed “pets” (future position holders).

This is how the new council will be formed:

The current DAO is operated by the founders and high-position holders’ friends.

The MANA is dipping, so there’s a need to form something to get hold of the funds, as it’s too much to be wasted.

The best way is to just show that we are serious about the DAO and form a crappy organizational thing to show we are working on something.

GINO always says on all calls and spaces that “he doesn’t know what to do.” He and his fellow friends are just copying what other DAOs are doing.

The DAO needs pets to fill these positions so they can discuss and do what they want (all discussions on private calls among the new centralized DAO).

The VP lords will give VP to GINO’s proposed people (new centralized unit/squad).

The new landlords of the DAO will decide that only bootlickers and pets will be able to use the funds for themselves.

The current core VIPs are already on a very expensive payroll. Literally, a group of under 10 people on USD 1500 per person a month could handle any company/organization, but no, we need millions per year to run the DAO.

Whatever outcome these folks are suggesting will not change anything but will be a burden on the DAO, expense-wise. DAO means “people,” not a bunch of puppets under the core units and the founders. The platform currently has very few daily active users. The formation of this corrupt version of the DAO will not bring any positive change.

Literally I know each name that would be on this new council, Lets see how fast they all can burn whatever is left in the name of DECENTRALISATION.

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Voting No.

Stop wasting time.
Stop wasting money.
Stop laughing at users and investors.

1 Like

Voting no.

The DAO does not have any influence over the platform yet; therefore, we do not need a traditional organizational structure yet.

Quick recap - if the community / DAO wanted a new wearable category (which has happened), the DAO would have no way (currently) of implementing such change into the platform. The DAO can only build alternative clients on top of the sdk - which the sdk is solely managed by The Foundation.

I don’t see any DAO involvement in the implementation of the Exotic Category.

I’ve made comments explaining this point here

and here

5 Likes

Once again not that my opinions matter around here, but I’m voting invalid. I do not feel like my opinions were represented at this closed door summit. The biggest issue I stressed on before the summit was that we NEED to fix our broken voting structure, and was disappointed to hear that voting structure was not a main topic because its just “to hard” and instead seemed to push for a more centralized model.

Last Saturday @Canessa and I hosted our weekly Community Building Decentraland X Space that we have hosted for the last 120 weeks, where we engaged in some of the conversations that were had at the summit.

At timestamp: 1:12:25 @lastraum asked Gino if the Dao was going to be more like the Foundation in terms of structure, and a little further in the convo made a point that i agree with (timestamp 1:15:23) saying should we start calling ourselves the Decentraland operations company? because there is nothing Decentralized or autonomous about the conclusions that were made at the summit (this is me paraphrasing i encourage everyone to have a listen and hear it for themselves).

I was also disappoint that more people that actually attended the summit, did not engage in this conversation since they were the ones coming to these conclusions. In my opinion this centralized model has not been sold correctly to the people that actually use this platform, and we are creeping away from what we really strive to be.

I want to thank and I respect @ginoct @Unknower @Canessa @maryana @CheddarQueso (who attended the summit) for attending the space ,listening in ,commenting, as well as contributing in constructive conversations. To the rest of you, I invite you to actually engage in these conversations with the actual users and builders of the platform.

5 Likes

This summit has turned into a complete joke. Could you read between the lines, guys?

You can come back when you’ve figured out how to actually be decent politicians.

We don’t need Biden or Trump DCL version.

Responding to Dhingia’s Comment:

There are many assumptions being made here, and the choice of words used to describe the people who attended the summit, including myself, is unpleasant. Labeling the attendees as “pets” is uncalled for. During the summit, I had the pleasure of meeting people passionate about Decentraland and concerned about the sustainability of the DAO. Not everyone agreed on every idea, and there were conflicts during discussions, but they were all voiced and debated professionally without name-calling or insults. Your response here highlights exactly why in-person summits or meetups are important: emotions were expressed through professionalism and respect, even in disagreement.

Assumption #1: “The DAO will be operated by the founders and high-position holders’ friends.”

This is an assumption, as there has been no decision on who will operate the DAO. Meritocracy will be the foundation of the selection process, not asset holdings. Ultimately, the community will vote on who should be in the DAO Council.

Assumption #2: “Folks who got free trips are now scrambling to form a centralized group of IRL unemployed people.”

The “free trip” was extended to DCL Ambassadors, which you could have joined if you had applied. Many attendees were employed and brought diverse, practical, and constructive ideas on managing the DAO and its finances to ensure sustainability. If the plan was to form a centralized group, they wouldn’t need our voices or input—they could simply execute a takeover. While you may have your reasons for not attending, that doesn’t justify name-calling those who did.

