DAO and Web3 Glossary

Smart Contract: A self-executing contract with the terms of the agreement directly written into code. Smart contracts automatically execute when predefined conditions are met, reducing the need for intermediaries.

Minimum Viable Community (MVC): A core group of early adopters or supporters who are passionate about a project, product, or initiative. They help drive growth, development, and momentum by providing feedback, collaboration, and evangelism.

Treasury: A fund or reserve containing the financial resources of a DAO or organization. Treasuries are used to allocate funds for various purposes, such as funding proposals, rewarding contributors, or covering operational costs.

Multisig: A multi-signature (multisig) wallet or contract that requires multiple parties to approve a transaction before it can be executed, enhancing security and collaboration within a DAO or organization.

Decentralized Autonomous Organization (DAO): An organization that is governed by rules encoded as smart contracts on a blockchain, rather than being controlled by a central authority. DAOs enable decentralized decision-making and resource allocation through token-based voting and proposals.

NFT: Non-Fungible Tokens (NFTs) are unique, indivisible digital assets that can represent ownership of a digital or physical item, like artwork, collectibles, or real estate. They are minted on a blockchain, providing verifiable scarcity and provenance.

Mint: The process of creating a new digital asset, such as an NFT or cryptocurrency token, on a blockchain. Minting typically involves invoking a smart contract function and may require payment of a transaction fee.

Digital (Crypto) Wallet: A software or hardware solution for securely storing, managing, and transacting with digital assets, such as cryptocurrencies or NFTs. Wallets interact with blockchain networks to send, receive, and manage assets.

Office Hours: Regularly scheduled events or meetings where community members, contributors, or leaders of a project or organization are available to answer questions, provide support, or discuss ideas.

POAP: Proof of Attendance Protocol (POAP) is an Ethereum-based protocol that allows users to collect unique, non-fungible tokens as proof of attending specific events, such as conferences, webinars, or community gatherings.

Governance: The process and structures by which decisions are made and enforced within an organization, project, or community. In the context of DAOs, governance often involves token-based voting, proposals, and other decentralized mechanisms.

L2: Layer 2 (L2) is a term used to describe secondary protocols or technologies built on top of existing blockchain networks, such as Ethereum, to improve scalability, reduce transaction costs, or introduce new features.

Lurk: To observe or participate passively in a community or online forum without actively contributing or engaging with others.

Quadratic Voting: A voting mechanism that allows participants to express the strength of their preferences by allocating a limited number of voting credits. The cost of each vote increases quadratically, preventing participants from dominating decisions and encouraging more balanced outcomes.

Blockchain: A decentralized, distributed digital ledger that records transactions across multiple computers. Blockchains provide a secure, transparent, and tamper-resistant way to manage digital assets, enable smart contracts, and power decentralized applications.

Solarpunk: A cultural movement and aesthetic that envisions a sustainable, eco-friendly future that integrates technology, renewable energy, and social equity. Solarpunk combines elements of utopianism, environmentalism, and science fiction.

Digital Asset: Any digital resource that has value and can be owned, traded, or used, such as cryptocurrencies, NFTs, domain names, or digital collectibles.

Cryptocurrency: A digital or virtual currency that uses cryptography for security and operates on a decentralized network, such as a blockchain. Examples include Bitcoin, Ethereum, and various altcoins.

Fren: An informal term used in online communities to refer to a friend or a friendly person, often with a playful or affectionate tone.

Web3: The next generation of the internet, which aims to create a decentralized and user-centric ecosystem by integrating blockchain technology, cryptocurrencies, and decentralized applications (dApps) into the fabric of the web.

Regen: Short for “regenerative,” referring to practices, systems, or technologies that focus on restoring, revitalizing, and sustaining ecosystems, communities, or resources.

Anon: Short for “anonymous,” a term used to describe individuals who participate in online communities or activities without revealing their real-life identities.

Tokenization: The process of converting real-world assets, rights, or access into digital tokens that can be traded, transferred, or managed on a blockchain. Tokenization enables fractional ownership, increased liquidity, and global access to assets.

