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[Update (25 February 2023):

Taking into consideration the feedback received in the comments, I will not be posting any more DAO updates here on the forum. Updates shall henceforth be posted on our new substack at https://effectivedao.substack.com 

Anyone still interested in this project may check / subscribe on the substack or follow us on:

Twitter: @EffectiveDAO 
Telegram :  https://t.me/effdao

Remember the auction dates:  12:01 AM UTC on 27 February 2023 to 11:59 PM UTC on 1 March 2023. 

Auction link: https://bit.ly/altruistwarriors

More about the auction:  Click Here

If you do end up buying an NFT, please send me a DM here or on Twitter so that I can send you an invite to the DAO's Private Discord. ]

Previous Update:

This is the 2nd update in the series, below is the first update. If you haven't read the first update please read it first:

DAO#1: I'm About to raise $1Billion for (and  Fix the Problems of) EA using a DAO ]



In my previous message posted some hours ago, I announced that I am about to launch a DAO (Decentralized Autonomous Organization) with a mission to raise $1 Billion USD mainly for effective altruism every 12 Months. (Thanks to all those who commented and those who reached out privately, I really appreciate 🙏)

But what, again, is a DAO? 

A DAO is an internet-native type of blockchain-enabled organization made up of a group of people with shared interests or goals and a shared treasury coming together to collaborate (usually over the internet) and to work towards achieving their shared goals. 

Decisions in a DAO are made democratically with every member having a say in the affairs of the organization usually through the ability to discuss, debate and vote on issues relating to the DAO's activities, policies and governance. Financial controls and voting are enabled by blockchain technology with transactions and voting results commonly recorded on-chain for full transparency.

Learn more about DAOs and how they work here and here

(Newbie Tip: DAO is commonly pronounced as if it's a word and not an acronym. So it's usually pronounced "dao" (rhymes with "how") and not "D. A. O.")

In other words, members of a DAO can pool funds together and then vote on how the funds are to be spent. Members are also able to vote on governance decisions that determine how the organization is run and managed. All of this is done in a transparent and decentralized manner enabled and facilitated by blockchain technology.

My plan is to create a DAO through which the effective altruism movement can collaborate to raise funding and provide grants for projects that are aligned with the vision and goals of the movement.

In this article I present more details about the way the DAO will work. 

(Note that this is not a final plan and everything presented here would ultimately be subject to debate and modification by the DAO members.)


A Quick SWOT Analysis of DAOs and EA

  • Strength - A large (and fast growing), highly motivated community peppered with very smart people.
  • Weakness - DAOs are new and largely experimental. No generally agreed best practices or standards have been developed yet and most DAOs are largely winging it.
  • Opportunity - Being quite early, among the first movers in the space of charity-related DAOs (none has so far attempted fundraising on this scale).
  • Threat - Technological barriers (many EAs and potential DAO members are probably not yet very familiar with web3 and blockchain technology).


My Approach to Crafting the Framework

In my approach, I viewed the structure of the DAO as a mix of a country (USA-like federation), a large corporation and a large social movement (similar to the one described in the book Impact Networks  by David Ehrlichman).

I did this because federations, corporations and movements are all various paradigms with which humans have successfully organized themselves at scale. A DAO is not so much different from them in that regard. Just that in a DAO most of the organization and co-ordination occurs virtually via various internet-based applications.

I drew inspiration from how these other organizational paradigms are structured and came up with a new framework bearing some resemblance to certain aspects of each of them. Some elements of my own crafting were also thrown into the mix.

I was also inspired by some of the tenets of Holacracy in which corporate governance is not realized in a top down fashion but in a more sideways, decentralized manner. 

In all, my framework is still very much experimental but it is only a minimum viable product (MVP), rather like a beta version that is meant to evolve into a battle-tested blueprint resulting from being repeatedly fine tuned over time as the DAO matures. 

I hope to eventually opensource this blueprint so that anybody can follow its guidelines to create their own well-structured DAO instead of having to always reinvent the [DAO] wheel.


Overview of the Framework

The structure that I have created is mostly flat and highly decentralized, made up of autonomous groups (or circles), each with their own budget and agency to determine their spending, tasks, targets, OKRs and KPIs (which must all be in alignment with (and in furtherance of) the overarching mission, vision roadmaps and policies of the DAO).

These circles are analogous to departments in a company (or ministries / departments / agencies in a government). Most of them are function-oriented with each circle tasked with responsibility for a related set of functions which form a part of what the DAO needs to do to achieve its overarching mission, goals and targets.

In the framework, leadership and governance are spread horizontally across the circles and circle leaders are voted in for a fixed tenure after which new elections are carried out. There are no limits, though, to how many times an individual may be voted back in to continue for another leadership tenure.

In addition to the governance (non-)hierarchy and largely independent circles, the framework also embodies the following characteristics:

  • An ethos of transparency, epistemic and moral integrity, inclusivity, safety, accessibility, diversity, democracy, accountability, financial prudence, humility, empathy, generosity, thankfulness, taking responsibility, being daring, not afraid to speak out and stepping up to challenges amongst others
  • An overwhelming culture of friendship, collaboration, support, tolerance and reconciliation 
  • In-built institution-like independent checks and balances
  • In-built mechanisms for continuous innovation, improvement and progressive decentralization
  • In-built mechanisms for fault-tolerance, redundancy and succession
  • Mostly asynchronous, virtual, remote-first work culture (minimal real-time meetings)
  • Working "in the open" and "over-communicating" to enhance transparency and ensure that information is easy and quick to access such that everyone can effortlessly stay up to date with everything going on in every area of the DAO
  • Regular community calls to keep everyone updated and in sync


Phases of Development

There shall be three main phases in the initial development of the DAO:


Phase 1 (Setup phase): 

  • For the first two or three months of the project, my team and I will work directly with the first cohort of DAO members to set things up properly. This cohort will be made up of buyers and holders of the first collection of membership NFTs which are going on auction in a few days time. 
  • 172 NFTs will be auctioned with an additional 10 given out for free so there will be about 182 members in the DAO during this phase. The main purpose of this phase is to hash out the finer details of the framework and policies, test out the working processes and prepare to scale up to handle the influx of the second cohort of DAO members (to be onboarded through a sale of 5,555 NFTs).


