Fan DAO

The primary mechanism for membership and voting power. Governance tokens represent a stake in the DAO and are used to:

• Vote on proposals (e.g., fund a new project, change membership rules).
• Signal community sentiment via snapshot votes.
• Distribute ownership and influence proportionally to engagement.

Examples include $PEOPLE (ConstitutionDAO) and $JENNER (Kendall Jenner's 818 Tequila DAO).

A multi-signature wallet or smart contract vault that holds the DAO's pooled capital (often in stablecoins or native tokens). Funds are allocated based on member-approved proposals for:

• Funding creator projects or collaborations.
• Purchasing assets (e.g., rare NFTs, physical memorabilia).
• Covering operational costs.

Transparency is enforced on-chain, allowing any member to audit transactions.

The formal process for collective decision-making. A typical workflow involves:

• Proposal Submission: A member drafts a proposal (e.g., "Fund a music video").
• Discussion Phase: Community debate occurs on forums like Discord or Discourse.
• Voting: Token holders cast weighted votes on-chain or via snapshot.
• Execution: Approved proposals trigger automatic fund disbursement via smart contracts.

Voting models include token-weighted, quadratic, or conviction voting.

Using NFTs or Soulbound Tokens (SBTs) to grant exclusive benefits, creating a layered membership structure. This can include:

• Access to private channels, live streams, or AMAs.
• Early or exclusive merchandise drops.
• Royalty sharing from commercialized projects.
• Proof-of-Attendance tokens for real-world events.

This aligns incentives, rewarding the most active supporters.

The legal structure that interfaces with the off-chain world, crucial for contract enforcement and limiting member liability. Common forms include:

• Limited Liability Company (LLC): A U.S. entity where the DAO controls the LLC (e.g., Wyoming DAO LLC).
• Foundation: A non-profit entity often used in jurisdictions like Switzerland or the Cayman Islands.

This wrapper allows the DAO to own IP, hire staff, and comply with regulations.

The suite of software and platforms that enable day-to-day operations and communication. The standard stack includes:

• Discord/Snapshot: For discussion and off-chain signaling.
• Gnosis Safe: A popular multi-sig for treasury management.
• Tally or Sybil: For on-chain governance interfaces.
• Coordinape: For contributor reward distribution.

These tools minimize the need for centralized leadership.

Fan DAOs use on-chain voting to give token-holding members direct influence over key decisions. This can include:

• Content Direction: Voting on album concepts, merchandise designs, or story arcs.
• Resource Allocation: Deciding how treasury funds are spent on projects, tours, or charitable donations.
• Partnerships & Collaborations: Approving brand deals or co-creation opportunities with other artists or entities.
• Protocol Upgrades: Governing the DAO's own smart contracts and membership rules.

A shared treasury, funded by membership dues, NFT sales, or revenue shares, acts as the DAO's financial backbone. It enables:

• Project Funding: Pooling capital to commission exclusive artwork, fund a documentary, or sponsor an athlete.
• Revenue Sharing: Distributing a portion of commercial proceeds (e.g., streaming royalties, ticket sales) back to token holders.
• Grant Programs: Providing micro-grants to community members for creating fan art, organizing events, or developing tools.

DAO membership tokens or NFTs function as access passes to gated digital and physical spaces. Examples include:

• Private Communities: Access to exclusive Discord channels or forums for direct interaction.
• Digital Collectibles: Receiving limited-edition NFTs, early song snippets, or behind-the-scenes content.
• IRL Events: Priority ticket access, VIP meet-and-greets, or invitation-only fan gatherings.
• Co-creation: Participating in interactive experiences like deciding a setlist or contributing to a collaborative artwork.

Some advanced Fan DAOs explore shared ownership or stewardship of intellectual property. This can involve:

• IP Franchises: A community collectively guiding the expansion of a fictional universe (e.g., characters, stories).
• Licensing Rights: The DAO holding licensing rights to certain assets, allowing members to vote on commercial use.
• Derivative Works: Establishing clear, permissionless rules for fans to create and monetize derivative content, fostering a richer ecosystem.

