Many have predicted that DAOs will eclipse centralized organizations.

How does that happen, and how do DAOs successfully scale to that size?

Through SubDAOs 🔽

Most DAOs are structured as follows:

- Treasury
- Vote
- Chat
- Blog

DAOs generally feature one primary asset, representing governance and ownership in the group.

There are many types of DAOs - all sharing a few goals in common.

- Attract new members.
- Maximize value
- Empower governance
- Create a secondary market

DAO Token = (NAV of Community Treasury) x Community Sentiment

SubDAO - a DAO created by, or spun out of, a parent DAO.

SubDAOs create their own foundation and ownership structure - all while tying value back to the originating entity.

Early examples of SubDAOs:

@FingerprintsDAO $PRINTS > @theRAWdao $RAW
@PleasrDAO $PEEPS > @ownthedoge $DOG
@seedclubhq $CLUB > @mClubDAO $MCLUB

DAOs with their own token create new tokens to represent ownership in the SubDAO.

SubDAOs allow DAOs to scale by:

- Creating multiple sub-missions and teams.
- Increasing the NAV of the treasury.
- Increase the likelihood for governance.
- Creating additional demand for tokens

DAOs will own a percentage of all its SubDAOs.

Not all working groups should become SubDAOs.

Some general principles:

- Staff - Are there full-time contributors?
- Profit - Is it generating consistent revenue?
- Novelty - Is it uniquely distinct?
- Sustainability - Can it survive on its own?

If yes, you've got a SubDAO.

To create a SubDAO, follow the steps depicted below.

DAOs should own between 5-15% of a SubDAO token.

Split revenue upon distribution.

Give airdrops and early access to members.

As the SubDAO grows, both parties win.

DAOs do not win by having 100,000 members join overnight.

DAOs win by creating dedicated pockets of culture that create ongoing value for its members.

SubDAOs offer a scalable growth solution for all DAOs to come.

To DAO operators - embrace the request for independence.

DAOs are not meant to house everything under one roof.

To those looking to join their first DAO, here’s a list on where to get started.

This is How to SubDAO.

Full post on @viamirror 🪞
coopahtroopa.mirror.xyz/7bfK9st2mvhxlla4XKotRjetq5-YhaiwqRwS8DhkD-o

Special thanks to @nicogsworld for the graphics and to @ljin18 @thattallguy @gaby_goldberg @jessewldn and @0x_Lucas for their feedback.

If you're building a SubDAO - please reach out!

Gm