Phase 2 (Kickoff phase):

  • Phase 2 begins with the sale of 5,555 NFTs and onboarding of the second cohort of DAO members (ideally one NFT per member). This phase is like a pilot phase for the DAO to test out and fine-tune fundraising strategies, grantmaking, co-ordination, scaling, decentralization and other critical elements. There is no fixed duration for this phase. When a reasonable degree of smooth operations has been achieved, then the third cohort of DAO members will be onboarded to kickstart Phase 3.


Phase 3 (Consolidation phase):

  • This phase begins with the onboarding of the third cohort of members through the sale of 10,000 NFTs (ideally one NFT per member). At this point, we expect the total number of DAO members to be around 15,000 (182 + 5555 + 10,000 - {allowance for those who own more than one NFT}). 
  • After this third sale, new memberships in the DAO through NFT sales will be put on hold, but a wider/outer community of non-NFT holders will be nurtured around the core DAO community to form a secondary community. From these non-NFT holders, dedicated ones will, on occasion, be offered free membership NFTs to become bonafide DAO members.


Governance and Circles 

Ideally each member only needs to own one NFT which acts as their membership pass and gives voting ability. I NFT = 1 vote. 

In the DAO, every member is equal but may align (or be grouped under) various independent groupings (or circles) which are saddled with varying duties and levels of responsibility and governance. 

There are three types of circles viz:

  • Teams
  • Councils
  • Guilds

Additionally, circles may be further broken down into committees (which are temporary groups of persons set up to execute a specific time-limited project or complex task). Committees are meant to be dissolved after they conclude the project or task for which they were created (unless there is a need for their continued existence).

Circles meet and collaborate through online platforms like Discord, Notion, Slack, Gather.town etc  (just like a remote-first company). Some of the platforms would be "token-gated" to allow access only to the DAO's NFT holders.

Circles operate with a large degree of independence and autonomy and receive their own budget allotment from the main DAO budget. Spending from a circle's budget would only require the approval of the circle's members. 

Circles have full agency and freedom to set their own goals, roadmaps and strategies for executing their responsibilities as long as they align with the overall mission, vision, roadmaps, targets and policies of the DAO. 

They are empowered to make most of their internal decisions through consensus of (or voting by) only the given circle's members instead of the entire DAO membership. 

These internal decisions include matters affecting only the circle or relating to their area of expertise (or the execution of their core duties and responsibilities). 

However, key decisions such as policy changes, grants (above DAO-determined thresholds), budgetary allocation to circles and a host of others must be reviewed and approved via majority vote by a quorum of DAO members.

In my framework, some of these circles have been designed (on purpose) to overlap with each other so as to improve co-ordination, redundancy, information flow, collaboration and cross-pollination of ideas within the DAO. 

DAO Members are not restricted to being part of only a single circle but may be participants in multiple circles depending on their skills, interests or roles within the DAO.

The structure and composition of the various circles helps to echo and amplify individual voices and opinions at the highest levels such that every interest in the DAO is well represented. 

Some of these circles also serve as checks and balances for each other, ensuring that no single person, group, circle or interest becomes too influential or too powerful within the DAO.

Teams meet virtually and asynchronously, collaborating actively in a continuous stream on a daily basis while most Councils and Guilds meet less frequently and are slightly less active.

Most of the co-ordination, communication and collaboration within the DAO will be virtual and carried out asynchronously online (unless the situation permits or requires a real-time meeting or event such as in the case of community calls or 1-on-1s).

Real-time (i.e. synchronous) meetings are generally meant for emergencies, strategizing, resolving disputes and conflicts, ironing out policies, developing roadmaps and OKRs, accessing progress, discussing high level issues and staying updated. 

Here is a list of the main classes of circles followed by a description of each of them in descending order of their governance responsibility:

  1. Guidance Council (or GC)
  2. Expanded Guidance Council (or EGC)
  3. Advisors
  4. Council of Commons (or CoC)
  5. Leaders Guild
  6. Teams, other councils and other guilds


Level 1: Guidance Council (or GC): 

  • This is the highest circle of governance and it comprises the Founding Team and the first cohort of DAO members a.k.a the O.Gs (i.e buyers/holders of the NFTs that will be auctioned in the coming days). 
  • The most important duty of the Guidance Council is to steer the DAO, propose policy directions, review overall performance and provide guidance at the highest level to ensure that the DAO does not stray from its mission, vision and policies. 
  • They are the chief custodians and guardians of the vision and also help to resolve any conflicts, disputes or controversies that can not be resolved at lower levels of governance.
  • At the onset they will work together to flesh out DAO policies and processes during the 2-3 month setup phase which begins after the upcoming NFT auctions (more details about this in later updates).
  • The GC is ultimately answerable to the entirety of DAO members and any GC member may be replaced by a DAO-wide majority vote. All major decisions by the GC are also to be approved by the entire DAO through voting.
  • In emergency situations, the Guidance Council is also empowered to take key decisions on behalf of the DAO if time will not permit such decisions to go through the normal discussion/voting process.


Level 2: Expanded Guidance Council (or EGC): 

The Expanded Guidance Council (EGC) is the second highest level of leadership of the DAO, one level below the Guidance Council (GC). It serves as a bridge between lower levels of governance and higher levels of governance. It also makes policy recommendations, resolves high level disputes and acts as a think-tank for (and check on the powers of) the GC amongst other duties.

It comprises:

  • All members of the Guidance Council
  • All circle leaders
  • All DAO advisors
  • All members of the Council of Commons (which is made up of 30 elected representatives from the entire DAO)


Level 3: Advisors: 

A group of non-voting external advisors of upstanding character and substantial knowledge of (or experience in) EA causes, philanthropy or grantmaking (may also include voting DAO members).


Level 4: Council of Commons (or CoC): 

The Council of Commons (CoC) is meant to be a representation of the entirety of DAO members (minus the GC). Its function includes acting as the voice of the DAO "common folk" (i.e regular DAO members outside of the leadership cadre) and a check/balance for the GC, EGC and circle Leaders. It is composed of 30 elected representatives from the entire DAO (minus circle leaders and members of the GC). 


Level 5: Leaders Guild

Comprises all circle leaders. The primary purpose of this guild is to enhance cross-collaboration, co-ordination and information flow among the various circles.


