"DAO governance" struggles to support technical decisions, Gitcoin announces restructuring and establishment of a laboratory

The open-source funding platform Gitcoin announced that it will shift its focus from public product financing to donations for Ethereum infrastructure. Additionally, it will establish a laboratory to address the shortcomings of DAO in technical decision-making.

Gitcoin Executive Director: DAO Structure Lacks Execution Power and is Time-Consuming

According to a report by Blockworks, since its launch in May 2021, Gitcoin has maintained a relatively flat organizational structure without a CEO giving orders. Workflows, specific tasks, or project teams are approved through community governance voting.

However, this is a very time-consuming process. With the development of DAOs, Gitcoin has shifted from an organization focused on influence to one centered more around technology. Kyle Weiss, the Executive Director of Gitcoin, stated in an interview:

This doesn't quite align with the existing DAO structure; it's too disconnected. Everyone is in a completely remote environment, and our staff is spread across continents. Stability, operations, and software development are crucial, and we need a core team with the necessary expertise.

Gitcoin Restructuring Plan: Establishing a Protocol Lab

As part of the restructuring plan, Gitcoin has internally established two business departments, one focusing on coordinating product-related work, while the subDAO will manage community governance affairs.

Kyle Weiss pointed out that over the years, Gitcoin has experimented with various products, some leading down the wrong path and others holding value for future development. While previously Gitcoin mainly focused on grants, its narrative now revolves around funding public goods, reflecting the shift from an influence organization to a technical one.

Kyle Weiss explained:

DAOs are shifting towards a structure more akin to a "lab," which is quite common, similar to Uniswap Labs, OP Labs, and how they collaborate with their respective protocols. We aim to ensure stability in software development and then empower the DAO with substantive work scopes.

Do Community Members Have Sufficient Technical Background to Determine Development Direction?

The "lab" structure can provide software development teams with greater leadership and clearer decision-making authority, allowing the community to focus on achieving results through governance voting on grant projects.

Kyle Weiss admits uncertainty regarding whether token voting governance, the so-called decision-makers for technical aspects and multi-year roadmaps, is the appropriate choice.

Gitcoin co-founder Kevin Owocki shares the same view:

It has not been proven that the DAO structure is sufficient to support software development. The reason for building a lab team is the realization within our organizational structure to ensure that we are constructing world-class software.