Like any other community, every DAO has a group of people who may have different languages and cultures, but they are after the same goals. DAO community can be defined in different scopes: either a wide group (everyone who’s interested in your project) or a narrow one (only those who work on the project itself).

DAO community might appear to be an ambiguous subject. You won’t be in the dark about what your community should accomplish or how it might benefit the company, though, after you create clear and actionable limits around it and what you want it to be.

Is your DAO community healthy?

👉 Check it out: https://medium.com/@HectagonFinance/is-your-dao-community-healthy-38dfcba86bb5

Hi guys,

Stay tuned for our year-end Community Call:

📰 Summary of Investment Dao 2022
- How much money Hectagon has invested
- Brief of the invested projected
- 2023 plan for the rest of the treasury

💟 Hectagon product direction 2023
- DAO platform + Layer1 roadmap (what, why, when)
- New token launching plan & airdrop for existing holders

🎆 Community plan 2023
- Investment DAO community
- DAO tool community

See you at 7:00-8:00 (UTC) on Discord (30th Dec).

🔮 Hectagon Discord: https://discord.gg/hectagonfinance?event=1057511010891735130

Three phases when building a community (Part2):
Start your community!

🔺Do things that don’t scale to onboard the first 100 members
🔺Understand different types of motivation and design for them
🔺Define boundaries to create unified growth

👉Learn more: https://medium.com/@HectagonFinance/three-phases-when-building-a-community-part2-1e94658cde71

Decentralized Autonomous Organizations (DAOs) were once mentioned by @Forbes as the model that is "turning traditional forms of organizing upside down".
So what exactly DAO is?

- A DAO is a blockchain-based organization, that uses code instead of boards to create transparent governing bodies that make decisions by the will of all members

- Power is distributed across token holders who collectively cast votes, thus, no central authority

- All votes and activities within DAO are posted on a blockchain, making all actions of users publicly viewable

- A DAO must ensure security is prioritized, as exploits can leave a DAO drained of millions of dollars of its treasury savings

- While DAOs are not ubiquitous yet, they do seem to be picking up steam with many creators

- So far DAOs are being used for many purposes such as investment, charity, fundraising, borrowing, or buying NFTs, all without intermediaries

Happy Lunar New Year Hectaholics!
Thank you for your strong support and collaboration all this while. We are looking forward to keep building our success in 2023. We kindly announce our operation time on Lunar New Year Holiday as follow:
* The holiday will start from Friday, January 20th, 2023, to Thursday, January 26th, 2023.
* We will resume regular business hours on Friday, January 27th, 2023.
All the requests and questions during the Holliday will be carefully handled on January 27th, 2023 May this wonderful holiday season brings you all abundant joy, and prosperity

The most popular types of DAOs with examples for each (part2)
🏷 Social DAOs
Social DAOs bring like-minded people together and pursue projects that matter to the community, coordinated around a token. Typically there may be entry criteria to joining such as a DAO - such as ownership of native DAO tokens or NFTs or receiving a personal invite
Example: Friends with Benefits DAO. Website: https://t.co/Yyr1A3qXyS
🏷 Collector DAOs
Collector DAOs allow members to pool their assets to invest in collectibles such as NFTs. The community owns the collectible, so each member owns a share in proportion to their investment
Example: The ConstitutionDAO. Website: https://www.constitutiondao.com/
🏷 Venture DAOs
Venture DAOs raise investments for blockchain startups, crypto projects, off-chain investments, protocols, and more. These DAOs open the doors to a new world of possibilities otherwise unavailable in traditional finance
Example: MetaCartel Ventures. Website: https://metacartel.xyz/
🏷 Media DAOs
These DAOs reinvent how content producers and consumers engage with media. Using token incentives to reward producers and consumers for their time with an ownership stake in a given outlet, the community gets to drive the content while removing advertisers from the picture
Example: BanklessDAO. Website: https://www.bankless.community/
🏷 SubDAOs
SubDAOs are the subsets of DAOs with specific duties like operations, grants, marketing, collaboration, and treasury
Example: Balancer DAO. Website: https://balancer.fi/