Level 6: Teams, other Councils and other Guilds

These are the foundational elements of the DAO structure. Teams handle the lowest level activities and functions required for the DAO to achieve its goals while other councils and guilds offer a way for decision making, cross-co-ordination and thorough cross-pollination of ideas and opinions across various views, interests and governance levels in the DAO. 


Special Teams

Among the teams, there are three special teams: Meta Team, Emotions Team and Red Team.

  • The Meta Team co-ordinates the smooth flow of information, resources and collaboration among all the circles. They fill in wherever there are leadership gaps and temporarily plug any loopholes in co-ordination and governance until a permanent fix is found. They are like the blood vessels and nerves of the DAO and help to keep it flexible, resilient and in sync. 
  • The Emotions Team are analogous to a community health mechanism that deals with personal or private issues, emotional stuff, mental/physical health, wellness and interpersonal relationships etc
  • The Red Team are the "red-pillers" and whistleblowers, criticising and calling out irregularities, deviations from the accepted rules and norms and putting a check on Leadership and individual members who break the DAO policies or code of ethics.

The Red Team has a special elevated status because of the role it plays as a watchdog and a check on leadership by way of its mandate as an unbiased critic and "red-pill" institution within the DAO (and even the wider EA movement).

A complete list of all the Teams and their responsibilities will be provided in an upcoming update.

Following is a pictorial representation of the proposed governance (pseudo)-hierarchical structure. Notice that governance flows mostly from the bottom to the top (as indicated by the direction of the arrows) rather than top to bottom; and the Guidance Council (GC) is ultimately answerable to all DAO members.

DAO's (pseudo-) hierarchy chart

Although it is represented as a top-down hierarchical structure in the diagram, this is just a 2-dimensional representation and does not imply strict top-down control and governance (that's why I labelled it a pseudo-hierarchy). 

In reality, it's more like a flatter 3-d structure where each element has roughly equal powers but varying degrees (or levels) of responsibility. 

No single element (i.e circle) has 100% autonomy to govern itself to the exclusion of the rest of the DAO, rather, every circle is ultimately subject to the control of the entire community of DAO members.

The actual structure of the DAO is close to that of a Holarchy as shown in the following diagram:

Structure of a holarchy (Image Source: Sketch Bubble)

What is a Holarchy?

The structure and relationship between circles in my framework was partly inspired by multi-agent systems and by (but not identical to) a form of governance known as Holarchy or Holacracy.

According to Wikipedia "A holarchy is a connection between holons, where a holon is both a part and a whole...

...Holarchy is commonly referred to as a form of hierarchy, however, hierarchy, by its definition, has both an absolute top and bottom. But this is not logically possible in a holon, as it is both a whole and a part. 

The "hierarchical relationship" between holons at different levels can just as meaningfully be described with terms like "in and out", as they can with "up and down" or "left and right"; perhaps more generally, one can say that holons at one level are "made up of, or make up" the holons or parts of another level. 

This can be demonstrated in the holarchic relationship (subatomic particles ↔ atoms ↔ molecules ↔ macromolecules ↔ organelles ↔ cells ↔ tissues ↔ organs ↔ organisms ↔ communities ↔ societies) where each holon is a "level" of organization, and all are ultimately descriptive of the same set (e.g., a particular collection of matter). The top can be a bottom, a bottom can be a top, and, like a fractal, the patterns evident at one level can be similar to those at another."


Metaphorically Speaking...

Here is a useful metaphor that you may employ in visualizing the DAO structure: 

Picture it as a very intelligent, powerful and resilient meta-organism where:

  • The Councils and Guilds are the skeleton
  • Regular Teams (minus Meta, Red and Emotions) are the organs, tissues and limbs
  • Meta Team are the blood vessels, red blood cells and nerves
  • Red Team are the white blood cells (fighting diseases)
  • Emotions Team is the heart
  • The entirety of DAO members make up the brain (a compound brain where all the component brains are working in perfect synchrony and harmony to surface a sort of hive-like intelligence; a superintelligent hive mind if you will)


My Role as Lead Founder / OG 1

At the onset, I will supervise, co-lead or play an active role in the various circles so as to set the ball rolling and ensure that things are correctly laid out and set up to proceed (with minimal need for my direct input) according to the vision and framework I have developed.

In essence I shall play the role of a sort of benevolent dictator (maybe even doing a wee bit of micro-managing) for the first few weeks and months of the DAO's existence. This is to ensure that the basic foundations are properly laid out according to the given framework.

Gradually I will reduce my powers and begin to step back from many active duties. Doing this will create opportunities for other DAO members to take on more responsibilities and step up to leadership roles thus paving way for new leaders to emerge organically from the community.

I plan to drastically reduce my direct involvement, powers and influence over the DAO's affairs when we raise our first $1 Billion

Eventually, I shall relinquish most of my power and influence to focus more on watching over the meta co-ordination and governance structures, thus essentially reducing my role to being that of a guardian of sorts (the chief custodian of the grand vision), gently nudging the DAO back on the right path whenever it shows any sign of straying from the agreed framework and consensus.


The Main Duties and Responsibilities of DAO Members: 

DAO members are not under any obligation to participate actively in the DAO's activities. However, all DAO members are strongly encouraged (where possible and/or convenient) to try to do all or some of the following:

  • Actively seek out and talk to donors within and around your network about the DAO, upcoming fundraising activities and why they should begin donating once or periodically to the DAO
  • Participate in the various events and activities of the DAO
  • Contribute to various discussions on the DAO's collaboration platforms
  • Debate and vote on proposals
  • Suggest projects (or submit proposals) if you have any ideas
  • Reach out to, recommend or refer other EAs who aren't DAO members but who might have interesting and impactful projects that need funding
  • (Where possible), organize your own (formal or informal) meetings with donors to pitch the DAO to them
  • Consider donating regularly to the DAO from your earnings (start with any percentage, this is better than 0%). Taking this to the extreme, also consider earning to give if it suits you (remember, according to 80,000 hours, "Earning to give is not just for people who want to work in high paying industries. Anyone who aims to earn more in order to give more is on this path.")
  • Join other DAO members in fundraising drives and other DAO events
  • Volunteer (and/or provide assistance if needed) during virtual (or real-life) DAO events (happening near you)
  • Participate in Teams: One of the first things you should do after joining is to go through the teams' descriptions and figure out where and how you can to contribute. Join any team that best fits your skills or interests. You may join more than one team
  • When you join a new team, go ahead and introduce yourself, then identify opportunities where you could contribute from the teams open tasks, then indicate your interest in contributing
  • Participate in the various events and activities of your team(s)
  • Take every opportunity to promote the DAO, both IRL and online/on social media. Regularly share DAO content on social media. Creators could even create their own DAO-related content


Proposed Fundraising Strategies

The initial funds will be raised through sales of Non Fungible Tokens (NFTs)

These NFTs will also act as membership passes to the DAO's private communication, collaboration and voting platforms. Ideally one member per NFT.

