OpCo – A DAO-adjacent Entity for Strategy Execution

Proposals
11

This proposal is a good idea, through the creation of a company called OpCo, to solve some of the “stuck points” in the implementation of the DAO, such as the lack of a clear person in charge, the decision-making chain is too long, and it is difficult for external contributors to join in a timely manner, etc. OpCo’s role is to make these processes smoother, so that the DAO can be more efficient in the implementation, negotiation, contracting, etc., to ensure the smooth implementation of the strategy. The role of OpCo is to make these processes smoother, so that DAOs can be more efficient in execution, negotiation, contracting, etc., and ensure the smooth implementation of strategies.
From this, we can see that the proposal is well-intentioned, aiming to improve the operational efficiency of DAOs and enhance their attractiveness and competitiveness. However, in actual operation, if the management of OpCo is not in place or the use of funds is not transparent, resources may be wasted. Seeing the above comments, people are most concerned about the management of OpCo’s funds. The proposal plans to allocate 34 million ARBs to OpCo, of which 10 million ARBs will be released first and the remaining 24 million will be distributed gradually over the next 24 months. While the DAO can oversee OpCo, OpCo has a high degree of autonomy, particularly in recruiting and contracting personnel. This raises concerns as to whether OpCo will be able to use the funds efficiently and transparently. If the market fluctuates, will OpCo be able to operate in a stable manner?
The DAO community needs to keep a watchful eye on OpCo’s operations to ensure that it is delivering the value it is intended to deliver, rather than becoming a “black hole” for funds.
Personally, I have some suggestions to improve the proposal

  1. Regular financial reports, transparency of funds so that everyone can track the use of funds, and budget reports.
  2. OpCo has a high degree of independence, especially in recruitment and contracting, and it will be important for DAO to monitor and audit key positions. Need to have a system of rules
  3. contingency measures need to be put in place to protect resources from being wasted. the structure needs to be very simplified and clear. the DAO should need to have the ability and constraints of a veto, and have contingency plans in place at all times if it doesn’t do a good job.
  4. If the proposal is adopted, there should be regular and periodic evaluation, including but not limited to people, use of funds, budget, etc., which can be in the form of scoring.
  5. no rules, need to have KPi system, clear performance indicators, such as implementation progress, financial efficiency, etc., to facilitate the DAO members to assess the performance of OpCo, to avoid waste of resources, it is recommended that OpCo to achieve a specific goal or KPIs when the gradual release of funds to reduce the risk of funding to ensure that each step meets expectations!