TLDR
- What is a SubDAO? A SubDAO (or SideDAO) is a semi-autonomous unit within a larger DAO, managing its own treasury and governance while aligning with the parent DAO’s objectives.
- Gitcoin’s SubDAOs & Value Capture: Gitcoin’s ecosystem includes several SubDAOs (e.g., Passport, KERNEL, Public Works, Allo.Capital), each with independent value propositions and potential upside for Gitcoin. Some units, like Grants Lab and GG Program, are not yet SubDAOs but contribute significant revenue.
- SubDAO-Centric Tokenomics: As we consider tokenomics for GTC, we may want to consider taking a look at this design space in a subDAO-centric way.
What is a SubDAO?
A SubDAO (or SideDAO) is a specialized, semi-autonomous division of a larger DAO . These entities operate under the broader governance framework of the parent DAO but have their own treasury, decision-making processes, and scope of work.
Key Characteristics of SubDAOs/SideDAOs:
- Autonomy – While linked to the main DAO, they make independent decisions about their domain.
- Specialization – Often focused on specific tasks (e.g., grants, community management, research).
- Treasury Management – May have their own budget, either funded by the main DAO or through independent revenue streams.
- Governance Model – They may have their own governance, or may use delegated governance, where the parent DAO sets high-level strategy, but execution is handled by the SubDAO.
- Efficiency – Helps scale the DAO by decentralizing operations and decision-making.
SubDAOs/SideDAOs of Gitcoin
I think that one plausible way of thinking about $GTC’s utility is as a basket of the utility of all of it’s subdaos. Here they are:
| SubDAO | Key Persons | Value Prop | Upside to Gitcoin |
|---|---|---|---|
| Passport | Kyle Weiss, Jeremy Dillingham | Passport is a decentralized identity and reputation system by Gitcoin that enables users to build a verifiable, sybil-resistant digital identity. | As of spinout, Gitcoin has upside in Passport (rights to future equity/tokens or other forms of upside). |
| KERNEL | Andy Thudhope, Vivek Singh | Kernel is an invite-only Web3 learning community and accelerator focused on open-source collaboration and values-driven innovation. | As of spinout, Gitcoin has upside in KERNEL (rights to future equity/tokens or other forms of upside). |
| Public Works | Scott Moore | Public Works is an open-source ecosystem fund building sustainable, decentralized public infrastructure for better coordination. | Gitcoin should have upside in Public Works (rights to future equity/tokens or other forms of upside), though no agreement has been papered. |
| Allo.Capital | Rena OBrien, Kevin Owocki | Allo.Capital is a hybrid research organization, software studio, and venture fund dedicated to catalyzing a network of innovators to fund funding infrastructure projects in the 21st century. | A proposal for Gitcoin to have upside in Allo.Capital has been posted here[link]. |
| Grants Lab | Meg List, Ed Flemming, Kataluna | The primary development team behind Gitcoin. $10m in GMv last year, $1.1m in revenue. | Grants Lab is currently wholly part of Gitcoin, though it could spinout one day. Not currently a subdao. |
| GG Program | Mathilda, Gitcoin Foundation | Operates Gitcoin’s quarterly matching campaigns. $20m matching pool for Ethereum ecosystem public goods. | The top showcase for Gitcoin products, services, and culture. Not currently a subdao. |
Value Capture Visual Overview
In a world in which each of these SubDAOs had value capture of the projects they support, and and Gitcoin had value capture, this is how the value capture sink would look for Gitcoin.
Tokenomics
As we start to work through the tokenomics for Gitcoin, I think that the subDAO-centric model of Gitcoin is one we should consider.
Here is a table that presents how a subDAO centric valuation model might work (important caveat: all numbers in this model are just dummy numbers for the sake of argument, do not make any financial decisions based on these numbers, a more rigorous valuation exercise may be necessary to fully value GTC tokenomics under this model)
Disclaimer: This post is for informative purposes only and is not financial advice. DYOR, do not make any financial decisions based on these posts. In addition: I own crypto assets like ETH, DAI, USDC, and GTC.
), the DAO earns a cool $1.6M, and that gets sent directly to it’s treasury?