DAO requires the participation of serious users to achieve success for decentralized projects through tokens. A type of utility token is called the DAO governance token
🚀What is the DAO governance token?
DAO governance token is issued to users to govern the DAO and represents their stakes. The holders of the governance tokens gain the power to vote on crucial matters related to the DAO, no matter who they are
🚀 How does a DAO governance token work?
DAOs are run by a bunch of code comprised in a smart contract – which drives the rules of how a governance token is used in DAO:
- Users invest in DAO’s fund by buying governance token holders ⇒ becoming the holders and getting voting power
- The holders use their voting rights for various decisions that need to be made in the DAO ⇒ influencing treasury management and shaping DAO’s future
🚀 DAO governance token’s benefits
- Eliminating central management of organizations
- Providing authority into the hands of the users
- As each token equals one vote, decision-making power is equitable
- Having details viewable for everyone reduces the chances of cheating
🚀 What to do when building a governance token?
A governance token is a method to serve the community’s growth, therefore, having your DAO insights carefully considered is indispensable. you should ask yourself the following questions:
- Does your project resemble a country (seeking more democratic systems of governance) or a corporation (optimizing for shareholder value)?
- What level of control do you want to provide your community? Too little or too much control has its set of pros and cons
🚀 What is your opinion about the potential of the DAO governance token? Do you think it is poised to gain wider utility in more sectors?

DAO PROPOSAL: ADJUSTING APY TO 0%

We are evolving Hectagon into a new blockchain specifically focuses on serving DAOs. This new chain will have its own token and the current Hecta holders will receive airdrop of this new token. In order to calculate the airdrop amount, we propose to fix the supply of the Hecta token by adjusting the APY to 0%.

👉 FAQs answered:

✅ This action doesn’t effect the net assets value (NAV) of each token holder

✅ Hecta token will continue representing the ownership in the current Investment Fund

✅ The new token of the Hectagon chain will be airdropped according to the current ownership percentage of each Hecta holder

👉 Read more & Cast your vote here: https://snapshot.org/#/hectagon.eth/proposal/0x3656ce7d86ff8a8185c6694b9aee1422cfe138f544246eb314876fb9a7afdd08

⏰ End time*: Feb 10, 2023 01:30PM UTC*

🛎️ Don’t forget to join our Community Call this Friday at 7:00-8:00 (UTC)!

Updates on HIP11 - Adjusting APY to 0%

💪Thank you for your voting!

🚀Adjusting APY to 0% helps the supply of Hecta token to be stable which allows the calculation new token airdrop amount for current Hecta holders. We proposed this idea on Hectagon Snapshot and had our members voting for its execution in the last couple of days

⏰The proposal ended on *Feb 10, 2023 01:30PM UTC* with 100% approval. That means APY will be adjusted to 0%.

👉Check again the proposal here one more time and let’s prepare for the new token airdrop soon: https://snapshot.org/#/hectagon.eth/proposal/0x3656ce7d86ff8a8185c6694b9aee1422cfe138f544246eb314876fb9a7afdd08

DAO in Social Media. What is new?

📱What is new?
Though the Web2 epoch is considered the era of social media while generating higher economic value, it holds entire control of the platforms and user data completely centrally.
Web3 no longer follows that concept, but it is prepared to reverse the trend and put consumers in control of their own data
This is where(DAO) takes the lead. DAO is all set to transform the social media landscape

📱The Beneficial Effects of DAO on Social Media
DAO development upliftings the social media environment overall and elevates the user's journey
- Social embedding
- Power to content producers
- Financial support for new network builders

Read more here: https://twitter.com/hectagonfinance/status/1626277826088542208?s=46&t=9XnW80-tETbiBlsRnvBLxQ

How DAOs are becoming the preferred funding vehicle for online communities?
👌Community-governed
- That governance is made impossible and the consensus is generated via tokenized voting, which is subsequently implemented through a smart contract built on the IF-THEN logic's fundamentals.
- Since the mentioned executions take place on a transparent and immutable blockchain network, DAOs open the door to unprecedented levels of oversight and user confidence.

