PERCEPTION.

Working without being asked sounds swell, but discerning adults will wonder how one gets paid in such a system. Indeed, most contributors will expect a reward for their work.

The payment process within a DAO works as follows. The organization sells services or products and sets aside a pool of the generated revenues for salaries and rewards. Since contributors don’t have a contract, there are no classical ways of deciding what kind of pay is fair for each contributor. Instead, many DAOs turn to tools such as Coordinape to tackle this challenge. These solutions allow organizations to create “circles” of contributors (the equivalent of teams). Each member of the circle is given points that they can allocate to other members of the circle over a certain period of time. The higher the perceived “value” of the work done during that period, the higher the number of points received, and the higher the financial reward.