Shoutout to the Nouns community for proposing to name the Nouns DAO Smart Contract.
NounsDAO transitioned from a Cayman Islands foundation to a DUNA.
Uniswap DAO also recently established its DUNA.
Reasons for moving away from the Foundation Model to Duna
Some large token holders were concerned about being seen as a partnership and the potential legal risks.
High-net-worth individuals didn’t want to put their personal assets at risk
There was a fork mechanism in Nouns, and some DAO members considered legal action against the founders and the foundation for letting the fork happen.
The Duna structure allowed the founders to step back and absolve themselves of direct involvement.
The Duna provides clarity and some degree of indemnification for members and administrators.
The foundation model lacked clarity and transparency.
With the Duna model, there’s encouragement for transparency because the DAO owns it, granting members the right to information, unlike the past where there was no inherent right to documentation.
Biggest Challenges and Improvements:
Transitioning from a foundation with closed-door operations to a transparent DAO model.
Getting information out, ensuring the community feels heard, and having constructive conversations were crucial.
Setting expectations and addressing community concerns, like providing IDs and tax information, was important.
Weekly communication with community members was not enough, and including them in decision-making would have been better.
Bylaw working sessions could have improved community involvement.
Proving the Duna’s existence as a legal entity to the non-crypto world was challenging.
Obtaining a bank account took several months.
Paying bills out of personal accounts and getting reimbursed was tricky.
They hope to share documentation with the ENS DAO to make the DUNA model more palatable for the community.
Under the DUNA model, the DAO is responsible for taxes.
They had to turn off a few client IDs that were receiving incentives because they refused to provide the tax information.
Some community members were very cyberpunk and didn’t want to play the tax game at all, and a lot of those members left during the transition.
From a DAO’s perspective, basically nothing has changed other than the fact that when a proposal is looking like it’s going to pass, they’re going to reach out and ask you to complete their KYC workflow.
One other change is that sometimes proposals are filtered through a tax lens, which was not done previously.
Depending on the proposal, the accounting/tax team may need to be consulted to assess the ramifications.
3. General DAO Updates Section
3.1. Upcoming Proposals
ENS contract naming season proposal is moving forward.
Final details are being organized, and the tally draft is ready for review.
Expect 2 onchain proposals this week:
Kpk: More permissions for the endowment to manage the treasury and allocate different protocols.
ENS contract naming season.
4. Open Discussion
Brief discussion on whether ENS DAO should participate in governance in other DAOs, and how we should handle token airdrops from other projects.