The Ten Rules for Building a DAO

1. Simple and Effective Principle

Effective complex systems always evolve gradually from simple and well-functioning systems. When designing a minimum viable product, this principle should be followed, starting with simplicity and gradually improving.

2. Pareto Principle

About 80% of the effects come from 20% of the key inputs. When planning a minimum viable product, one should focus on the core elements that can have the greatest impact.

3. The Law of Work Extension

Work often expands to fill the available time or budget. Therefore, it is important to set appropriate deadlines - neither too tight nor too loose.

4. The Law of Indicator Differentiation

When a certain metric becomes a goal, it often ceases to be a good measure. When designing complex systems like public product crowdfunding or authentication (, this must be considered carefully.

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) 5. The Paradox of Human Investment

Increasing manpower in already delayed projects often leads to further delays. Maintaining a streamlined team size is a wise move.

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) 6. Law of Technological Progress

The number of transistors on integrated circuits doubles approximately every two years, while costs are halved. This exponential technological advancement creates immense value growth opportunities in the tech sector.

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) 7. Network Value Law

The value of the network is proportional to the square of its number of users. When building a system, one should focus on creating exponential value growth.

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) 8. Social Relationship Limit

The number of stable social relationships that humans can maintain is limited. When an organization scales, it is necessary to consider the optimal trust models at different levels.

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) 9. Modular Design Principles

A good system should focus on doing one thing well, be able to work collaboratively with other systems, and produce outputs that can serve as inputs for other systems. Building a modular software architecture is essential.

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) 10. The Law of Organizational Structure Mapping

The systems designed by an organization often reflect its own communication structure. When designing an organization, one can draw on methods from software development, but attention must be paid to the limitations of the overall structure's scalability.

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