Assumption #3: “The current core VIPs are already on a very expensive payroll. Literally, a group of under 10 people on USD 1500 per person a month could handle any company/organization, but no, we need millions per year to run the DAO.”

The Core Units’ total expense this year is $360,100—not in the millions, as you stated. However, I agree that salaries should be reviewed and pegged to living costs, especially when output doesn’t match the effort. The DAO should operate with a lean team of experienced individuals with clear KPIs, objectives, and goals.

Assumption #4: “I know each name that would be on this new council. Let’s see how fast they can burn whatever is left in the name of DECENTRALISATION.”

How can you know the names when none have been suggested or voted on? It seems you resist change, even when the DAO has spent millions empowering creators but still struggles to attract and retain users. You personally benefited from over $150,000 for two proposals, with the latter passed thanks to two users holding 5M VP. Without them, your proposal wouldn’t have passed. Given your concerns about decentralization, was your proposal passed through fair and distributed VP, or was it centralized, as two users swayed the outcome?

LordLike highlighted a crucial issue: “The central issue of voting power being concentrated in the hands of whales has not been addressed.” I agree that this needs addressing for fair progress. No system is perfect, but we must make changes to ensure long-term sustainability. Millions have been spent without accountability. This is why restructuring is necessary. We’ve spent enough on “experimentation” and “innovation,” and many who benefited financially have disappeared when the funds stopped. This shows that some were here primarily for financial gain without accountability, let alone dedicated or passionate about Decentraland or the community.

The formation of a Council aims to change this, ensuring that those operating the DAO align with its mission and vision. The Executive will be responsible for and accountable for every decision. I voted Yes because I believe change in structure and organization is necessary to sustain the DAO for the future, especially as we prepare for when the Foundation dissolves.

2 Likes

So, which is the last project we saw sustainable?

What this group did to make DCL better place?

Are those people educated enough to deserve this kind of salaries?

In summary:

Most of the people attending this summit are influenced by the treasury. Additionally, a large portion of the experts present are unemployed, struggling to find real-world jobs due to personal challenges such as ego and other mental health issues.

I may sound toxic, sorry about. Prove me I’m wrong.

2 Likes

Hi everyone (:

First of all, after days of debate, I’m glad to see that some users have reached a consensus on forming a more structured approach. While I understand that this move may seem like a shift toward centralization, I still believe it’s the right step for the sake of progress and efficiency. And no, this isn’t without precedent—other DAOs are already taking similar steps.

The advantages of such a structure would be clear in multiple areas. For example, if the DAO wanted to organize an event for a marketing campaign (e.g., Halloween), no one would take on the responsibility because: a) there isn’t a dedicated team for this, and b) the chances of achieving this through the grant system are slim, as most applicants tend to seek funding for personal projects rather than initiatives that benefit the platform as a whole. With a consistent, dedicated team, the possibility of hosting high-quality events more frequently becomes much more feasible.

This “experiences team” could also collaborate with other teams, like a potential “client team.” For instance, if modifications to the client were required for a special occasion (similar to when the Foundation organizes music festivals), the DAO could finally have the capacity to execute those changes.

Moreover, this new structure would enable us to expand the client team to better respond to community needs for new features and develop a more decentralized version of the platform. If you look at the Foundation’s approach with the new client, you’ll notice it leans towards a more centralized model, moving away from an open protocol by relying on private licenses and proprietary services. I understand why they’re doing this (for efficiency), but I still believe it’s our role to pull the rope toward decentralization, and currently, we aren’t doing enough in that regard.

Now, the second question that comes to mind is: how much oversight should this organization have, and what should be included in its scope?

At the summit, various models were proposed: some believe that the structure should reduce the DAO to its bare minimum (with most responsibilities transferred to the opco), while others want to maintain some of the DAO’s existing capabilities. Personally, I lean more toward the latter approach.

Decentraland is, at its core, a political platform. While this can sometimes be exhausting, it’s also what fuels the passion in our community: we feel like we’re part of something, and that our voices truly matter in the decision-making process. If we remove most of the governance mechanisms, the platform won’t feel the same.

Ideally, I would eliminate the mechanisms that allow the community to request funding for personal projects and instead focus solely on governance-related functions and critical aspects like the catalyst network or linked wearables.

So yeah, I agree with this proposal and I’m happy of how the summit went (thanks @ginoct and @Zino for the efforts being put here). If you have any suggestions or criticism, I’m open to hearing them, as long as they’re respectful.

Regards,
Tobik

1 Like