The core asset that grants voting power and membership rights. Holders can propose and vote on key decisions, such as:

• Fund allocation for creator projects or investments.
• Governance parameters like proposal thresholds and voting periods.
• Treasury management and revenue distribution.

Examples include $PEOPLE (ConstitutionDAO) and artist-specific tokens.

A multi-signature wallet or smart contract vault that holds the DAO's pooled capital, typically in stablecoins or native tokens. This treasury is transparent and verifiable on-chain. Funds are disbursed only via successful governance proposals, ensuring collective control over financial resources for supporting creators, funding projects, or making investments.

The formal process for enacting changes or allocating funds. It typically involves:

• Proposal Submission: A member stakes tokens to submit a formal action.
• Voting Period: Token holders cast weighted votes based on their stake.
• Execution: Successful proposals are automatically executed by smart contracts.

Common frameworks include Snapshot for gasless voting and Compound's Governor for on-chain execution.

Structures that define participation levels, often using Soulbound Tokens (SBTs) or non-transferable badges to represent reputation. Tiers can grant different rights:

• Token-gated content and exclusive experiences.
• Voting weight multipliers for long-term contributors.
• Role-based permissions within the DAO's tools (e.g., Discord, forums).

This moves beyond pure financial stake towards contribution-based governance.

A traditional legal structure (like an LLC or Foundation) that interfaces with the off-chain world to provide limited liability for members, handle tax compliance, and sign legal contracts with creators, venues, or vendors. This entity is controlled by the DAO's on-chain governance, bridging decentralized governance with real-world legal requirements.

Smart contract standards that enable the creation and management of fan assets. Key standards include:

• ERC-20: For fungible governance and utility tokens.
• ERC-721 & ERC-1155: For non-fungible tokens (NFTs) representing exclusive memberships, artwork, or collectibles.
• ERC-5484: For Consensual Soulbound Tokens, enabling non-transferable proof of fandom or achievement.

These standards ensure compatibility across wallets, marketplaces, and other DAO tools.

The community treasury is a pooled fund, typically a multi-signature wallet, controlled by the Fan DAO. It holds assets (like native tokens, ETH, or stablecoins) generated from membership fees, NFT sales, or merchandise. Spending from the treasury requires a community vote.

• Primary Use: Funding projects, paying creators, sponsoring events, or investing in community assets.
• Security: Often managed via Gnosis Safe or similar smart contract wallets.

On-chain governance is the process where token holders submit, debate, and vote on proposals directly through blockchain transactions. Votes are weighted by token holdings (token-weighted) or delegated (representative). This ensures transparent and immutable record-keeping for all Fan DAO decisions.

• Typical Flow: Proposal → Voting Period → Execution via Smart Contract.
• Tools: Snapshot (off-chain signaling) and Tally (on-chain execution) are widely used.

A Token-Curated Registry is a decentralized list maintained by token holders who are economically incentivized to curate quality entries. A Fan DAO might use a TCR to manage an approved list of collaborators, merchandise vendors, or content creators, with the community voting on additions or removals.

• Mechanism: Stake tokens to add or challenge listings; lose stake for poor submissions.
• Purpose: Ensures quality and community alignment for endorsed partners.

The model faces significant operational and conceptual hurdles:

• Voter Apathy: Low participation rates can lead to governance by a small, concentrated group.
• Legal Uncertainty: Unclear regulatory status for securities, taxation, and liability.
• Coordination Overhead: The inefficiency of achieving consensus for numerous, small decisions.
• Treasury Management Risk: Exposure to volatility and the complexity of managing a decentralized asset portfolio.

Understanding Fan DAOs requires familiarity with adjacent Web3 constructs:

• Social Tokens: Tokens issued by creators or communities that often form the basis for DAO membership.
• Decentralized Autonomous Organization (DAO): The overarching category of member-owned organizations without centralized leadership.
• Non-Fungible Token (NFT): Often used as a proof-of-membership or access pass within a Fan DAO.
• Tokenomics: The study of the economic design and incentives of a token system, crucial for sustainable DAO governance.