In addition to NFT sales, some of the other fundraising strategies that shall be employed or experimented with include:

  • Conventional fundraising events like fundraising dinners/concerts/charity balls etc held once every quarter (preceded by two weeks of dedicated viral fundraising activities)
  • "Fundraising fortnights" which are two week sprints (done once every month or every two months) dedicated to widespread viral fundraising drives
  • Members leveraging their personal and professional networks to reach out to prospective donors and pitch the DAO to them
  • Individual members and small teams organizing micro-fundraising events, activities and activations
  • "Decentralized crowdfunding" where individual members initiate crowdfunding campaigns on their own to raise funds for the DAO
  • Developing the project's Intellectual Property into revenue-generating books, comics, cartoons, movies, merchandise etc
  • Developing DAO-owned fundraising apps and low-maintenance charity entrepreneurship online platforms, startups, SAAS applications etc
  • Continuously reaching out and encouraging donors to commit to regular/repeat donations
  • DAO members brainstorming and exploring various other fundraising ideas.
  • Donations from DAO members


More About the NFTs

There Shall be Three Main NFT Sales/Auctions. 

  1. I am starting off with the first NFT Collection of 222 items. (An NFT collection is a group of related NFTs). After this first collection auction, there will be two more major collections sales.
  2. The second collection will be the main collection of 5,555 NFTs (This is not live and not ready yet, our timeline suggests about 2 to 3 months after the first auction is concluded. It will be developed during the 2 to 3 months setup phase of the DAO)
  3. The third collection will consist of 15,777 NFTs out of which 10,000 will be sold and the remaining 5,777 distributed free to holders of NFTs from the previous two collections. This third collection will also be the flagship profile pic (PFP) NFT collection of the project. 

The First Collection (a.k.a the Pre-Genesis O.G Collection) will have only 222 NFTs out of which only 172 will be auctioned. This auction will be held online in a few days time and is meant to obtain the first cohort of members for the DAO. 

It is also meant to raise funds that will enable me to work on the project full time. Part of these funds will also be used to offset any costs incurred by the DAO during the setup phase. Part of it will also be used to support my organization (EffectiveCauses) which is the originator (and incubator) of this DAO idea.


Who Should Buy from This first Collection?

Anybody interested in EA is welcome, but at this stage it would be nice to have more people who fit into any of the following categories: 

  • You like to be a part of the DAO's Guidance Council (which is the highest level of governance)
  • You want to contribute intellectually in shaping the direction of the Project 
  • You want to support this project financially in it's early stage 
  • You are passionate about fixing EA's "problems" (and even have ideas on how to fix them)
  • You want to contribute: time, expertise, network or influence to creating effective impact in the world
  • You want to help grow and strengthen the effective altruism movement
  • You have experience participating actively in other DAOs
  • You have skills and experience in organization building, corporate/non-profit law and business process engineering
  • You have skills and experience in corporate or non-profit law
  • You have skills and experience incubating or accelerating startups
  • You like NFTs / Web3
  • You want to be known as an OG of the DAO ("OG" is a common term in the crypto world that is used to describe the earliest supporters/adopters of a project. Being an OG comes with significant bragging rights, recognition and respect in the community)


Auction Date and Pricing

The NFTs will be minted on a climate friendly blockchain (Polygon). They will be auctioned online via a virtual Dutch Auction on the OpenSea NFT marketplace.

In a dutch auction, the item starts at a relatively high price and is gradually reduced over the course of a given period until it gets to a minimum value. 

Anyone may buy when it gets to the price they are willing to pay but the catch is that the more you delay, the more the likelihood that somebody else will buy the one you are targeting before you do. So there's a need to act fast during the auction so as not to miss out.


The auction will begin at 12:01 AM UTC on the 27th of February 2023 and will last for about 72 hours, ending at 11:59 PM UTC on the 1st of March 2023


You may follow the project on Twitter and turn on notifications if you wish to be notified of updates and when the auction has started. Twitter: @Effective_DAO 



The starting price for each NFT will be 6,000 MATIC (about $8,000 USD at the time of writing) and the ending price will be 300 MATIC (about $400 USD at the time of writing). 

This means that over the course of the duration of the auction (about 72 hours), the price of each NFT will be reduced at a uniform rate from 6,000 MATIC at the start to 300 MATIC at the end. 

MATIC is the native token of the Polygon blockchain on which the NFTs are minted. You can see the current dollar value of 1 MATIC here.

Note: This price MAY be adjusted before the start of the auction to compensate for changes in the value of MATIC but you can generally expect the start and end prices to be equivalent to around $8,000 - $10,000 (Start) and $400 - $550 (End) so you should plan for this if you are interested in buying the NFT. You should also include $20 - $50 extra MATIC tokens to cover gas fees.


Can't Wait for the Auction? Want Yours NOW?

You can actually purchase any one (or more) of the NFTs RIGHT NOW (i.e before the auction starts) but it would have to be at the maximum price of 6,000 MATIC. 

The pros of getting yours right now are:

  • You are able to take your time to go through all the NFTs at your own pace and make your choice without the pressure of constrained time.
  • You get the exact NFT(s) you want without the pressure of having to contend with others during the auction. 
  • You eliminate the possibility of not being able to buy during the auction due to the possible rush of buyers.

The only con is the price, so if you do not mind the price (you could actually see it as a way of supporting the project financially) then you may go ahead, you could even pay more for it if you are feeling really generous. If you will like to get one before the auction despite this con then please send me a DM. But if you have general questions you may leave them in the comments.


