The Ten Principles for Building an Efficient DAO

1. Evolution from simple to complex

Effective complex systems often originate from simple and efficient systems. This principle is especially important when designing a minimum viable product, starting with basic functionality and gradually iterating to improve.

2. Focus on core elements

Typically, 20% of key efforts can generate 80% of effective results. When designing a DAO, priority should be given to core functions and features that can bring the greatest value.

3. Reasonably allocate time and resources

Work tends to expand to fill the available time or budget. Setting reasonable deadlines and resource constraints can both promote efficiency and avoid overconsumption.

4. Carefully choose evaluation criteria

When a certain metric becomes a target, it may no longer be a good measure. Special attention needs to be paid to this when designing incentive mechanisms or evaluation systems to avoid unintended negative effects.

5. Keep the team lean.

Increasing manpower does not always speed up project progress; sometimes it can actually cause delays. Maintaining a smaller core team size is usually more beneficial for improving efficiency and collaboration.

6. Embrace technological advancement

Technical capabilities will significantly improve over time, while costs are decreasing. When building a DAO, one should take full advantage of this trend and choose advanced and efficient technological solutions.

7. Emphasize Network Effects

The value of the network is proportional to the square of the number of users. When building a DAO, one should focus on creating exponential value growth and emphasize the connections and interactions between users.

8. Consider social scale limitations

The number of stable social relationships that humans can maintain is limited. When designing the organizational structure of a DAO, this cognitive limit should be considered to reasonably divide team size and hierarchy.

9. Modular Design

Adhere to the principle of "a program should do one thing and do it well". When building a DAO, a modular design approach should be adopted to ensure that each component can operate independently and collaborate effectively.

10. The organizational structure affects system design

The design of a system often reflects the communication structure of the organization that created it. When designing a DAO, attention should be paid to the consistency between the organizational structure and the technical architecture, avoiding an overly complex overall structure.