What Is Moloch DAO?
Moloch DAO can refer to the DAO framework, a description of a DAO that uses the framework, or the name of the Ethereum grant-giving DAO that originally created the framework.
Moloch DAO Framework
In contrast to other early DAO frameworks, the Moloch DAO architecture is relatively simple, comprising a single smart contract per DAO, focusing on security, usability, and extensibility.
Its primary features are:
- Permissioned membership – existing members vote in new members
- Weighted voting – members can have varying governance weights (in contrast to multi sigs, where every member has a single vote)
- Non-transferrable governance power – voting and economic rights are not liquid
- Ragequit – members can exit some or all of their membership shares in return for a proportional amount of the assets in the DAO’s treasury
Proposals, Sponsorship, Voting, and Grace Period
Moloch DAOs take action in the form of proposals.
Once submitted, a proposal must be sponsored by a member of the DAO.
Once sponsored, the voting period begins, during which members vote on the proposal according to their shares.
A proposal is passed if it receives more share votes in favor than in opposition; there is no quorum requirement.
If the proposal passes, it must go through a grace period before it can be executed. During this period, members who did not vote in favor of the proposal may Ragequit.
This offers strong protection for minority members even without a quorum requirement.
Shares, Asset Transfers, and Integration
Proposals can grant shares to new members (or additional shares to existing members) and transfer assets from the DAO treasury to recipients.
While proposals cannot interact directly with other smart contracts, Moloch DAOs can do so with the help of special helper smart contracts called Moloch Minions.
Moloch DAOs have several important properties:
- Strong minority member protection
- Security
- Highly decentralized and distributed power
- Support for efficient coordination
Versions
Since its initial launch, the Moloch DAO framework has upgraded to Moloch V2, which enables a new layer of DAO capabilities, including the ability for Moloch DAOs to acquire and spend different tokens (instead of just one).
Moloch V2 also introduces the “Guild Kick” proposal type, allowing members to collectively remove another member from the DAO (their assets are fully refunded).
It also added loot shares, representing economic exit rights without voting rights.
Moloch V3, expected to introduce new flexibility and extensibility to the framework, is currently in development.