👌Take a look at some of the usecases
📌ConstitutionDAO
- Let’s say you want to crowdfund the purchase of a rare copy of the US Constitution. This happened with ConstitutionDAO. Read more here: https://bit.ly/3EiXa31
- The DAO ultimately lost out to a billionaire but won showcasing important points a DAO can achieve:

📌PleasrDAO
- Last summer, PleasrDAO made headlines by using NFTs as collateral for a $3.5 million loan (https://twitter.com/creamdotfinance/status/1415998512358035460)

👌Full version: https://bit.ly/3IDhGht

DAOs are more resilient than conventional commercial organizations because of their ability to adapt and change.

💰Code-embedded regulations
There is no need for managers because DAO rules are included in a code within the blockchain ecosystem. This kind of organizational structure eliminates the constraints caused by bureaucracy and other organizational issues.

💰Smart contract “board”
A DAO decentralizes power and permits autonomous operation by replacing the organization's members and board of trustees with smart contracts. Members of the DAO then propose and accept initiatives and decisions, which are all publicly recorded on the blockchain.

💰Categories of DAOs
By using a smart contract system and tokens for managing ownership, companies ensure value and revenue “on chain.” Here are four different categories of DAOs that earn money.
1. Commerce DAOs
2. Investment DAOs.
3. Service DAOs

Twitter thread: https://twitter.com/hectagondao/status/1628726312788537344?s=46&t=ALl8XXwctoAXXy-l1kuTYg

Best DAO Tokens to Consider

1. Uniswap
Market Cap:$5,266,385,888
Highlights:
✔️Swap ERC-20 tokens
✔️Earn interest with crypto staking
✔️Over 72,000 liquidity providers

2. ApeCoin
Market Cap: $2,097,853,682
Highlights:
✔️Governance token for the ApeDAO
✔️An in-game currency
✔️Merchandise sales
✔️Payment for Ape community events
✔️Low-risk investment

3. Aave
Market Cap: $1,211,581,599
Highlights:
✔️Aave is used as collateral in the ecosystem
✔️Stake tokens in DAO and manage rewards and risks collectively.
✔️Locking digital assets in liquidity pools for passive income

4. Dash
Market Cap: $792,411,131
Highlights:
✔️Instant transactions using InstantSend
✔️Improved speed, security, and openness
✔️Superior privacy using CoinJoin
✔️Protection against blockchain reorganization events

5. Compound
Market Cap: $387,328,421
Highlights:
✔️Users can secure a passive income
✔️Fully Autonomous
✔️Security audits
✔️Interoperability

📱Read the thread: https://twitter.com/hectagondao/status/1629692749942505475?s=46&t=tKNM2XzhtBfBl81jn2nHMQ

Ongoing conversations say that highly decentralized DAOs have been inefficient. Ethereum co-founder, Vitalik Buterin, countered the proposition

🧑‍💻 He argued that DAO-like structures would be more efficient since they relied on the wisdom of the crowd to aggregate inputs that would guide the decision-making process, which also helped reduce the concentration of power within a single entity

🧑‍💻 Vitalik said DAOs need to remain highly decentralized while incorporating elements of political science and corporate governance.

🧑‍💻 Realistically, we probably only need a small number of DAOs that look more like constructs from political science than something out of corporate governance. But those are the really important ones

🧑‍💻 Much simpler and leader-driven forms of governance emphasizing agility are going to be helpful for timely decisions. But the fact is the ecosystem would not survive without some non-corporate decentralized forms keeping the whole thing stable.

The tweets: https://bit.ly/41HXUci

Top 10 DAO tools (part1)

1. Syndicate
Web: https://syndicate.io/
Syndicate is the decentralized investing protocol and social network, offers the infrastructure and resources necessary for investing DAOs to comply with regulations, network socially, and make real-world investments.

