Create a DAO in under 5 minutes? You might have thought it is just a catchy slogan. But once you navigate to the DAO Tools, click on the ‘Create DAO’ section, and connect to your wallet, skepticism vanishes. Assigning a name, purpose, and token format is all it takes.

All the other parameters are already set to default and can be adjusted later if needed while creating a DAO. Surprisingly, the entire process takes even less time. Now, you are ready to invite your team into a decentralized autonomous organization where the code reigns supreme but there’s also a Constitution to abide by and mechanisms for dispute resolution.

This marks a significant milestone in Q’s journey toward bridging the traditional and digital realms. Now, let’s dive into the step-by-step process of launching and configuring your DAO.

Create a DAO

To get started, head over to factory.q-dao.tools. Once you have connected your wallet, you can name and describe your DAO, outlining its purpose and audience. Whether you’re creating a community-owned DeFi project or something else entirely, Q DAO Factory offers versatile solutions.

Choose token type

Next, select the type of token you want to create for your DAO from three options: 

  • ERC-20
  • ERC-721 (NFT)
  • or a non-transferable soulbound token (SBT) 

Each option has its own features, so choose the one that best suits your DAO’s needs. As an example, we’ll use the ERC-20 token, which offers voting power based on token ownership. To compare each standard and decide for your case, you can read the complete documentation on How to create a DAO.

Define the name and symbol for your token, keeping character limits in mind. In our case, we chose DD for ‘Demo DAO.’ Set the number of decimals (we recommend 18) and the total token supply according to your preferences.

How to Launch your DAO?

Once all token details are filled out, click “Next” to proceed. You can customize your DAO here with additional modules and expert panels. If you’re new to DAO creation or prefer simplicity, stick with the standard settings for now.

We’ve simplified the process for you, making it quick and straightforward to launch your DAO. After reviewing everything on the confirmation page, click “Submit.” Keep an eye on your wallet interface as you must sign a few messages during the process.

And there you have it! Your DAO is now operational, ready to transform collaboration and coordination. It took only a few quick steps that included naming your DAO, describing its purpose, and choosing a token type. To make it even easier for all DAO creators out here, here is the video tutorial of a step-by step DAO creation.

From here, you can proceed to the DAO Dashboard to manage the DAO. And possibilities don’t end there. Once you get familiar with operating your DAO, you can customize various aspects of the DAO you just created, or come back and deploy a new DAO through the DAO Factory. However, this time customize it to your new needs, using the advanced settings. 

Customize your DAO

We’ve previously discussed the capabilities of DAOs on Q, outlining the three stages:

  1. Getting the Basics Right with Q DAO Factory
  2. Deploying DAO Modules to maintain decentralization
  3. Leveraging Q’s Governance Opt-in Features to Enhance Security

To conclude our overview, let’s examine some custom features which you might have spotted on the confirmation page. The initial setup includes one Expert Panel and a treasury module; they are set up with default values to allow getting started quickly, but are fully customizable to those with a clear visions at the start. Find these by clicking on the “Customize” button.

Again: don’t try to get everything perfect. You can change all parameters later and add more expert panels or DAO modules to the DAO after deployment.

Expert panels of DAOs

Expert panels in Q DAOs are specialized groups of members who contribute expertise to the decision-making process within the DAO. Their primary purpose is to ensure well-informed decisions aligned with project goals. Expert panels can cover various topics like tech upgrades, risk management, or they can aid in ensuring regulatory compliance. Expert Panels can be understood as “roles” or “sub-DAOs” and can consist of one or more appointed members.

Expert Panels can possess on-chain permissions, such as “EP-only” access to DAO modules or parameters exclusively modifiable by them, while non-technically binding rights and responsibilities can be established for them in the DAO Constitution, enforceable off-chain.

You may create multiple expert panels, each customized to represent various stakeholders, similar to advisory or supervisory boards. Precision in naming and describing these panels is vital for smooth DAO operations. Click “Next” to proceed.

Modules

On Q, DAOs can utilize modules to sustain decentralization, steering clear of centralized key control and fixed permission settings. These modules leverage the roles and decision making structures of the DAO and allow applying it to any decision that involves on-chain implementation. Whether it’s sending transactions from a DAO treasury, minting an NFT, or updating smart contracts, modules empower DAOs to adapt and evolve efficiently.

