[PROPOSAL] Sub-DAO mechanics

Summary

The proposal defines the process of sub-DAO creation and funding, as well as the sub-DAO’s place in the GuruDAO organizational structure.

Background

The proposal's goal is to implement an organizational structure in the early stage of GuruDAO. There exists several unique organizational structures across DAOs that have all been considered. After careful review, a structure similar to GitcoinDAO seems to be the most sustainable, clear and at the same time effective from a management perspective. This proposal is the further development of GitcoinDAO mechanics.

Proposal

Definition

A sub-DAO can be thought of as an atomic unit within the GuruDAO. It is a coordinated group of people with specific tasks and goals aligned with the DAO’s mission. These sub-DAOs are funded by the GuruDAO and are given a set budget by the GuruDAO upon creation.

A sub-DAO is an independent entity and is free to set up its internal governance, processes, and structure without any approval from GuruDAO.

It is important to note that GuruDAO will not micromanage any sub-DAOs and will provide it with all necessary rights to operate per its goals and KPIs (Key Performance Indicators). When addressing internal sub-DAO issues, it is not necessary to create a GuruDAO-wide proposal, but instead, the sub-DAO will be given full autonomy to move forward on its own.

Below is a list of the rights maintained by a sub-DAO.

• Right to define its own structure for pay.
• Right to seek outside sources of funding.
• Right communicate & cooperate with other sub-DAOs.

GuruDAO's organizational structure may include multiple sub-DAOs, organized to complete a specific project, responsible for ongoing processes or lines of business.

Process

Creating a sub-DAO requires a formal proposal only if it is requesting funding from GuruDAO. Otherwise, GuruDAO members may assemble to create a sub-DAO and carry out tasks without the approval of a formal proposal.

A sub-DAO requesting funds from the GuruDAO treasury must apply for funding by making a formal proposal.

Formal sub-DAO proposals must follow the standard governance proposal process and satisfy the following criteria:

• Have a clear objective that aligns with the GuruDAO mission.
• Name a steward who is directly responsible and willing to take ownership of the objective and accountability for meeting it.
• Propose clear budgets and timelines for producing outcomes.

The initial sub-DAO funding proposal must include the following information:

• Vision

  How does this project advance the GuruDAO goals or align with its values?

• Target

  What will be delivered by the sub-DAO using this funding?

• Budget

  What amount is required for the sub-DAO to achieve the initial target, and how will it be spent?

• Milestones & Timeline

  What are the key milestones for the initial target?

  What is the timeline for completing the initial target?

• Reporting

  How frequently and in what form is the sub-DAO going to report its status?

• Steward Responsible

  Who is the steward managing the project and accountable for its outcomes?

Subsequent proposals for additional funding must include the following information:

• Initial Funding Assessment

  Was the initial target met? Was the project completed? Was it completed on time? Did it meet expectations? If the sub-DAO fails to deliver on something, what will be done to avoid those problems with the renewed funding?

• Renewal Targets

  What will be delivered by the sub-DAO using this funding?

• Renewal Budget requirements

  What amount is required for the sub-DAO to achieve its new target, and how will it be spent?

• Reporting

  How frequently and in what form is the sub-DAO going to report its status?

• Steward Responsible

  Who is the steward managing the project and accountable for its outcomes?

Specifications

• n/a

Pros

• The proposal clearly outlines the mechanics and structure of a sub-DAO.
• The proposed mechanics have a proven track record in GitcoinDAO.
• The sub-DAO proposal is not a new concept, thus can be adopted quickly with an expected efficiency level.
• The proposal allows for earned independence within a sub-DAO.

Cons

• The sub-DAO proposal is based on social consensus and human collaboration rather than blockchain mechanics.