Creating a DAO

Step-by-step guide to setting up a DAO for your NFT collection.

Prerequisites

Requirements

• ✅ Collection Ownership: You must be the collection creator/owner

• ✅ Smart Contract Support: Collection must support DAO functionality

• ✅ Community Size: Recommended minimum of 50 active holders

• ✅ Governance Plan: Clear vision for community decision-making

Preparation Steps

1. Assess Community Interest: Survey holders about DAO participation

2. Define Governance Scope: What decisions will be community-driven?

3. Set Parameters: Voting periods, quorum requirements, etc.

4. Legal Considerations: Understand regulatory implications

Step-by-Step DAO Creation

1. Access Collection Management

// Navigate to your collection
1. Go to collection page
2. Click "Manage" tab (owner only)
3. Verify ownership status
4. Access "DAO" section

2. Initiate DAO Creation

1. Click "Create DAO": Located in collection management

2. Review Requirements: System checks eligibility

3. Confirm Creation: Approve transaction in wallet

3. Configure DAO Parameters

Basic Settings

{
  "daoName": "My Collection DAO",
  "description": "Community governance for [Collection Name]",
  "website": "https://collection-website.com",
  "socialLinks": {
    "twitter": "@collection",
    "discord": "discord.gg/collection"
  }
}

Governance Parameters

{
  "votingPeriod": 604800,        // 7 days (in seconds)
  "quorumPercentage": 10,        // 10% of total NFTs must vote
  "proposalThreshold": 5,        // 5 NFTs needed to create proposal
  "executionDelay": 86400,       // 24 hours before execution
  "earlyExecution": false        // Allow immediate execution for urgent proposals
}

Treasury Settings

{
  "treasurySplit": {
    "community": 70,             // 70% community controlled
    "creator": 20,               // 20% creator reserved
    "development": 10            // 10% development fund
  },
  "proposalTypes": [
    "treasury",                  // Fund allocation
    "parameter",                 // Governance changes
    "contract"                   // Smart contract updates
  ]
}

4. Deploy DAO Contract

1. Review Configuration: Double-check all parameters

2. Estimate Costs: Gas fees for deployment

3. Confirm Deployment: Sign transaction

4. Wait Confirmation: ~30 seconds on Hyperliquid

5. Post-Deployment Setup

1. Verify Deployment: Check DAO contract address

2. Update Collection: Link DAO to collection

3. Community Announcement: Notify holders of DAO launch

4. Documentation: Provide governance guidelines

DAO Configuration Options

Voting Parameters

Voting Period

• Short (3 days): Fast decision-making, lower participation

• Medium (7 days): Balanced approach, good participation

• Long (14 days): Maximum participation, slower decisions

Quorum Requirements

• Low (5%): Easy to reach, but low legitimacy

• Medium (10%): Balanced participation requirement

• High (20%): High legitimacy, harder to achieve

Proposal Types

Treasury Proposals

{
  "type": "treasury",
  "title": "Marketing Campaign Fund",
  "description": "Allocate 5 HYPE for social media advertising",
  "amount": "5000000000000000000",  // 5 HYPE in wei
  "recipient": "0x1234...abcd",
  "justification": "Increase collection visibility"
}

Parameter Proposals

{
  "type": "parameter",
  "parameter": "quorumPercentage",
  "newValue": 15,
  "justification": "Increase community participation requirements"
}

Contract Proposals

{
  "type": "contract",
  "action": "upgrade",
  "contractAddress": "0x5678...efgh",
  "newImplementation": "0xabcd...1234",
  "justification": "Security improvements"
}

Advanced DAO Features

Staking Integration

• NFT Staking: Lock NFTs for boosted voting power

• Reward Distribution: Staking rewards for participants

• Lock Periods: Time-based commitment requirements

Multi-Signature Requirements

• Critical Actions: Require multiple approvals

• Large Transfers: Higher threshold for big amounts

• Contract Changes: Additional security for upgrades

Delegate System

• Vote Delegation: Allow members to delegate voting power

• Expert Delegates: Community-elected representatives

• Temporary Delegation: For specific proposals

DAO Launch Strategy

Pre-Launch Preparation

1. Community Education: Explain DAO benefits and mechanics

2. Test Proposals: Create sample proposals for practice

3. Voting Tutorials: Help members understand the process

Launch Timeline

• Week 1: DAO deployment and initial setup

• Week 2: Community testing and feedback

• Week 3: First community proposals

• Ongoing: Regular governance cycles

Communication Plan

• Launch Announcement: Explain DAO purpose and benefits

• Regular Updates: Weekly governance summaries

• Proposal Notifications: Alert members of new proposals

• Voting Reminders: Encourage participation

Monitoring and Maintenance

Key Metrics to Track

• Participation Rate: Percentage of NFTs voting

• Proposal Volume: Number of proposals created

• Execution Success: Proposals successfully implemented

• Treasury Health: Fund allocation and growth

Regular Tasks

• Proposal Review: Evaluate proposal quality

• Community Feedback: Gather improvement suggestions

• Parameter Tuning: Adjust governance settings

• Security Monitoring: Watch for potential issues

Troubleshooting DAO Creation

Common Issues

Deployment Failed

❌ Error: Insufficient gas or network issues
✅ Solution: Retry with higher gas limit, check network status

Ownership Verification Failed

❌ Error: Not recognized as collection owner
✅ Solution: Verify wallet connection, check contract ownership

Parameter Validation Error

❌ Error: Invalid quorum percentage
✅ Solution: Ensure values are within acceptable ranges (1-100%)

Support Resources

• DAO Documentation: Comprehensive setup guides

• Community Support: Other creators' experiences

• Technical Support: Development team assistance

DAO Success Stories

Successful Implementation Examples

• Art Collections: Community-curated exhibitions

• Gaming Projects: Player-driven development decisions

• Investment DAOs: Collective treasury management

Key Success Factors

• Clear Communication: Transparent governance processes

• Active Participation: High community engagement

• Value Creation: Decisions that benefit all members

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Ready to empower your community? Creating a DAO is the ultimate step in decentralized collection ownership! 🚀