The Top Ten Rules for Building an Efficient DAO

1. Gael's Law: From Simple to Complex

Effective complex systems often originate from simple and efficient systems. When designing the minimum viable product of a DAO, this principle should be followed: start simple and evolve gradually.

2. Pareto Principle: Focus on the key 20%

Typically, 80% of results come from 20% of efforts. In the early stages of a DAO, it is important to focus on the core functions and tasks that can have the greatest impact.

3. Parkinson's Law: Set deadlines reasonably

Work often expands to fill the available time. Set appropriate deadlines for DAO projects, neither too tight nor too loose, to maintain high efficiency.

4. Goodhart's Law: Carefully choose indicators

When a certain metric becomes a target, it often loses its significance as an effective metric. Special attention should be paid to this when designing the incentive mechanisms and evaluation systems of a DAO.

5. Brooks's Law: Keep the team small.

Adding personnel to projects that have already been delayed may further set back their progress. The DAO should strive to maintain a moderately sized and efficient core team.

6. Moore's Law: Embrace Technological Advancement

The technical capabilities double every 18-24 months, while costs continue to decrease. The DAO should actively leverage this trend to continuously update its technology stack and improve efficiency.

7. Metcalfe's Law: Pursuing Network Effects

The value of the network is proportional to the square of the number of users. The DAO should strive to expand its ecosystem and attract more participants to achieve exponential value growth.

8. Dunbar's Number: Respecting Cognitive Limits

The number of stable social relationships that humans can maintain is limited. When expanding the scale of a DAO, this limitation should be taken into account to design the organizational structure and communication mechanisms reasonably.

9. Unix Philosophy: Modular Design

Each program should focus on doing one thing well and be able to work in conjunction with other programs. The governance mechanism and technical architecture of the DAO should follow this principle, pursuing modularity and composability.

10. Conway's Law: Organizational structure influences system design

System design often reflects the communication structure of the organization. DAOs should be aware of this and reference best practices in software development when designing governance structures, paying attention to avoid the limitations of the overall structure.