The Rise of DAOs and the Multiple Implications for DeFi Projects

DPAD Finance is the first data-driven launchpad in the crypto industry that helps crypto startups raise guaranteed funds from VCs through ICO, IDO, as well as Grants. 11 projects have been selected for DPAD’s cohort sessions and the series of virtual trainings for selected projects and their team members is meant to make the products market-fit and investment-worthy before VCs funds injections. DPAD’s YCombinator held its 5th session- focusing on DAOs and Web3 projects.

A DAO or decentralized autonomous organization is a digital group of individuals with no central leadership. It is governed by a set of rules encoded on a blockchain. A DAO is collectively owned and managed by members, and has a built-in treasury that can only be accessed with the approval from members.

DAO vs Non-DAO

DAO projects are not necessarily more successful than non-DAO projects. The success of a project depends on several factors, such as the product quality or service offered, the team’s strength, the level of adoption and support, and the overall market condition.

However, some DAO projects have been successful due to the following reasons;

  1. Decentralized governance: DAOs allow for a more democratic and transparent decision-making process, which increases trust among participants and stakeholders.
  2. Aligned incentives: DAOs align the incentives of participants, ensuring that everyone is working towards common goals, which can result in a more efficient and productive organization.
  3. Stronger communities: DAOs create a sense of ownership and investment among participants, leading to a more engaged and dedicated community of supporters.
  4. Resilience: DAOs can be more resistant to external forces, such as censorship or interference, which can help to ensure the long-term success and sustainability of the project.

DAO Function & Lists

A typical DAO offers some of the following services;

  • Token services {token design, token distribution, and market making}
  • Governance {proposal discussion, voter delegation, voting, and proposal execution}
  • Treasury management {asset allocation, payments, and financial reporting}
  • Risk management {simulations and asset analysis}
  • Development {security audits, grants, and bounties}
  • Operations {fullstack platforms, project management, and legal}
  • Community {event sponsorship, hackathons, membership, meme contests, and communications/translations}
  • Growth {education, research, and user onboarding}

Examples of DAOs

Examples of DAOs include;

  • Sushi Studios: Sushi Studios is Sushi’s decentralized incubator that will license the brand to launch independently-funded projects to support ecosystem growth without burdening the DAO treasury. Sushi will launch products like Shoyu, an NFT marketplace for promoting creator-first utility & features in Q1 of 2023, a DEX platform, and several other products. These products will help increase Sushi’s brand without hindering the DAO core features. Sushi’s governance features a dashboard that displays the project’s budget, wallets, and audit results for Treasury expenditure to showcase transparency.
  • Aave Grants DAO: Aave Grants DAO is a community-led grants program, focused on growing a thriving ecosystem of contributors within Aave through funding ideas, projects, and events that benefit the ecosystem. Through the DAO, Aave Grants has funded several projects and awarded several grants to developers, such as Questbook, Minke, and Forta Protocol.
  • Olympus Grants Program: The purpose of this grant, governed by a community, is to bootstrap Olympuss’ wider ecosystems within a clearly defined framework. All Olympus grants will be directed to projects and contributors that directly advance the ecosystem in ways which synchronize with emergent priorities of the DAO.

DAO Builder Tools

The following are important sites you can use to build, manage, and grow a DAO:


DAOs are all about creating an inclusive community that sacrifices individual gains for the collective good. With this, we see DAOs rising in the future and playing a crucial part in the adoption and success of projects. However, it is important to know that DAO projects are still new, and there are ongoing challenges surrounding the best practices for governance. As such, the success of DAOs is uncertain.

About DPAD Finance

DPAD Finance is the first of its kind in the Web3 industry- unifying the total fundraising process for startups in crypto after the incubation process has been completed. In other words, DPAD’s YCombinator is Web3’s foremost “Incubation + Launchpad pair” whereby the Launchpad is data-driven and transparent in all dimensions. We are open to support from different blockchain protocols and foundations with mutual terms and benefits to derive. Communications from VCs and blockchain foundations should be forwarded to So, join this voyage and explore.

DPAD’s YCombinator Agenda

Website |Telegram |Announcement |Youtube |Twitter | Whitepaper |Token Contract| DPAD on Bloomberg.



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