Evaluating campaign trustworthiness

DAO Up! does a lot to make sure that backer funds are safe. Though at the end of the day, technology can't solve all trust issues. When backing a campaign on DAO Up!, here are some tips for making sure it is safe.

  1. Look at the percentage of governance power being allocated to campaign backers. Make sure that backers will have sufficient voting power to influence decisions the DAO makes, such as withdraw money.
  2. Take a look at the campaign's description and community platforms. Make sure the DAO has a well thought-out plan and obvious commitment to those plans.
  3. Figure out who the campaign's creators are. If they are anonymous, make sure their past work seems reputable.

What is a good percentage of governance power?

When a DAO is created, some governance tokens are distributed to its members, but most of them are kept in the DAO's treasury for future distribution. Governance tokens stored in the treasury do not count towards voting power, so the campaign's voting power is computed by excluding the DAO's treasury balance.

Note that the majority of DAO's governance tokens are often controlled by the DAO itself. A low percentage of governance tokens does not mean that backers won't have strong voting power. You can find additional information about how many tokens the DAO controls by visiting the DAO's page on DAO DAO and viewing its treasury.