This is an early stage document, a work in progress, and we expect this document to change.

All comments welcome

Any organization of a certain size will need to split of into smaller working groups to facilitate decision making.

Security trades off with convenience, and since high-value DAOs need very security in managing their assets, they have high friction in their decision-making. This is leading DAOs like Yearn (sub-groups), DXdao ("squads"), Uniswap, and Compound (grants committees) to create lower-security subsidiary systems they can delegate work to. Most of these subsidiaries are limited to budget allocation decisions; however, some do more, like DXdao's squads, which potentially manage entire products.

DAOs

All suborgs that we create will be based on Lego DAO Gnosis safe + Compound)configurations

Depending on needs, suborgs can be vanilla Gnosis Safe, but can also be full-fledged separate DAOs with their own voting power distribution, they can run on main net or on side chains

Depending on the use case, sub DAOs can be very simple DAOs, mb just multisigs for subcommittees, without a separate voting mechanism, and "power transfer" will just consist of sending some cash to spend form the mother DAO to the child DAO. This is not so interesting from a technical point of view, but it is interesting from a UX point of view.

• All suborgs though will share the same (compound-based, configurable) voting machine
• Mother org can control indirectly by periodic funding that can be stopped, but can also control directly by having voting power in the subdaos
• What we will build:
  • Contract integration (Compound fork, gnosis safe, tooling for deployment)
  • A UI for each of this family of DAOs (maybe as a Gnosis Safe plugin)
  • A dashboard showing all dxDAO subsidiaries and how they are related
• Services we provide:
  • Consultancy and tech support for Subdao configuration and creation
  • ?hosting of services like UI
• All code we write is open source, all interfaces will (as far as possible) be "hosted" on public services (on chain, the graph network, ipfs, github)

Connecting up DAOs

In a Lego DAO, there are two "attachment" points for sharing power between DAOs:

a) a DAO can have Voting Power in another DAO, and so influence the decisions

b) two DAOs can be co-signers of the Gnosis Safe wallet. These are versatile, easy-to-understand mechanisms for sharing power between DAOs, each with their pros and cons, and it seems to me that is a good story