Creating Culture in a DAO

Opinions expressed are solely my own and do not express the views or opinions of my employer.

1. Culture usually starts at the top, with founders/leadership. In the absence of a traditional leadership team, who is responsible for creating and maintaining the culture for a DAO?

A lack of centralized control does mean that crypto does not have leadership. If I were to mention “crypto leaders” in a conversation, I bet a set of names would pop into your head. Unlike traditional leaders in web 2.0, I think of these people as figureheads of the protocol.

If I were to name a specific protocol like Ethereum or PolkaDot, you would likely be able to name the figurehead(s) associated. These figureheads, anonymous or not, set the tone of the protocol. Sometimes without realizing it, they are creating and maintaining the culture.

As it stands today, there is no single person assigned to create and maintain the culture for different protocols and products in crypto. The founder’s values often set the course for culture from the beginning, and it seems culture blooms (or dies) from there.

2. Because DAO’s lack traditional leadership structures, do you think culture is more important for a DAO than a traditional company?

Across the board, inside the crypto industry and outside it as well, culture is critical. One of our basic human needs is to feel a sense of belonging. Previous generations often found belonging & community through religious groups. As technology continues to expand, we are looking and longing for belonging in new places.

Communities that are organized around protocols provide a unique ability to offer belonging through technology. Those in crypto are often digital natives; they are used to connecting with others online. If the values and vision are thoughtfully set from the beginning, it provides a framework for these digital natives to gather, contribute, and belong to something outside themselves.

I don’t know if I can say that culture is more important for a DAO than a traditional company. Still, I know that culture is becoming increasingly important for our society and that protocols are uniquely positioned to create a culture where digital natives can belong.

3. What are the 2–3 things critical to building and maintaining a great culture in any decentralized community?

It is tough to say what is critical for building and maintaining a culture in a decentralized community.

Based on what we know of culture in centralized companies as well as the evolution of organizations, I would say two key elements are:

• Words: The values & vision of the community should be explicitly stated with a defined process for change.
• Actions: The figureheads of the community need to exemplify the vision and values. Responsibility and power are repeatedly given to those who are examples of the values and vision.

4. Which decentralized project do you think has the best culture and why?

I have seen many examples around this space of what I consider great culture (I wouldn’t use the word best here because best is subjective). SeedClub, SourceCred, & Index Coop to name a few. I am most impressed by those cultures that value the community’s human capital and work to create a sense of belonging.