Not Knowledgeable About Crypto? 

I understand that a number of persons may not be too familiar with the process of crypto transactions and buying NFTs on OpenSea. I could have included some links to resources but I decided against doing that because if you don't know a lot about crypto stuff, it's much better and safer to get someone who knows about it to assist you. 


An APPEAL to Funders and Donors 

Even if you may not have the time or are unable to participate for some reason, please consider sponsoring some person(s) who might be very motivated and willing to participate in the DAO but don't have the financial resources to buy an OG NFT during the auction.

Here are some of the things you could do to support us:

  • Buy the NFT for yourself if you will like to become a DAO member
  • Buy for others who you feel will be able to contribute impactfully
  • Donate directly to EffectiveCauses (my organization which is behind the DAO project)
  • Donate directly to the DAO

Note that at this time the organizations are not yet registered so any donations are not tax-deductible for now, but please don't let that dissuade you from helping EA become better,


Distribution of Raised Funds from the First Auction

The funds from this first auction of 172 NFTs are meant to be a kind of pre-seed funding for the project. Assuming all 172 are bought at the lowest price, I expect to raise at least $75,000 (but this will be most likely higher because of the auction style, assuming that all of them are bought).

The primary purpose of the first $80K - $100K that will be raised is to provide funds that would enable me to take a break from my current day job (or quit entirely) to focus full-time on working on the DAO for the next 9 to 12 months. 

If I can raise above $100K (which is quite likely if all NFTs are bought), the excess will be split equally between the DAO and EffectiveCauses (my own organization ) to be used to set up both organizations. 

EffectiveCauses Organization is (as mentioned in my previous update) a think tank / lab for generating impactful EA-related ideas, raising the funds for the ideas and executing and/or incubating them. 

It is an EA-aligned organization being set up by me and I have a handful of potential interns already indicating strong interest. Currently we meet once or twice a week IRL or virtually to discuss EA stuff and project ideas. 

This DAO idea is just one out of the numerous ideas we have come up with so far. There are plenty more where this came from and I strongly believe that the organization can create significant impact with appropriate funding.

The long term vision is to evolve into a kind of regional hub to provide a strong anchor and support base for EA groups and activities in Sub Saharan Africa and a base from where the movement can expand into other parts of the continent.

Before now I was at the stage of seeking funding to properly set up the organization. This funding would enable us rent and set up an office space, hire developers and permanent staff and kickstart some of the other projects we have come up with.

The amount that goes to EffectiveCauses from this first NFT auction will be capped at $400K and any extra goes to the DAO. 


Proposed Distribution of Further Raised Funds 

While the first NFT collection sales are proposed to be distributed as described in the preceding section, any subsequent funds raised from the second NFT sales onwards shall be distributed according to the formula proposed in this section. (This proposed formula is subject to further debate and ratification by the DAO)

In other words, funds from the second NFT collection sales (and all subsequent fund raises) shall be distributed according to the proposed percentages below.

  • 80% - MAIN DAO Charity fund. This is exclusively meant for issuing as grants, donations and other charitable interventions.
  • 8% - for the DAO's organizational running costs e.g admin costs, legal, team budgets, misc. overhead costs, marketing/PR, remuneration / compensation etc
  • 1.5% - as backup / emergency / reserve funds for the DAO (Limited to a maximum amount above which any excess is added to the main DAO Charity fund)
  • 4% - to support EffectiveCauses Organization (the DAO's founding / incubating organization)
  • 2% - goes to dedicated funding support for the DAO’s fundraising events and activities
  • 2% - for developing the Project's Lore (e.g the NFT characters) into valuable, revenue generating intellectual property (IP) (e.g for use in novels and stories, books, games, comics, animated and live-action movies, AR/VR/xR experiences, merch etc). The long term vision for the Lore is to turn its IP into a major additional source of funding inflow for the DAO (more on the Lore in my next update)
  • 1.5% - for paying for kidney dialysis and kidney transplants for poor people in Low and Middle Income Countries (adding this to the list is probably debatable / controversial but it is a philanthropic cause area that I care about very very very very very very much, remember the mission also includes some aspects of general philanthropy)
  • 1% - For developing ecosystem apps and dApps e.g the NFT minting dApp, a donation app with automatic processing of recurring donor pledges, a highly scalable, decentralized donation+fundraising web3 app to fully decentralize EA fundraising and grantmaking globally (similar to kickstarter or gofundme for EA projects), a small business loan platform like kiva.org. Also to create other revenue generating social enterprises, for-profit utility apps and platforms / ecosystem development apps.


Proposed Distribution of the MAIN DAO Charity Fund

As indicated in the preceding section, The MAIN DAO Charity fund is 80% of all total funds raised from the 2nd NFT collection onwards. This fund is set aside exclusively for the DAO to give out as grants or direct donations to other projects and organizations.

In this section I propose a sharing formula for how to distribute this MAIN DAO Charity fund but first some things to note: 

  • The DAO's mission is to both raise for EA and other charitable causes (but majorly for EA). 
  • Therefore, some causes mentioned below may not fall under EA's core cause areas of interest and may be highly debatable from a rigorous epistemic standpoint by staunch EAs, and honestly I am not confident that I can offer convincing arguments for all of them with respect to epistemics. 
  • But coming from someone who has lived all his life in an LMIC, I consider them of great importance (and quite neglected especially in LMICs) hence their inclusion (mostly under the general charitable causes). 
  • I am however open to further discussion with DAO members on the merits of having them included in the list but I'm very strongly in favour of adopting this list especially since it leaves 45% unallocated for the DAO to decide how to disburse.
  • Even though some items might differ from the known "official" EA priorities list, I am deferring to the broader spirit of EA which is doing good effectively
  • In light of this, I'm of the opinion that the most important thing in this context is to ensure that whatever interventions and grants the DAO funds in these non-core areas are done in an effective, efficient and evidence-led manner with measurable and significant net-positive impact.
  • Lastly, note that the percentages in this section sum up to 100%. This is 100% of the MAIN DAO Charity Fund (which is 80% of the total raised funds), so don't get it mixed up. (For example, 45% below refers to 45% of the MAIN DAO Charity fund, that is, 45% of 80% of the total raised funds.) 


