Simplifying DAO Finances Without Compromising Decentralization

Managing payments in DAOs can be complex, with many existing tools requiring reliance on multisigs. While multisigs offer convenience, they centralize financial control, introducing risks like liability for signers and potential misuse of funds. At Decent, we’ve designed a suite of native payment solutions to keep financial power decentralized while maintaining efficiency.

Why Decentralized Payments Matter

Traditional DAO payment systems often rely on multisigs as both treasuries and payroll mechanisms. While practical, this setup:

• Centralizes control: A small group of signers manages DAO funds, which contradicts the principle of decentralization.
• Introduces risks: Multisig signers could theoretically misuse funds, or be exposed to legal liabilities as unlimited liability partners.
• Creates governance fatigue: Requiring unique proposals for each payment increases the workload for members.

Decent’s Solution

We’ve designed native compensation tools in Decent to keep financial control where it belongs—with your DAO’s members. These solutions streamline the payment process, balancing efficiency with decentralization. By reducing the need for unique proposals for every payment action, Decent helps prevent governance fatigue and empowers DAOs to operate smoothly and effectively.

Payment Methods in Decent

1. Token Transfers

Token transfers are the most commonly created proposal type for DAOs on Decent. They are ideal for straightforward payments, such as grants or one-time compensation.

How It Works:

• Navigate to the Treasury page in the Decent app.
• Click ‘Request Payment’ to initiate a proposal without needing custom transactions.

With Decent’s user-friendly interface, creating token transfer proposals is quick and accessible for all members.

2. Payment Streams

For recurring compensation, payment streams automate processes and free up bandwidth for DAO members. These are especially useful for regular contributor payments or contractor agreements.

How It Works:

• Set up recurring payments via the Treasury page, no technical knowledge required.
• Attach payment streams to contractor proposals for seamless execution.

This approach ensures efficiency while allowing DAOs to focus on their core activities.

3. Paid Roles

Decent links payments directly to DAO roles, adding flexibility and accountability. Contributors are compensated based on their roles, which come with clearly defined responsibilities.

Key Features:

• Payments transition automatically to new role-holders when roles are reassigned.
• Unused funds are returned to the DAO Treasury if a role is revoked.

This feature empowers DAOs to manage contributors dynamically without compromising financial control.

4. Airdrops

Airdrops allow DAOs to reward or incentivize community engagement through batch token transfers. However, managing countless wallet addresses can be error-prone and time-consuming.

Decent’s Solution:

• Use an intuitive interface to log wallet addresses and token allocations.
• Batch multiple transfers into a single on-chain proposal.

This eliminates the need for custom contract calls and ensures a smooth experience for large-scale token distributions.

SubDAO Multisigs

For DAOs needing to delegate financial control, Decent’s SubDAO multisigs provide a safe solution. Unlike traditional multisigs, Decent introduces oversight mechanisms to protect the parent DAO.

Key Features:

• Clawback provisions: Allow the parent DAO to reclaim funds if necessary.
• Operational autonomy: Enable working groups to function independently while aligning with the DAO’s interests.

This balance ensures that DAOs can empower subgroups without exposing themselves to undue risk.

Why Choose Decent for DAO Payments?

Decent’s payment framework streamlines DAO financial operations while safeguarding decentralization.

• Maintain accountability: Protect funds with robust processes.
• Reduce governance burdens: Simplify workflows to prevent member fatigue.
• Enhance usability: Offer intuitive tools accessible to all contributors.

With Decent, your DAO can execute payments efficiently, empowering members to focus on what truly matters—building a decentralized future.

About Decent DAO

We’re Decent.

We are committed to proving that DAOs are the most effective vehicles for maximizing stakeholder alignment and envision a future where DAOs govern our most vital institutions.

We play long-term games with long-term people. Decent is built with partners like Safe, OpenZeppelin, Hats Protocol, and Sablier. Decent is audited by Halborn and backed by some of the most prolific investors in web3.

To learn more, visit our DAO on the Decent app and follow us on X, Warpcast, and Mirror.