7. Can’t just raise money and become a DAO, that won’t work. You have to build a product, you have to build a mechanism to keep the product and the community sustainable, and you have to make people love the product and pay for it. Sooner or later, you can let the community take over and let them think about where the product is going.

Given their operating expenses are denominated in USD/fiat, another sustained bear market might force DAOs to sell native tokens at “fire-sale” prices to finance their normal operations. DAOs therefore ought to generate multiple income streams (i.e., protocol revenue and yield from investments) that can cover these operating expenses; but since the... See more

The example brings up an important point: crypto companies don’t have to, and generally shouldn’t, be a DAO from day one. They can evolve. Unlike The DAO, which launched from day one as a DAO, both Uniswap and SushiSwap are going through what Variant Fund’s Jesse Walden coined “Progressive Decentralization.”