And, here's the proposed distribution formula:

  • 45% - To be decided by the DAO, may be used to increase the funding for specific categories already included below
  • 15% - Donations to GiveWell recommended charities 
  • 10% - AI risks/Alignment, Longtermism, Biorisks, EA Careers and Cause Prioritization
  • 5% - Climate change tail risks (aid, research, advocacy) and natural disasters (aid)
  • 4% - Aid for trafficked and internally displaced persons (from war, terrorism, violence etc)
  • 2% - Micro grants ($800 - $3,000) in any category (mostly for disbursement by Teams and the Scholars Guild. More on the teams and guilds in future updates)
  • 2% - Nano grants (Less than $800) in any category (mostly for disbursement by Teams and the Scholars Guild.)
  • 2% - Animal welfare 
  • 2% - "Rebooting" civilization after a global catastrophe 
  • 2% - Micro business loans for needy people in LMICs (like kiva.org but with initial loans supplied by the DAO) 
  • 1% - EA community building and digital infrastructure
  • 10% - Other charitable causes in LMICs including: 
    - Infant mortality + maternal health care (especially in remote areas) 
    - Women's reproductive health 
    - Support for (poor) widows and orphans 
    - Support for disabled/differently-abled persons 
    - PLWAs (people living with AIDS) 
    - Primary health care in remote areas 
    - Water wells and solar-powered boreholes in remote settlements in LMICs 
    - Legal representation for wrongfully (and non-politically) imprisoned persons in LMICs 
    - Any other general charitable causes decided by the DAO


So What Next? Are You Interested?

Interested in this? Like to learn more or be a part of this? Do these:

  1. Prepare for the auction holding online on OpenSea from 12:01 AM UTC on 27 February 2023 to 11:59 PM UTC on 1 March 2023. 
  2. Follow the Project's account on Twitter:  @Effective_DAO 
  3. Visit the auction link at https://bit.ly/altruistwarriors
  4. If you do purchase one, please send a DM here or on Twitter so that we can send you an invite to the DAO's Private Discord.


Support Us

You can also support us by providing feedback and ideas in the comments and spreading the word about the Project to others in your network who you believe might be interested. You can also donate crypto to my organization (EffectiveCauses) or to the DAO. (Please DM me for this).


Share this (Good) News

Please share this post to all EA groups, communities and networks and to your social media friends and followers. Thanks!


Metaculus Anyone? 

I would really love if someone could create some metaculus predictions to see if (and/or when) we will be able to meet our goal of raising at least $1 Billion every 12 months. Or if we can even get the DAO up and running at all! 


Don't Miss the Next Update 

You may follow the project on Twitter and turn on notifications if you wish to be notified of updates and when the auction has started. Twitter: @Effective_DAO 


Content of the Next Update

In the next update I shall present more details about the artwork of the NFTs and the Lore of the project. Lore is a fictitious backstory common with most NFT projects.

The update will be posted here on EA Forum in about a day's time. I will add the link below when it has been posted.

Thank you very much for your time!


[Update (25 February 2023):

Taking into consideration the feedback received in the comments, I will not be posting any more DAO updates here on the forum. Updates shall henceforth be posted on our new substack at https://effectivedao.substack.com 

Anyone still interested in this project may check / subscribe on the substack or follow us on:

Twitter: @EffectiveDAO 
Telegram :  https://t.me/effdao

Remember the auction dates:  12:01 AM UTC on 27 February 2023 to 11:59 PM UTC on 1 March 2023. 

Auction link: https://bit.ly/altruistwarriors

More about the auction:  Click Here

If you do end up buying an NFT, please send me a DM here or on Twitter so that I can send you an invite to the DAO's Private Discord. ]





More posts like this

Sorted by Click to highlight new comments since:

People are being very polite to you and asking substantive questions. Others, please correct me if I'm wrong, but let me say what I think most readers here are really thinking:

  1. You should stop what you are doing. This comes across as a scam (I'll give some more details about that below) or at least as poorly organized. If this were to be successful, even in any small way, it would damage the reputation of EA because of the way in which it is presented.
  2. You need to have a little humility. Yes, EA is a space where people can and do have a big impact when they are new. But teams of the smartest people here have been trying to raise big money for years and it is simply not that easy. The good news about EA is that you do not need to raise 1 billion to have an impact. We are here to focus on the most effective things around, which means you can make a huge difference with just a few thousand dollars.

Here is why this seems like a scam to me:

  1. "Your organization", EffectiveCauses, doesn't have a website or any other public-facing information. However, there are a bunch of accounts.
    1. The "EffectiveCauses" Quora account is pushing crypto stuff that is unrelated to your DAO.
  2. The one person commenting in support of you looks a bit like an astroturf account (created recently, fake name/PFP).
  3. The Twitter account you linked to is also quite shallow (few posts/no substantive posts, no followers, etc.), as is your EA Forums account.

I’m not assuming its a scam, and seems unlikely it’d damage the reputation of EA. Seems like a person who got super enthusiastic about a particular governance idea they had, and had a few too many conversations about how to pitch well.

First of all let me sincerely apologize if this comes accros as poorly organized or scammy. It is definitely not my intention to do anything that would bring any more negative publicity to EA at this time.

I will immediately stop posting here and try other EA communities if I am asked to stop further updates by the mods.

But I am very hesitant to kill the project completely and I probably will not because I don't really think its success will make EA look bad, but again I'm new so maybe I dont fully understand it all.

I was (and strongly still) under the impression that this would be a good thing for EA and since it deals with a core EA matter then I felt I could / should post it here if only to gather some feedback and get the word out.

Especially since we have been encouraged to post on EA forum, I figured I could post them here.

Maybe the title or the $1B figure seems too sensational but I very much think its doable. Most of the push back on the other post seem to do with a DAO not being necessary for something like this and I tried my best to present my own arguments. 

I have put in a lot of work into this - since Nov 2022 to be precise and Istrongly believe in the possibility of success so I don't want to be discouraged by the negativity so far. I have tried my best to provide as much detail as I can explaining how I expect this to work (especially in this very post). If there is any information I'm leaving out I will gladly provide it.