ImpactDAO: A decentralized autonomous organization (DAO) focused on creating social and environmental impact through collaborative decision-making, resource allocation, and project implementation.

Degen: Short for “degenerate,” a term used in the cryptocurrency and DeFi communities to describe individuals who engage in high-risk, speculative investment or trading strategies, often with a humorous or self-deprecating tone.

POAP Votes: Voting mechanisms that utilize Proof of Attendance Protocol (POAP) tokens to determine eligibility or weight in governance decisions, often in the context of DAOs or decentralized communities.

Governance NFT: A non-fungible token (NFT) that represents voting rights or governance privileges within a DAO or decentralized organization.

Quadratic Funding: A mechanism for allocating funding to projects based on the number of individual contributions and the total amount contributed. Quadratic funding aims to prioritize projects with broad support, rather than just those with the most financial backing.

Carbon Votes: *Voting mechanisms that take into account the environmental impact or carbonfootprint of a project or decision. Carbon votes aim to promote sustainable practices and environmentally responsible choices within organizations or communities.

L3: Layer 3 (L3) refers to protocols or technologies built on top of Layer 2 (L2) solutions, which themselves are built on existing blockchain networks. L3 aims to further optimize scalability, cost-efficiency, or add new features to the underlying L2 solutions.

Soulbound Token: A type of token that is permanently linked to the owner’s wallet or identity, and cannot be transferred or sold. Soulbound tokens can represent unique privileges, access, or achievements within a community or platform.

Gas Fees: Transaction fees paid by users to execute operations on blockchain networks, such as sending tokens, interacting with smart contracts, or minting NFTs. Gas fees compensate miners or validators for processing and securing transactions.

ERC-20 Token: A widely-used token standard on the Ethereum blockchain that defines a set of rules for the creation, management, and transfer of fungible tokens. ERC-20 tokens are commonly used for cryptocurrencies, utility tokens, and governance tokens.

Non-Custodial Wallet: A type of digital wallet where users maintain full control over their private keys and are solely responsible for the security of their assets. Non-custodial wallets offer greater privacy and self-sovereignty compared to custodial solutions.

On-chain: Refers to transactions, events, or data that are recorded and processed directly on a blockchain network. On-chain activities are transparent, secure, and usually subject to transaction fees.

Decentralized Applications (dApps): Applications that run on decentralized networks, such as blockchain platforms, and are not controlled by a single entity. dApps enable censorship-resistant, trustless, and peer-to-peer interactions between users and often involve digital assets or tokens.

Transferable: Refers to digital assets or tokens that can be sent, received, or traded between parties, often on a blockchain network. Transferable assets enable liquidity, fractional ownership, and global access.

Non-Transferable: Refers to digital assets or tokens that cannot be sent, received, or traded between parties, often due to design constraints or specific use cases. Non-transferable assets can represent unique privileges, access, or achievements that are tied to an individual or entity.

Delegated Voting: A voting mechanism that allows participants to delegate their voting power to another party, often an expert or trusted representative, who can vote on their behalf. Delegated voting enables more efficient decision-making and leverages the knowledge of subject-matter experts.

Conviction Voting: A voting mechanism that allows participants to express their support for multiple proposals simultaneously, with their voting power increasing over time for each proposal they support. Conviction voting aims to encourage long-term alignment and reduce the influence of short-term, speculative interests.

Regenerative Finance (ReFi): Financial systems and practices that prioritize environmental sustainability, social equity, and long-term value creation. Regenerative finance aims to create positive impacts by aligning financial incentives with ecological and community well-being.

Workstream: A specific area of focus or a group of tasks within a larger project, often managed by a dedicated team or individual. In the context of DAOs, workstreams can be centered around development, marketing, governance, or other organizational objectives.

Universal Basic Income (UBI): A social welfare program that provides a regular, unconditional cash payment to all citizens or residents of a community, regardless of their employment status, income, or other factors. UBI aims to reduce poverty, promote economic stability, and enable individual freedom and creativity.