Hello, community,
We would like to share the drafts of each proposal following the discussions we had at the DCL DAO: Regenesis Summit in Lisbon. These drafts are being released at the same time as the poll to kickstart the governance process, which is now open for voting.
Our goal is to gather feedback and ensure that everyone has a clear understanding of the plan as it develops. We encourage you to share your thoughts during the voting period of the poll, as your input is crucial in shaping the future of the DAO.
Title
Establishing an Executive Arm to improve DAO Operations
Summary
This proposal aims to establish an Executive Arm for Decentraland DAO to manage operations and resource allocation under the oversight of a DAO Council. The DAO retains control over the governance process, the Treasury, and the project’s smart contracts.
Abstract
Decentraland DAO faces numerous challenges, including inefficient resource allocation, difficulties in talent retention, short-term focus, and misalignment with the Decentraland Foundation. This proposal recommends establishing an Executive Arm to promote long-term planning, streamline operations, provide essential services to the DAO, distribute funds for community projects, and execute key initiatives under the oversight of a DAO Council. The Executive Arm will ensure all operations are aligned with the DAO’s mission, fostering strategic growth and sustainability.
Motivation
The Decentraland DAO has encountered significant roadblocks in its current structure, impacting its effectiveness and long-term sustainability. Below are the key issues that need to be addressed:
- Resource Allocation Inefficiencies:
Despite the introduction of new grant management systems like the Grants Support Squad and Revocations Committee, the DAO continues to struggle with resource allocation. These mechanisms have not effectively addressed the challenges of prioritizing impactful projects, leading to inefficiencies and, in some cases, misallocation of funds. Additionally, malicious actors and a lack of clear context around the potential impact of projects often result in suboptimal funding decisions. There is a need for a more strategic, context-driven approach to fund allocation, ensuring that resources are directed toward initiatives that will have a meaningful and lasting impact. - Misalignment with the Decentraland Foundation:
The Decentraland DAO and the Decentraland Foundation remain misaligned in terms of strategic objectives, despite the establishment of improved communication channels like the Request for Information (RFI) process, Canny feedback, and Community All Hands meetings. This misalignment largely stems from the difference in organizational structures: the Foundation operates as a traditional, top-down organization, while the DAO follows a decentralized, bottom-up approach. These differing architectures make collaboration challenging, leading to inefficiencies in decision-making and project execution. Achieving better alignment between the two entities is critical for the success of Decentraland as a whole. - Short-Term Focus:
The current funding model of the DAO tends to incentivize short-term, output-focused projects, rather than fostering long-term, impactful initiatives. Many projects aim for quick wins to secure funding but often lack a sustainable vision that supports the DAO’s long-term goals. To build a robust, open alternative to big tech metaverses, Decentraland must shift its focus from short-term outputs to long-term, strategic objectives. This requires a comprehensive planning framework that prioritizes enduring value and growth for the ecosystem. - Talent Acquisition, Retention, and Continuity:
One of the most pressing issues the DAO faces is the difficulty in hiring and retaining top talent, particularly under the grant-funded Core Unit model. The reliance on short-term grants has made long-term planning and continuity difficult, resulting in critical disruptions when teams are dissolved or personnel leave. For example, the recent dissolution of the Facilitation Squad left key initiatives incomplete, highlighting the fragility of the current system. To ensure Decentraland’s long-term success, a more stable and sustainable approach to talent acquisition, retention, and role continuity is needed. - Treasury Management Issues:
The DAO has made several unsuccessful attempts to manage its treasury effectively, which has weakened its reputation with partners, vendors, and potential contributors. These failures highlight the need for a better strategy in terms of both treasury diversification and long-term financial management. The DAO must adopt a more comprehensive approach to managing its assets, ensuring that its treasury can support the project’s long-term sustainability. Without addressing these issues, the DAO risks continued financial instability, which could undermine its ability to fund important initiatives and achieve its mission.
Specification
Responsibilities of the Executive Arm:
- Annual planning and budgeting:
The Executive Arm will develop a long-term strategy aligned with Decentraland’s vision of creating an open, user-owned metaverse, and the mission to ensure the sustainability of the Decentraland ecosystem through representative governance, management of collective resources, and technical innovation. This strategy will be focused on sustainable growth and community engagement. - Grant Management:
The Executive Arm will oversee all community grants, ensuring that funds are strategically allocated to projects that align with long-term goals, reducing risks of misallocation to short-term or low-impact initiatives. - Strategic Initiatives Management:
The Executive Arm will be responsible for hiring and managing staff to execute key strategic initiatives, such as seasonal events, improvements in creator tools, and alternative clients, and enhancing communication infrastructure to support the community. - Operational Oversight:
The Executive Arm will ensure full transparency by regularly reporting on its activities to the DAO. This includes financial disclosures, maintaining legal compliance, managing staff salaries, and fostering collaboration with the Decentraland Foundation to ensure alignment across all operations.
Oversight by the DAO Council:
- Hire the Director of the Executive Arm:
The DAO Council will be responsible for hiring, guiding, and, if necessary, replacing the Director of the Executive Arm. The Director’s performance will be regularly reviewed to ensure alignment with the DAO’s mission and strategic goals. - Strategy and Budget Approval:
The Director of the Executive Arm will propose an annual strategy and budget, outlining key initiatives, project plans, and financial allocations for the year. The DAO Council must approve this proposal before implementation, and the decision will be subject to veto by the DAO. - Treasury Diversification Strategy:
The Executive Arm will develop a strategy for diversifying the DAO’s treasury to generate sustainable growth. This diversification plan will be submitted to the DAO Council for approval, and the decision will be subject to veto by the DAO.
Governance Powers Retained by the DAO:
- Governance Mechanisms:
The Executive Arm will not have the authority to modify the DAO’s governance mechanisms. The DAO’s current three-stage governance process—polls, drafts, and binding proposals—remains intact, ensuring decentralized decision-making. - Ownership of the Treasury and Decentraland’s Smart Contracts:
The Security Advisory Board (SAB) will continue safeguarding smart contracts and maintaining custody of the DAO’s treasury, ensuring additional security and oversight independent from the Executive Arm. - Election and Oversight of the DAO Council:
The DAO retains the power to elect and dismiss members of the DAO Council through hiring proposals. Additionally, the DAO will have the ability to veto any strategy or budget approved by the DAO Council. - Veto proposal: The DAO will have the power to veto critical proposals proposed by the Council.
The organizational structure, departmental framework, budget, and resource allocation strategy will be developed autonomously by the Director of the Executive Arm and presented to the DAO Council for approval. While this proposal establishes clear boundaries and divisions of responsibilities to ensure accountability, it intentionally provides the Executive Arm with the necessary flexibility and ownership to define how it operates. This allows the Executive Arm to adapt and refine its internal processes over time, ensuring it can respond effectively to the evolving needs of the Decentraland DAO. The DAO will also retain the power to veto critical decisions from the Council
Conclusion
The establishment of an Executive Arm, supported by a DAO Council, is critical to overcoming the inefficiencies and challenges faced by the Decentraland DAO. This structure will enable more strategic, long-term planning, better talent retention, and improved resource allocation. The DAO retains control over critical governance functions, ensuring that power remains decentralized. By addressing key operational challenges, this proposal positions Decentraland for sustainable growth and leadership in the open metaverse space.
to convert in content 
for Decentraland. It is in fact being converted to content since the beginning of grant proposals. DCL has countless new content thanks to grantees. This change is about the efficiency of the system. I guess everyone would agree that the total sum of what is being provided by the grantees is way too expensive for the content that is being delivered.