I have watched people in the community bickering and dillydallying these past months over those EA issues but most seem to be just kicking the tires and nobody seems to be going further to do do anything or even ready to do anything concrete about this stuff.

And its eating me deep inside because I can clearly see how much greater this movement can be.

I agree that I'm new to EA (and maybe a bit overzealous in my thinking) and I would love to receive constructive advice on how to go about doing this properly instead of killing the whole idea.

To  the best of my knowledge I have tried to answer every question on the first post and I will continue to try and do so with this one.

If my identity is an issue to contend with then I don't mind revealing it if I have to, or if anybody cares they could DM me for that.

Regarding your "scammy list"

"Your organization", EffectiveCauses, doesn't have a website or any other public-facing information. However, there are a bunch of accounts.

  1. The "EffectiveCauses" Quora account is pushing crypto stuff that is unrelated to your DAO.

1. Effective Causes is new and mostly not set up formally yet. It is literally still just an idea in my head and rough blueprints. One of the reasons I'm fundraising for that is to setup formally.  The quora and every effectiveDAO link you find were all created by me so that when the project kicks off I will already have those names instead of some cybersquatter hijacking the name. when the actual project begins they will all be cleaned up and readied for use.

Nothing much else by way of formality is going on, I just meet with a couple of students from a nearby university talking to them about EA and we meet a few times to brainstorm and share ideas. The effectivedao.org domain has been registered by me pending when the website is setup. EffectiveCauses and the DAO and everything are really in a pre-launch state, nothing at all is setup. 

The one person commenting in support of you looks a bit like an astroturf account (created recently, fake name/PFP).

2. Not sure which person you are referring to, there were quite a number of comments on the other post and a few of them seemed supportive. But I have only one EA Forum account and I don't know and haven't asked  any other person to comment in support of me, I have nothing to do with them. None of the people in EA who actually know my identity have commented so far. But I've shared the post in some communities where I'm active. I've been sharing it.  

The Twitter account you linked to is also quite shallow (few posts/no substantive posts, no followers, etc.), as is your EA Forums account.

The twitter is sparse because: The project is new. This post is my first major post about it in the public. The actual Twitter accounts are all rather new. Everything is new because its still literally an idea in my head. Only now do I plan to start tweeting more regularly. 

I already created new twitter accounts for Effectivecauses and for the DAO but like I explained in the post, I've been having issues completing the registration due to twitter's phone verification issues so I had to use another twitter account of mine and delete all the previous posts so that I would have a twitter to use, albeit temporarily.

For my EA Forum account. I'm new to EA, joined in September or so and posted and commented a couple of times. That's the best I could do. I comment on posts that interest me and I am knowledgeable about.

But again,

If my identity is an issue, I dont mind going through KYC right now, but not publicly.

If you care to spare some of your time I dont mind doing anything you like me to do to verify my identity.

And most importantly, I will like your guidance on how to do this properly. But please don't ask me to kill the idea.

I was referring to Joyce Alvino - not sure if that account is controlled by you, but it is almost certainly a fake name/PFP and it is the only account that is quite supportive of your idea here.

There is no point sharing your identity with me - I'm not looking to contribute financially to your organization. Any anonymity is going to be unacceptable to most donors, and use of multiple fake names (Sally Atkins, Degen Chadwick) comes off as as particularly sketchy.

From this comment it does seem like your heart is in the right place - I was perhaps a bit too extreme in saying that this could damage the reputation of EA. I do really think you should take a step back and reconsider this work. Is your biggest impact going to be in creating something new, or could you work more effectively by leveraging the organizations that already exist in EA?

If you really want to launch a new org, that is not going to happen quickly.  You need a business plan, a clear and concise pitch, a website, information about who you are and what your track-record is, etc.

Thanks again for the time to offer feedback. I really appreciate.

About the Joyce Alvino I've seen their comments but I don't think I know them, but if they are being supportive then that indeed makes me glad.

I agree that the multiple fake names pseudonyms may seem sketchy. That is why I was upfront about the fact that I use pseudonyms a lot online  (mostly because I'm also a digital marketer so using pseudonymous accounts are a common aspect of the trade).  But I will understand if funders don't like that although I believe some won't mind and I believe that when I get my few collaborators all of that will be sorted out.

Thanks for the advice about the organisational setup. I did opt do do this the "crypto way" where anonymity/pseudonyms is almost normal but I understand that this is not exactly a crypto community so I need to do things the "proper" way. Perhaps if this doesn't work out as planned I would pivot to a more traditional process.

I understand that getting a new org is not going to happen quickly and I'm not really expecting it to. This is why I want to first get a handful of people to work with me for 2 to 3 months to do all those proper things and also to advise and chip in ideas. One of the  purposes of the NFT auction I mentioned is to get a handful of collaborators so that we can set things up properly.

I know it may not be quick or easy but I'm just trying to take the first tentative steps towards building the big organization. I'll rather fail than not try at all.

You seem like a thoughtful person who is willing to listen to feedback, which I really appreciate, but I think there is something that you are missing here. Spending time trying to raise a billion dollars takes your time away from doing other things that have a higher chance of success.

I actually consider every mistake as an opportunity to learn and I value every kind of feedback because it helps me to improve.

Also nobody knows everything or as someone once said "I know a lot of things about a lot of things. But I don't know as much about a lot of other things that I wish I knew a lot of things about."

I always take every opportunity to learn from others because I believe it's the fastest way to improve.

Wish I could have someone with your kind of insights on this team, that would really be useful.

All the same I very much appreciate the time you took to read the article and offer your feedback.

If my attempt at this DAO fails, I'll probably come crawling to you for some tips on how to do it differently better.

But right now the ball is already rolling, I'm already promoting the NFT auction everywhere and the outcome of the auction will determine my next move.

Fingers crossed...

Lorenzo Buonanno
Moderator Comment15

We've had two three reports that this might be a scam.
Please be aware of the high base rates of scams in the crypto ecosystem and note that the EA Forum is a place where anyone can post and posts are not vetted.

Hello Lorenzo

It is great that this notice is being given but I believe those reports are not proven although I'm not sure of their content.

it would only be fair if I at least am given an opportunity to redeem my self, given that these "reports" are obviously just assumptions and not proven facts.

There were a couple of issues raised in the comments which I tried to address and in places where I fell short, especially in the area of my identity, I offered to do KYC if need me to prove my authenticity.

