Decision Making

The governance infrastructure of the DAO is designed such that the ‘voting threshold required to make decisions is proportional to the degree to which that decision impacts the DAO Community, and whether or not it leads to irreversible use of resources in the DAO treasury. The proportionality between various kinds of decisions that the DAO might need to vote on can be understood through the IMPACT - REVERSIBILITY Matrix below(Fig. 3):

Most of the decisions that the DAO needs to make fall within the spectrum outlined in the matrix above, ranging from low-stakes decisions that are easily reversible to high-stakes decisions that are difficult to reverse.

The decision-making process is, therefore, designed such that decisions within each quadrant follow a distinct flow from ‘proposal’ to ‘implementation’ reflective of where they fall on the priority spectrum.

Fig. 3: Impact - Reversibility Matrix for decision making