In the DAO Factory, choose from existing Modules or incorporate your own if developed and deployed. Configure the module to designate an Expert Panel to control the module via voting and determine the module name. Lastly, establish initial voting parameters or stick with the default configuration, with the option to update later.

Manage a DAO

Looks like you are mastering it! Q Development aims to make it easy for you to manage your DAO in Web3. Find the relevant section in Q DAO Tools or via a direct link to the DAO dashboard (HQ). Your DAO is uniquely identifiable by its registry address which you saw when signing the deployment transactions. Let’s go over the main elements in the DAO HQ.

DAO Dashboard

Let’s start with the first page of the DAO HQ, the Dashboard

The Constitution Hash

The constitution hash, displayed prominently on the DAO dashboard, ensures transparency and authenticity of the DAO’s constitution by being stored on the Q blockchain. Even a minor change to the DAO Constitution alters the hash completely, making it easy to verify the official document.

Mint Tokens

After creating a DAO, the creator can mint DAO tokens for it, assigning them to any address and determining the quantity to onboard new members. Of course, the token ownership can be transferred, for example to a DAO module to distribute Tokens through the DAO itself.

DAO parameters

Every aspect of the DAO, from smart contracts in the Contract Registry to parameters stored in the parameter contracts, is recorded on-chain, ensuring accountability and openness. All decisions and alterations require DAO-wide voting, without any special individual permissions, truly embodying the principles of decentralized governance.

To explore options for fine-tuning the DAO, check out the comprehensive list of all DAO parameters.

Expert Panel Members

All Expert Panel Members are transparently listed in the Dashboard for easy reference. To add experts to a pane or remove them, membership votes are initiated. DAO members vote to approve or reject proposed experts. 

Voting powers in DAO

Since we’ve mentioned voting, here are the main actions that are needed to add Voting Power and participate in DAO governance. Therefore, go to the “Voting Power” section. You will see the following options

  • Sign Constitution: If the DAO has a constitution, DAO Token Holders need to sign and thereby accept the DAO Constitution to become DAO Members and participate in voting.
  • Approve + Deposit:  Voting power is Essential for creating and voting on proposals. To gain Voting Power you need to deposit DAO Tokens into your Vault to increase your voting weight. Therefore, you need to first approve a transfer of Tokens into the DAO Vault and then in a second transaction deposit tokens into the DAO Vault for on-chain voting. 
  • Withdraw: Withdraw tokens deposited for voting, reducing your voting weight.

In DAOs using fungible ERC20 Tokens, the weight of a vote is determined by the quantity of tokens deposited. However, in DAOs employing NFT or SBT membership, each address is granted one vote, irrespective of the number of tokens deposited.

Locked Tokens During Voting

During voting, tokens will be temporarily locked to prevent governance attacks. If a DAO member participates in voting, their tokens will be inaccessible until the voting process concludes. After a proposal they voted on has passed, they will be able to withdraw their tokens as usual.

Governance

In the Governance section of the DAO HQ, you can create proposals or browse through  proposals that have already been created. Each can have a different status, representing the phase of the voting process, or the outcome of the proposal. Here’s what each status means:

1. Pending: The proposal is ready for voting.

2. Accepted: The voting quorum is met, the majority is met, the voting period is over; yet, it still can be vetoed.

3. Passed: The proposal was accepted, not vetoed, but not yet executed.

4. Executed: The proposal passed and was already implemented.

5. Obsolete: The proposal passed, but expired before execution. It cannot be implemented anymore.

6. Rejected: The proposal failed to meet quorum, majority, or was vetoed. It cannot be implemented.

To create a proposal, a DAO member needs to deposit at least one DAO Token into the vault as explained above. Proposals can be for DAO Token Holders or Expert Panels and may be used for general updates, constitution changes, or other types of votes, for example to interact with DAO modules.

When selecting an existing proposal, you’ll see the proposal parameters like Quorum, Majority, Voting Duration. You will also see the proposal description and any parameters that should be changed, if applicable. In DAO Module proposals, there can be functions to be directly called on-chain once the proposal is executed.

For more details, explore the proposal section of the dashboard.

How to get your DAO started?

If you are looking for a deep dive into this topic or have a specific question, please visit our DAO docs page. Besides, if you’re looking for a fun way to learn more, you can participate in the MetaSchool course on building a Gamer DAO on the Q blockchain with Solidity.

Curious about Q? Visit this page to learn more: https://q.org/about-q. For any questions or assistance along the way, feel free to join our Discord or Telegram channels. Our supportive community is always available to assist you.