Dropping as a DAO

One way DAOs leverage their collective power is through Droposals – originally coined by Gami – which are proposals made by the DAO to create and release products or collectibles, often in collaboration with artists, that generate revenue for the DAO while fostering user engagement.

DAOs have revolutionized the way people collaborate and make decisions on the internet. They provide a platform for communities to govern themselves in a decentralized, transparent, and democratic manner.

One way DAOs leverage their collective power is through Droposals – originally coined by Gami – which are proposals made by the DAO to create and release products or collectibles, often in collaboration with artists, that generate revenue for the DAO while fostering user engagement.

In many ways, Droposals are inspired by the meme of “creativity in multiplayer mode” coined by the Metalabel crew.

Droposals have been democratized by advancements in toolings over the last 6 months, specifically from Zora and the Nouns Builder team.

Why drop as a DAO?

Droposals unlock a number of key benefits for communities who leverage them:

• Democratization of Creativity: Droposals enable every member of a DAO to contribute ideas and be part of the creative process. This fosters a sense of ownership and engagement within the community, as members feel more connected to the outcomes of the DAO's activities. By collectively voting on the release of media, products, or collectibles, the DAO ensures that the decision-making process is transparent and democratic.
• New Revenue Streams: Droposals create new revenue streams for DAOs through sales and royalties generated from the release of the products or collectibles. This helps DAOs sustain themselves financially, enabling them to invest in other projects and further develop the community. More discussion of DAO revenue can be found in “The 9 Economic Models for Tokenized Communities.”
• Creator Advocacy: Droposals often involve collaborations with artists and creators, providing them with a platform to showcase their work to a wider audience. By splitting revenues with these creators, DAOs ensure that they are fairly compensated for their work, fostering a healthy ecosystem for creative collaboration. Additionally, an onchain Droposal of their work acts as a community-wide stamp of approval for the artist and their work.
• Fostering Community Engagement: The release of unique and exclusive products or collectibles through Droposals can generate excitement and engagement among the DAO's members and the broader community. This can help to attract new members and retain existing ones, strengthening the DAO's network and increasing its overall value.
• Expanding the DAO's Reach: By creating and releasing products or collectibles that resonate with a broader audience, Droposals can help to expand the DAO's reach and influence. This can lead to new partnerships, collaborations, and opportunities for the DAO and its members.
• Strengthening Community Identity and Collective Meme: Droposals can contribute to shaping the identity and culture of a DAO, as the products and collectibles released often reflect the values, interests, and passions of the community. This can help to create a stronger sense of belonging and unity among members, fostering long-term loyalty and commitment to the DAO.

Limitations of Droposals

Still, though, Droposals aren’t a perfect mechanism for onchain creativity.

There are a variety of decision-making bottlenecks that arise when dropping something as a collective. The collective decision-making process in a DAO can sometimes be slow and inefficient, particularly when dealing with complex or contentious proposals. This can result in delays of the release of Droposals or even prevent them from happening altogether.

Some of these debates may arise around the “officialness” of the drop. While the community might enjoy a piece of work, the underlying question to approve a drop is, “do we want this drop officially tied to our brand?” Different individual understandings of a DAO’s brand or mission leads to collective confusion.

Likewise, since Droposals are driven by the collective will of the community, there may be instances where the final product or collectible is not up to the desired standard. The decentralized nature of DAOs can make it challenging to ensure quality control and consistency across all Droposals. This is a persistent problem across the “decentralized media” landscape, one that publications and communities with continue to struggle with today.

We’re excited about the future of multiplayer creativity, and how tokenized communities can unlock these interactions at scale. If you’re interested in joining this conversation, grab a Membership Pass and join the Forefront community.