AMA with Faith Obafemi on on Blockchain Income Opportunities: Earning Crypto by working for DAOs

Introduction to Earning Cryptocurrency by Working for DAOs

The emergence of blockchain and Web3 technologies presents several opportunities for people to work and earn income from decentralised autonomous organisations (DAOs). DAOs manage funds and labour towards achieving specific goals, and participants can earn cryptocurrency for completing tasks like research, writing articles, or playing games. Unfortunately, many people in frontier markets must be aware of these opportunities. That's why our community exists – to guide and teach people about them.

On January 28th, the CryptoHite team organised an Ask Me Anything (AMA) session with Faith Obafemi, a tech lawyer and tech policy advocate. Faith provided insights on earning income by working for DAOs. The session took place on our telegram channel @cryptohite1, and below is an unedited transcript of the AMA with Faith.

In this discussion, Faith explains the meaning of DAOs and how they operate. She also shares useful information on choosing a DAO to work for, including their recruitment process, payment modes, work culture, and environment. Anyone can earn cryptocurrency in the ecosystem by using their skills, such as writing, research, programming, designing, and business development. It's a path to earning in the ecosystem that could be more popular but worth considering.

Question: Could you provide more information about the topic of discussion - "Blockchain Income Opportunities: Earning Cryptocurrency by Working for DAOs"? What is it and what do we need to know?

Answer: If I had a dollar for every time someone asked me how I got into blockchain and cryptocurrency, I'd have a full bitcoin by now. However, most people are interested in how to make money in this field. The most popular methods are trading and programming, which require patience and expertise. I prefer to use my writing, research, and legal skills to earn cryptocurrency within the ecosystem. This path is less commonly travelled, but it's accessible to anyone with an open mind, an interest in the ecosystem, and a willingness to learn and earn.

In this discussion, I will focus specifically on how to earn cryptocurrency by working for DAOs (decentralised autonomous organizations). This opportunity is available to writers, researchers, programmers, designers, business developers, and anyone interested in the field. All you need is an eagerness to learn and earn within the ecosystem. So, let's dive in and explore this less common but promising avenue for earning cryptocurrency.

Question: This is very interesting. However, I'm a beginner and unfamiliar with the term DAO. Could you explain what a DAO is?

Answer: What is a DAO?

DAO stands for Decentralized Autonomous Organization. A DAO is an internet-based organisation that manages funds and labour to achieve a specific goal. For example, a DAO could be created to purchase a valuable document, like the United States Constitution, as was attempted by ConstitutionDAO. Alternatively, a DAO could be created to invest in venture capital, like MetaCartel. DAOs are decentralised, which means that members drive the organisation's activities and governance rather than hierarchical executives, as seen in traditional corporate entities. DAOs are autonomous because their funds and labour can be automatically distributed per governance outcomes. They are an organization because DAOs are essentially people with a specific goal that leverages the blockchain for coordination.

The DAO system is five years old and currently experiencing significant growth. According to DeepDAO, DAO treasuries collectively hold $8.2B worth of assets under management (AUM), with over 1.6 million members. As this discussion focuses on earning cryptocurrency by working for DAOs, we won't delve into how they work and other details. However, contributors from Gitcoin and BanklessDAO have published a comprehensive report titled "DAOs: The New Coordination Frontier" for those interested in learning more.

Criteria for Choosing a DAO for Work

Now that we've defined what a DAO is, you may be wondering how to choose a DAO to work for. Please note that these criteria are not absolute, but are meant to serve as guidance when searching for a DAO to work with.

Question: Great, now take us through the rest of the session. how do we get to work with them? What are the opportunities? Tell us what we need to know

After understanding what a DAO is, you might be wondering how to get involved with one and what opportunities are available. The following criteria should be considered when choosing a DAO to work with, although they are not absolute:

1. Recruitment Process: Some DAOs do not have a clear recruitment process, such as BanklessDAO, and rely on contributors who start with small tasks and get rewarded for their efforts, scaling up to full-time after a while. Other DAOs, like Sushi, follow a recruitment guide. It's essential to consider this criterion when choosing a DAO.

2. Payment Mode: DAOs use different payment modes, including salary, bounties, grants, or revenue sharing. It's crucial to confirm what payment mode the DAO uses before getting involved.

