Web3 | DAOs | Blockchain
The One Size DAO Myth: How Project Needs Differ Based on Stage & Maturity
When it comes to how to best run a Web3 project or DAO (decentralized autonomous organization), many people think there is a one size fits all solution for growth and expansion.
However, this couldn’t be further from the truth as DAOs have specific needs based on where they are in the development cycle. For example, a new organization with 5 members has vastly different priorities than a project with hundreds of contributors that has been around for multiple months.
In this article, we will go over how to differentiate the 4 stages of Web3 projects, identify the specific needs, and detail how Lomads can assist projects at every stage.
Project Stages & Main Issues Faced
The 4 major project stages are:
Stage 1 — Hatching: The earliest project stage, Hatchings often have a well-defined end goal, but little clarity about processes and long-term stability.
Stage 2 — Nestling: This stage consists of collectives and startups with strong workflows. Nestlings usually have received small funding and have some established processes, but lack clarity on long-term financial viability.
Stage 3 — Juvenile: Juvenile projects have an understanding of financial viability, and have established processes in place. Additionally, they have adequate funding or sources of revenue.
Stage 4 — Adult: As the final stage for projects, Adult projects are made up of paid contributors and team members. Their workflow is verified, their smart contracts are audited, and they have secure and growing sources of revenue. They also tend to become incubators for other projects and startups.
New projects face two major roadblocks when starting out: incorrectly identifying needs and prioritizing development steps.
When starting out, it’s easy to look at the leading projects in the space and try to emulate them; however, this is actually harmful to the project.
This problem is only increased by many influencers and media outlets in Web3 who focus specifically on large projects; they tend to talk about DAOs in relation to the largest projects in the space instead of breaking them down by the stage.
By doing this, small and mid-sized organizations aren’t factored in which leads many startups to misidentify needs and next steps.
The other main issue for organizations comes from how they prioritize development, specifically when it comes to decentralization. Since decentralization is the first letter in DAO, many assume it should be the focus of all projects.
This is misleading as if a project isn’t organized or autonomous, then attempting to be decentralized will only lead to more problems. Instead, projects need to make organizing their processes and then automating them their primary objectives.
And this is exactly what Lomads can help with.
How Lomads Helps Early Stage Projects
Lomads first came to be by noticing this crucial blind spot in the Web3 and DAO space.
Lomads is geared towards Nestling stage projects; these projects have received initial funding, built a core team, and acquired contributors. Their main needs revolve around having efficient workflow tooling to organize and automate processes.
By using Lomads’ workflow automation, Nestling projects can organize their workspaces and tasks, automate treasury and payments management to save time and money, and set up processes to reward early contributors with future funding.
In order for Web3 to continue growing and bridge the gap of Web2, it’s integral for projects and DAOs to be aware of their organization stage and prioritize their needs accordingly.
Additionally, to reach an efficient and effective level of decentralization, DAOs need to focus on being organized and autonomous before they decentralize their processes. This allows for a smoother, constructive transition for both the project and its contributors.
Remember, before you try and decentralize, be sure you are well-organized!
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Written by Lomads with major contributions from Co-founder, Nishant Bhaskar