2. Open Law
Web: https://www.openlaw.io/
Code may now be used to simulate all or a portion of legal agreements. Open Law makes it easier to answer legality-related queries. With their platform, you may create and execute legal contracts that contain smart contracts.

3. JuiceBox
Web: https://juicebox.money/
JuiceBox primarily functions as a tool for fundraising, making it simple to raise bitcoin. Using the platform, you may support a project, organize a community around it, and plan how much money it will get. The user interface is also designed to seem friendly.

4. Discord
Web: https://discord.com/
Discord is the primary site where DAOs interact until a web3 version is created, especially for larger groups. You must be familiar with Discord and have a basic understanding of bots if you plan to set up Discord and create your DAO.

5. Coordinape
Web: https://coordinape.com/
It is crucial to provide an appropriate system of payment for individuals who contribute to, moderate, and labor for the DAO. With the use of Coordinate, DAOs may develop methods for rewarding active members and promoting involvement.

Critical considerations for Incentive Mechanism (Part1)

To find the tools and incentive systems most likely to benefit your DAO, it might be helpful to prioritize your two or three most critical considerations.
Let's examine these elements in further detail and see why they may be significant.

1. The Incentive's Decentralization
Does the DAO require a decentralized system, or are your incentives compatible with some degree of centralization?
Decentralization of the incentive can be a spectrum. The answer for a well-established DAO with the related methods is likely to be different from a fresh one. Besides, tools, when you want a more centralized approach, and tools when you need incentives to be decentralized, are both available.

2. Control of the Reward
How much time and expertise does the team have to manage the incentive mechanism's administration?
For instance, with bounties that have clear success criteria, rewards are a beautiful option. Nevertheless, defining, promoting, reviewing, and rewarding a bounty all need the work and resources of DAO members. The benefits of a straightforward reward could be offset by the work required to develop and implement it, but this is not a given.

3. The Contributor's Reputation
What kind of prestige or connections does the participant have within the DAO?
While zones with varying degrees of engagement or contribution might serve as substitutes for reputation, there is also this one amazing thing about permissionless systems is that anonymous, ad-hoc contributors may do many important jobs in a DAO without anyone knowing the smallest thing about them

4. Definability of the Task
Is the task clearly defined, and how can you tell whether it has been completed?
Which techniques may be employed can be effectively determined by whether the contribution can be defined.
Easy-to-define tasks frequently function effectively as bounties or awards since they may be packed up and distributed anyplace or with anyone. However, there are some contributions are less clearly defined. They may provide several inputs during the course of an epoch without them being predefined, with the value being realized only at the end.

Critical considerations for Incentive Mechanism (Part2)
Let's pick up where we left off

5. Time Required to Finish
How long does it take to do the necessary task?
After spending some time working with DAOs, you begin to appreciate how important it is to have consistent attendees. Having said that, a person's sporadic small bit of time does mount up. You could require several inducements to entice either one, the other, or both.

6. Completion Complexity
Is the work extremely complicated, either in terms of the actual task or the level of skill necessary to complete it?
Being aware of the complexity can help you pick an effective incentive system since a genre-defining issue frequently calls for a completely different strategy than one that just calls for an extra set of hands.

7. Task Repetition Frequency
How often is the task or activity to be done? Is it recurring and continuing or simply one time only?
Teams may save a lot of time when creating incentives by being aware of the processes that are effective in each of the aforementioned cases.
For instance, one-off incentives may be sufficient for one-of-a-kind jobs, scaling may be necessary for repeating chores to avoid draining the budget, and methods that promote continuous involvement may be more effective for ongoing tasks.

7. Task's Effects
Is this task's effect and visibility wide or narrow?
While DAOs (hopefully) pay for impacts. Incentives, however, frequently operate depending on those impacts’ apparent visibility.
Will the salt-of-the-earth DAO contributors who serve as the community's moral compass receive adequate credit for their enormous accomplishments in social networks or systems? These are actually crucial inquiries while weighing various strategies and ways.

