Key Elements For Successful DAO Budget Management

According to BlockBeats, on August 27, Jupiter co-founder Meow shared insights on social media regarding the essential elements for a successful DAO budget. Meow emphasized that the key does not lie in complex technical tools or restrictive KPIs, which are often the first solutions people instinctively seek. Instead, Meow advocates for traditional risk limitations and human accountability. Meow outlined two primary components: risk limitation and human responsibility. Risk limitation involves gradually reclaiming and releasing funds in stages to minimize losses. Priority should be given to community members with a strong track record. The budget scope should be small enough that even if a budget fails completely, the damage to the system is limited, allowing for learning opportunities. Human responsibility ensures that budget recipients clearly communicate their intentions before funds are released and publicly reflect on the outcomes after sufficient time has passed. If accountability is unclear, the DAO has the right to halt future funding. Meow believes that by using risk limitations and accountability instead of rigid systems and random KPIs, which people often commit to under pressure, more flexibility, operational space, and empathy can be provided. Despite skepticism surrounding DAO budgets due to past abuses, Meow remains optimistic about focusing on the positive potential of people. Ultimately, a good DAO and community are not built on code or money but on good, solid people with the best intentions. Trust is essential for collaborative growth, as a lack of trust leads to an environment dominated by negative emotions and demands. Therefore, Meow advocates for believing in the goodness of humanity and the goodwill of peers, supported by solid risk limitations and strict accountability measures.