Nantan DAO Chronicles (Part II): Challenges of Goals, Incentives, and Governance

What is the goal?

"Promote the integration of rural construction and Web3."

Nantang DAO is committed to promoting mutual learning and exchange between rural construction and the Web3 community by transforming cultural courtyards into rural bases and integrating with local cooperatives to establish a sustainable work point system. However, there is a significant gap between ideals and reality.

Currently, the Nantang DAO resembles a rigid transplantation of the online DAO model to rural areas, failing to closely integrate with the fundamental needs of the countryside, and its goal setting is also relatively scattered. Democratic decision-making is limited to a small internal scope and has not widely connected with the villagers. Most members exhibit characteristics of high mobility and short active cycles, weakening their deep ties to the countryside.

The diversification of goals leads to difficulties in resource allocation. Some members tend to favor commercial exploration, while others insist on community building. This divergence results in resource dispersion and even competition.

Incentives and Circulation Experiment: Nantang Bean

In August 2024, Nantang Bean will officially be issued, with an initial issuance of 10 million pieces, pegged 1:1 to the Renminbi. It serves as a record of contributions and a certificate of voting rights, aiming to enhance community participation.

However, the hourly wage incentive mechanism has many issues. The admission standards are unclear, the evaluation criteria are singular, and the peer review mechanism has failed. The "equal pay for equal work" model is also questioned, making it difficult to reflect differences in work quality.

To increase circulation scenarios, the Nantung DAO has implemented the "New Year Goods Debt and Work Points Promotion Plan." Although the technical threshold is high, this experiment reflects the care of community members and provides practical assistance to local villagers.

Is it decentralized enough?

The Nantang DAO is facing external pressure from government regulation. In terms of sources of revenue, it is highly dependent on a single funding provider, raising concerns about financial independence.

The distribution of voting rights is uneven, with a few "whale" members holding a large amount of voting power. The voting mechanism also has vulnerabilities, such as allowing informal members to participate in decision-making. These issues may lead to decisions being manipulated by a small number of people.

In the future, the Nantang DAO needs to further optimize the voting mechanism design, including restricting voting qualifications and introducing multi-stage reviews, to reduce centralization risks and ensure long-term stability and fair autonomy.