3. Work Culture and Environment: It's important to investigate what other members say about the DAO, such as whether members are welcoming or toxic. A positive work environment is essential.

Working with a DAO has numerous benefits, such as:

1. Perfect Grooming Ground: Joining a DAO is a perfect opportunity to learn new skills while still earning money. It can also look great on a CV.

2. Perfect Timing: 2022 is the year of DAOs, and they are receiving significant funding, leading to great opportunities.

3. Good Earnings: Some DAOs pay a base amount, plus a performance bonus, with core contributors averaging $90,000 annually, while protocol DAOs like Sushi pay some full-time contributors millions.

4. Location Independent: DAOs operate remotely, allowing anyone with the necessary skills to work from anywhere in the world.

5. Proof of Capability: Completing specific tasks in a DAO earns POAPs, which provide a verifiable way to prove skills.

6. Flexibility: Working for a DAO can be full-time, part-time, or occasional, depending on availability, and contributors get rewarded for their efforts. DAOs often reward contributors in governance tokens or stablecoin, according to their efforts.

Question: What are the challenges of working with DAOs? I guess it is not that easy and simple

Answer: Working with DAOs is a challenging task, as there are a number of challenges that come with it. Below, I have highlighted some of the difficulties I have encountered while working in DAOs.

1️⃣ Chaotic Onboarding:

The DAOs I have worked with have generally needed better onboarding procedures. For example, the person who was supposed to onboard me didn't show up twice without notice. In another instance, I joined a DAO and had yet to learn how I could contribute or what tasks I should undertake.

2️⃣ Discrimination Vibes:

As a black female with non-technical skills, I have encountered discrimination on several occasions. For instance, one DAO member suggested that I work with another member, who then went on a lengthy monologue about how they were not open to mentoring new interns. This was just one example of discrimination I have faced. However, it's important to note that your skills are what matter, not your technical ability. Anyone can contribute to a DAO, regardless of their profession or technical skills.

3️⃣ Finding Work:

Despite being a decentralised organisation, DAOs can still have silos and work done through direct messages. Unlike traditional organisations, where you get assigned tasks from your manager, in a DAO, you need to actively seek out work. This can be a challenge for people who need to be more assertive or comfortable promoting themselves. A potential solution to this problem could be an automated project management system that allows DAOs to list available tasks and their corresponding remuneration. Individuals with the required skills can then choose to take up an available task and get paid for their efforts.

4️⃣ Uncertainty with Payments:

In some DAOs, there can be confusion around payment procedures, including how individuals are paid and what they are being paid for. For instance, in one DAO, I received payment in my wallet but had yet to learn what it was for. It was impossible to determine if I had been overpaid or underpaid. As mentioned earlier, an automated project management solution could help solve this problem. It could provide a clear record of tasks performed and their corresponding payments, ensuring transparency and accountability.

Question: Can you suggest some DAOs to work with based on your experience?

Sure, here are my top picks:

1. Smart Contract Research Forum (SCRF)

SCRF is a platform that connects academia and industry for research on blockchain and crypto. Although not exactly a DAO, it functions like one and has plans to transition into a DAO in future. SCRF provides opportunities for research summaries, events, podcast, mentorship, etc. To get started, create an account on the Forum, read some posts and make insightful comments.

2. GitcoinDAO

GitcoinDAO is a decentralised community effort to complement Gitcoin LLC. To become a contributor, fill out an application form. Once approved, you can proceed to onboard, and receive appropriate discord permissions to contribute to conversations and projects.

3. BanklessDAO

BanklessDAO is a decentralised community that aims to help the world go bankless. To become a contributor, join their discord and also join a guild, a specialised subgroup within the DAO comprising people with specific skills. For example, they have a Writer’s Guild and a Legal Guild.

Conclusion

Thank you for finding the DAO tips helpful. As a parting remark, I'd like to let you know that my experience working in DAOs since 2021 has been invaluable, providing unique opportunities that I wouldn't have found in a traditional company. Despite some challenges, it has been financially rewarding, with some individuals earning an average of $8,000 per week by working full-time for multiple DAOs. Although I can only commit part-time, with hard work and dedication, anyone can achieve similar success.