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Purpose-Led Organizations as DAOs

Published on
June 22, 2022

Purpose-Led Organizations as DAOs

The corporate structure has a significant impact on a company's overall performance. Organizations may build competitive advantages directly from their blueprints, from strategy execution to corporate culture and meeting customer expectations. An inclusive structure is especially vital for Purpose-led Organizations, which must have a compelling 'What, Where, When, Why, Who, and How' to drive contributors to achieve social and non-financial goals.

Aligning incentives within a movement while retaining motivation and economic viability has been a topic of creativity until lately. However, he adds that genuine governance should "pervade all areas of existence, particularly where the individual's interests may collide with the larger good." Online communities that share control of a cryptocurrency wallet to achieve common goals, such as running a business or charity, usually have their own membership 'token.' Any purpose-driven organization can be equipped with the resources to allow horizontal leadership to grow by financially incentivizing a shared initiative by incorporating as a DAO. This elicits the best of humanity: the instinctive urge to contribute to something bigger than ourselves and beyond profit.

How to Create a Mission-Driven Organization

Several conditions must be met to create a purpose-driven organization:

  • Belief
  • Leadership that is involved
  • Integrated mission
  • Clear communication
  • Incentives and performance indicators that are in sync
  • Individuals with a sense of power
  • Core values have been established.

DAOs are currently set up to meet all of the following requirements:


DAOs do not require permission to join and require the purchase of a governance token. Members who have a proactive belief in the DAO's primary objective are self-selected via this framework.

Leadership that is involved

An active membership develops organically engaged leadership, motivated by a common goal. This is clear when a leader's first step is to wind down the legacy organization that came before the DAO.

Integrated Mission

Traditional hierarchical systems strangle innovation by denying lower-level employees the resources they need to achieve their goals. On the other hand, upper management is not accountable to anyone below them, leading to animosity when projects go wrong or promises are broken. DAOs, on the other hand, are horizontal organizations with few if any command-and-control structures. Members can call votes on proposals at any moment. A successful vote will deterministically release funds to the project or department in question if they're related to on-chain executions. As a result, the purpose that develops from DAO members' actions is directly integrated into the organization's operations.

Clear Communication

A DAO's day-to-day operations require a variety of communication platforms, such as Discord or Telegram. Progress is accomplished, however, only when discussions are turned into actual proposals for members to vote on; only a successful vote will result in funds being released. This intrinsic aspect of DAOs acts as a latent, disciplining effect on all internal communications, instilling expectations of clarity and concision in the organization's culture.

Incentives and performance indicators that are in sync

Most of an organization's operational innards are replaced by a software stack in DAOs. As a result, dealing with operational difficulties like incentive systems and performance indicators can be as easy as adding a plugin.

Individuals with a sense of power

Members of the DAO have complete authority to propose, vote on, and - if the proposal passes - execute proposals using several tools. It's worth noting that DAOs' pursuit of collective goals is voluntary. This removes the political tension that has plagued considerable historical efforts to achieve collective goals. The authority inside DAOs is genuinely distributed, and collective goals are not pursued at the price of individual freedom because DAO membership is permissionless, and the precautions against centralization are cryptographically enforced.

Core values have been established.

The governance stack is pre-programmed with core values like decentralization of power and universal suffrage. As a result, projects developed on top of it must inherit those essential ideals. This is critical for pioneering programs like MonsterArmy DAO, which empowers athletes to build money in a historically paternalistic community through participation in sports. Positive feedback will only rise as ecosystems grow, and more sympathetic projects will migrate into DAOs, strengthening those key ideals even more.

Create your Purpose-Driven organization.

Compared to traditional approaches, creating a purpose-driven organization as a DAO like MonsterArmy is shockingly simple, with very little administration and no fixed expenditures.