What is DAO-to-DAO?
Eliot Couvat
0xC024
November 4th, 2021

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The Internet is a global marketplace of talent and ideas, and DAOs have formed in this giant marketplace to facilitate collaboration between these talents. This complete paradigm shift in the way we’re working together might be the single biggest shift in the past half-century, and we’re just beginning to see the earliest possibilities.

While many tools are created every day to help intra-collaboration in DAOs, it seems essential to start thinking about inter-DAO collaboration and build what will help the next million DAOs collaborate: DAO to DAO tools.

The emergence of these new internet-based institutions, more autonomous and more fluid, will require a new perspective on the concepts of negotiation and cooperation in a globalized and 24/7/365 economy. The tools that will fuel this economy are yet to be created.

1 - The DAO 2 DAO Model

The DAO-to-DAO model could be explained as a model allowing goods and services (tokens, information, data…) to be exchanged safely between DAOs depending on predetermined event conditions. More broadly, the D2D model could be defined as all the tools, mechanisms, and protocols facilitating inter-DAOs collaborations by helping the exchanges be more secure and straightforward thanks to crypto mechanisms.

Because of its intrinsic structure, because, by design, DAOs enable fluidity of contribution, they are much more agile than traditional companies and can work on new experiments in a much easier way. 

Because they are decentralized, with no proper leader or hierarchy, they need efficient tools to make decisions and create trust with other DAOs.

Decentralized Organisations need to capitalize on their strengths and can’t do it by relying on products and tools made for Web2 companies. They need on-chain tools that help them be flexible while creating trust in the relation. New platforms have to emerge, using the DAO to DAO model and innovate in assisting DAOs in collaborating. 

D2D platforms will soon become an important segment of the Ecosystem.

2 - What needs to be built?

Negotiations are omnipresent in our economy. To reduce transaction costs, society tends to develop norms, protocols, and tools around these processes.

So what is most needed in the current DAO ecosystem? What tools need to be built now to help the current decentralized organization grow?

Firstly, Web3 is cooperative, and it’s also competitive. Future D2D platforms need to create the right tools that will facilitate collaboration (cooperation) while building trust (competition). These should be the two major elements underlining the creation of every new tool.

Secondly, today, the interface for efficient cooperation is lacking. We need platforms that can supercharge D2D collaboration with on-chain, more secure, web3-based forms tools. Each DAO should be recognized by its Contract address, making it easy to create an agreement solely by calling smart contract functions, regardless of the number of contributors or its position in the Ecosystem. Today’s collaborations still follow the old rules of negotiation and exchanges created in an outdated model without leveraging the power DAOs, and crypto mechanisms could provide.

Thirdly, unfortunately, the majority of D2D discussions today take place in silo-ed spaces (often on Discord or Telegram) and are heavily dependent on the trust created between DAO leaders (and legal agreement). We need tools to open that discussion and let newcomers join the party. 

Fourthly, as crypto networks are interoperable and, therefore, co-dependent by design, D2D platforms will have to create models and tools that guarantee this interoperability between platforms. These Agent-agnostic tools have to work regardless of the size and complexity of the DAOs. Regardless of its size or nature, each DAO should be abstracted to be an instance of the type agent

To do so, it’s essential to understand the DAO ecosystem better and understand the differences between them all. Indeed, the tools created to facilitate inter-DAO collaboration will have to solve problems broad enough to be relevant to each category while allowing DAO leaders to set up the tools to serve their specific needs use-cases. There’s a need for a set of tools that can accommodate multiple communities with different objectives, goals, entrance criteria, and development timelines.

From our researches and experiences working with hundreds of Creators and DAOs, we’ve identified six main types of DAOs: Social DAO - Protocol DAO - Investment DAO - Media DAO - Service DAO - Creator DAO. 

Today, the DAO ecosystem is disorganized because of a lack of efficient tools and a lack of connectors in the Ecosystem. D2D platforms will have to think about a way to facilitate the discoverability of new DAOs and reinforce the relationship between well-established DAOs (Curated list of DAOs, incentives around participating in the Ecosystem etc..).

In short, there are four main categories of tools that are most needed: 

  • Tools to overcome information asymmetry
  • Tools to create trust 
  • Tools and processes to vote and govern together
  • Tools to curate information

It’s now time, thanks to crypto mechanisms and tools designed specifically for the more fluid structure of DAOs, to automate and secure on-chain most of the overhead of collaborations. 

3 - Coinvise’s Vision

Here at Coinvise, we believe better coordination between DAOs can help the Ecosystem grow tremendously, giving financial freedom to more individuals. That’s why we create the tools that enable the on-chain conditions for DAOs to collaborate.

While the current tools available on our platform are about laying the building blocks for creating and managing a Social Token (the cryptocurrencies fueling DAOs), our long-term goal is about coming together and facilitating DAO2DAO cooperation on top of those foundations. We’ve successfully developed a set of tools to facilitate intra-DAO capabilities (Reward, Airdrop, Incentives…), and are now focusing on building the tools that will facilitate inter-DAOs and inter-creators relations. We also plan to facilitate those collaborations by creating a friendly ecosystem and serving as a super-connector within the DAOs using our tools.

Our core mission is the growth of the DAOs we’re supporting. By helping these D2D collaborations and helping them achieve a broader goal, we’ll create a positive environment where newcomers will easily access the well-implemented DAOs, and ensure these already well-established DAOs access the creative power of these newcomers.

Coinvise is already the go-to place for anyone wanting to create a DAO, and will soon be the go-to place for already created DAOs wanting to collaborate with others.

Conclusion

As mentioned earlier in this essay, although simple D2D collaborations already take place, these collaborations are reliant on social and legal agreements. With the development of crypto-mechanisms, it’s now time to allow and facilitate “on-chain agreements,” which will be more secured and enable more flexibility.


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Further resources:

Arweave TX
mFFBuN4jMgKvgoJ1kL9EMlzXuunwBVqE9XkUtIQrlyQ
Ethereum Address
0xC0241e384dB48C35E7b3FEded3BfEcd29A3E73e3
Content Digest
t7D8q8GwbSjFY3rcGP6ji9TuR6UPapCmBSMtpmyUBT4