Critical considerations for Incentive Mechanism (Part3)
Let's pick up where we left off

9. The Task's Value
Would this activity benefit the DAO in any way?
If "Yes," then this has to be adequately rewarded and (hopefully) enable the team to experience some of the benefits. In such cases, more covert or bundled prizes could be preferable.

10. The Task's Importance
Compared to everything else, how urgent is the task at hand?
If tasks need to be completed quickly, incentives should support this or be large enough to draw talent. In contrast, rewards may be packed up into a cyclical reward system or given passively

11. The necessity to pay the prize
When should the DAO pay its contributors? Is there any “golden time” for this?
If tasks need to be completed quickly, incentives should support this or be large enough to draw talent. In contrast, rewards may be packed up into a cyclical reward system or given passively golden time” for this?
When there is plenty of labor and few quality workers, big upfront commitments with the "promise" of subsequent incentives and recognition can be highly ineffective. For you and your DAO(s), knowing if you can pay right away, in installments, or upon completion may be essential and crucial.

Before choosing which incentives to deploy or what tools to experiment with, these considerations will assist DAO operators in identifying their most critical goals.

Now that you have identified your key needs and the mechanisms that might work well (link Twitter), today's thread provides a brief overview of each.

1. POAPs & NFTs
NFTs are generated by the Proof of Attendance Protocol (POAP) to signify your involvement or attendance at events. They are quickly being used as online resume
✅ Allow access and gating, build reputation,low cost
❌ Non-financial, work only in specific usecases

2. Tipping & Tips
Tips have the power to recompense value creation very quickly. Additionally, tipping enables anyone in a DAO to give and receive tips.
✅ Real time recognition, good for unplanned value creation
❌ Very centralized, good when targeted but does not scale well

3. Algorithmic Network Analysis
It develops processes for collaborative actions and acknowledgment so that the program can determine how value has been generated and accumulated.
✅Decentralized, algorithm removes manpower needs
❌Tech and algorithm requires dev experience

4. Coordinape
Coordinape is a decentralized, pro-social recognition tool, works by allocating tokens to each participant, who award them to their peers during 'epochs’
✅Decentralized, prosocial, uncapped rewards (up to pool total)
❌Uncertainty of reward for contributors

5. Bounties
DAOs break down work into discrete tasks or activities that can be done by the community through the bounties
✅Discrete or one-off tasks, easily definable completion, don't require reputation
❌ Brings overheads, not good for work that is hard to define

6. Grants
Grant brings in fresh cross-functional teams or experts to assist the primary contributing team's tasks.
✅Large complex tasks, pay for completion, attract new participants
❌Not great for small tasks, high operational effort

7. Streams
These programmed financial flows can make payments to contributors or other parties block-by-block
✅Reward ongoing commitment, real time- pay by the block
❌Does not make sense for small discrete tasks

8. KPI Options
They can encourage outcomes and results in binary and non-binary ways, and scale rewards according to effect
✅Reward over-achievement, the shared upside for contributors, and pay for results
❌Result needs to be defined upfront and be publicly verifiable

DAO PROPOSALS: Invest in public token using Treasury
At the beginning of April 2023, Hectagon will spend a part of the Treasury for projects’ public token investments.

❓Why?
Investing in projects' public tokens will help diversify, increase the liquidity of the portfolio, and provide the chance to increase the total profit margin, all of which will help increase investment flexibility.

💰How much?
$50.000 in the form of a stablecoin (BUSD)
The portfolio will be developed with the following:
Maximum 10 tokens in 3 segments:
- Optimistic Rollups: token in Arbitrum and Optimism.
- Zk Rollups
- Top coin as BTC, ETH…

✅ The investment report will be produced monthly, no later than the 10th of next month, starting from May 2023.

Read more & Cast your vote:
👉HIP12 - Invest in public token: https://bit.ly/3nojD9f
⏰ End time: Mar 31, 2023 01:00 UTC

👉HIP13 - How much should Hectagon invest for public token?: https://bit.ly/42Mfa0u
⏰ End time: Mar 31, 2023 23:00 UTC