The Top Ten Rules for Building an Efficient DAO

1. Simple Start: Gael's Law

Effective complex systems often arise from simple and effective systems. When designing the minimum viable product for a DAO, one should start simple and gradually evolve to complexity.

2. Focus on the Key: Pareto Principle

About 80% of results come from 20% of core efforts. In DAO design, it is important to identify and focus on the most critical 20% of elements to achieve maximum effectiveness.

3. Reasonable Planning: Parkinson's Law

Work often expands to fill the available time or budget. Set moderate deadlines for DAO projects, neither too lenient nor too urgent, to ensure efficient completion.

4. Caution in Quantification: Goodhart's Law

When a certain metric becomes a target, it often loses its effectiveness as a valid metric. This is particularly important to note when building a DAO system, especially when it involves complex tasks such as fundraising for public goods or identity verification.

Five, Streamlined Team: Brooks' Law

Adding manpower to delayed projects may further delay progress. The DAO should maintain a streamlined team size to avoid over-expansion.

Six, Embracing Technological Advancement: Moore's Law

The rapid development of technology provides opportunities for innovation. DAOs should actively leverage the benefits brought by technological advancements to create value in a rapidly changing environment.

7. Pursuing Network Effects: Metcalfe's Law

The value of a network is proportional to the square of the number of users. The DAO should focus on building networks and ecosystems that can generate exponential value.

Eight, Cognitive Social Limits: Dunbar's Number

The number of stable social relationships that humans can maintain is limited. Unless necessary, the DAO should keep a small team size or pay attention to establishing appropriate trust mechanisms when expanding.

9. Modular Design: Unix Philosophy

Focus on performing a single task well to ensure good collaboration between components. The DAO should adopt a modular design concept to build a system that can be flexibly combined.

Ten, Structural Impact Design: Conway's Law

The communication structure of an organization will affect the system it designs. The DAO should be designed in a manner similar to software development, paying attention to the scalability of the overall architecture.