Putting out such a notice without concrete verification already biases opinion against me. So even if the reports are unproven suspicions, some people might lean towards them being correct.

If anybody cares, I would love to prove my authenticity in any way required. Perhaps the mod that posted this could investigate further.

All I've wanted to do since I joined this community was to contribute meaningfully but every where I turn I seem to be met with lots of push back and vitriol and its not fair receiving this sort of treatment. The fact that I use a pseudonym doesn't equate to being a scam. This is very disheartening to say the least.

I still have some updates but I wonder how I can keep posting with this sort of notice hanging over my reputation.

I understand why this note would be discouraging. But there are reasons for concern other than your insistence on remaining anonymous and that would not be addressed by verification of your identity alone. You're not established in this community, but are asking people to spend up to $8,000 on a NFT for your project in a week or so. You state there are "people in EA who actually know my identity" but you haven't provided any references of people respected in the community who could vouch for your skills, experience, trustworthiness, and suitability for this project. There does not seem to be a corporation with other accountable people behind this project.

I can't determine if this is a scam or if you simply do not know how to engage and build trust with the community. If it is legitimate, you need a period of sustained engagement with the community about topics that do not involve providing you money. You need to convince people trusted within the community to handle the money during the early stages of the project, rather than asking the community to trust you with ~ six figures. Etc.

Finally, it is not the mods' job to vet whether you are a fit and suitable person for members of the community to be entrusting $400-$8000 to, nor are they really qualified to do that. It is your task to convince the community you are trustworthy and suitable.

Hello DAOmaximalist, thanks for the reply.

Even if this wasn't posted anonymously, or if you verified your identity to me and I did some kind of investigation, I lack the expertise to conclusively prove whether this is or isn't a scam.

Putting out such a notice without concrete verification already biases opinion against me. So even if the reports are unproven suspicions, some people might lean towards them being correct.

I agree that's the case, and just to clarify, I have no proof that this project is or isn't a scam. But I think it's important for readers to know that other readers have strong suspicions, and to keep in mind that the base rate for crypto projects being scams is high.

I still have some updates but I wonder how I can keep posting with this sort of notice hanging over my reputation.

I think it might be a better fit for the forum if you integrate feedback from the comments and reports in your eventual next posts, and would definitely understand if you decide that this is not the right forum to discuss this project.

Reasons I'm suspicious of this:

  1. No clarity about:
    1. identity of the author
    2. identities of the team
  2. No evidence that the author/team have the expertise to:
    1. set up this community
    2. responsibly manage the funds
  3. In general where large amounts of money are involved, it is better to work with well-established systems and people, as this is lower-risk in terms of "unknown unknowns" etc.

While I'm not persuaded this is a scam, the problem is that even well-intentioned ideas can go wrong if the people leading them don't have the expertise to do so.

I have personally influenced decisions involving billions of dollars before, and despite this, I don't think I would have anywhere near the expertise to lead this kind of organization. I certainly would not want to call it "my idea" - I would want to get a team of financial experts involved, so that it would truly be "our idea."

Your points are very valid.

For my identity, I did explain in my other post why I have not used my real name and have actually offered to doxx myself to anybody that cares, just send me a DM.

On the team aspect , I used "my idea" because what I would call a "team" right now wouldn't really pass  as one because the only person with relevant knowledge and  experience  at this time is me. I have interns working with me but they mostly do low level work and brainstorming. 

What I'm actually trying to do with this auction of 172 NFTs is to build a formidable team of collaborators from the EA community who will collab with me in the first stage to set everything up properly. 

I expect / hope those who decide to support and collaborate with me would have the nice-to-have characteristics I listed in my post which includes experts and experienced people in almost every relevant area required for such a project.

With this team I intend to work out all the kinks in the first 2 to 3 months and then launch officially. 

On the matter of well established systems, even though DAOs are still experimental, there are DAOs that successfully control billions of dollars so it is not impossible, but just like you said, it has to be the right team with relevant experience. I do have experience with DAOs and I hope to onboard members who have the relevant experience to properly manage those large sums. 

Many of these things are vastly simplified by using Blockchain.

To me this seems like either a scam or an example of the unilateralist curse. I would urge people not to invest in this. For something like this to have any potential, it has to be started by a team of people 1) with lots of relevant experience / a good public track record and 2) that have been actively involved in the EA community for at least a while (a year or more). Even then I would be skeptical as this seems like something way too complex for a broad audience and as a strong prior I would not touch anything blockchain/crypto/NFT related with a 10 foot pole.

I would recommend, when making a startup, you have a clear idea of what your startup would actually do, which takes into account your own & your company’s strengths & weaknesses & comparative advantage. Many want to make money, those who succeed usually have some understanding of how (even if later they end up radically pivoting to something else).

Thank you for the recommendation. I always try to improve and I find this input valuable.

I did try my best to explain what the whole thing is about and tried to be as clear as possible but maybe I didn't communicate it clearly enough.

Nonetheless, everything I'm doing, both in the DAO and for my EffectiveCauses all center around what I believe are my/our greatest strengths which is community building and managing online communities for which I have many years experience.

But I will sure try to make my points clearer in the future. Thank you very much. Would also love to hear any other recommendations you might have.

This effectively reads as “I think EA is good at being a company, so my company is going to be a company”. Nobody gives you $1B for being a company. People generally give you money for doing economically valuable things. What economically valuable thing do you imagine doing?

For one let me separate EffectiveCauses (my organization) from the DAO (which is an idea from my organization).

The DAO is/will be a separate entity not under my control and  members are supposed to work together to collectively raise the $1 B using various methods which I listed in the above post. 80% of this is meant to give out as grants for EA projects. 20% covers other things including 4% for EffectiveCauses and 8% for admin costs for the DAO. I'm not actually asking anyone to hand over one billion to me!  

Regarding the [economic] importance, for the DAO, the importance is giving out grants to impactful projects selected democratically by DAO members under the guidance of experts.

For my EffectiveCauses organization, the value is as described in the post which is to think up impactful ideas (like this DAO idea) and source for funds to execute and incubate them. Also to serve as a base for setting up  EA communities in countries in Africa (most of which there's little or no EA activity)

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