Ten Guiding Principles for Building an Efficient DAO

1. Gael's Law: From Simple to Complex

Effective complex systems often stem from simple and reliable foundations. When designing a minimum viable product, one should start simple and gradually refine the features, rather than pursuing complexity from the outset.

2. Pareto Principle: Focus on Core Values

About 80% of the results come from 20% of the key inputs. When formulating DAO strategies, it is important to identify and focus on the most influential core elements to achieve optimal resource allocation.

3. Parkinson's Law: Allocate Time Reasonably

Work often expands to fill the available time. To improve efficiency, appropriate deadlines should be set, allowing enough time while avoiding overly lenient deadlines that can lead to reduced efficiency.

4. Goodhart's Law: Set Indicators with Caution

When a certain metric becomes the target, it may no longer be an effective measure. When designing incentive mechanisms, it is essential to comprehensively consider potential side effects to avoid negative outcomes caused by a single metric.

5. Brooks's Law: Keep Teams Lean

Adding manpower to delayed projects may further delay progress. The DAO should focus on maintaining a lean and efficient core team rather than blindly expanding in size.

6. Moore's Law: Embracing Technological Advancements

The speed of technological advancement often exceeds expectations. DAOs should actively embrace new technologies, leverage the opportunities brought by technological innovations, and continuously optimize their operations.

7. Metcalfe's Law: The Importance of Network Effects

The value of a network is proportional to the square of the number of users. DAOs should focus on building strong network effects to achieve exponential growth in value by expanding their user base.

8. Dunbar's Number: Reasonable Planning of Organizational Structure

The number of stable social relationships that humans can maintain is limited. When a DAO expands, it should consider this cognitive limitation, design its organizational structure reasonably, and ensure effective communication and collaboration.

9. Unix Philosophy: Modular Design

Focus on performing a single task well, ensuring compatibility between different modules, and designing a composable system. DAOs should adopt a modular approach to build their infrastructure and workflows.

10. Conway's Law: Organizational Structure Affects System Design

System design often reflects the communication structure of an organization. DAOs should be aware of the impact of organizational structure on their outputs and adopt a flexible team structure to promote innovation and efficiency.