Overview

This documentation describes planned functionality and processes that MakerDAO has not yet implemented. Be aware that parts may be inaccurate or out of date.

SubDAOs are semi-independent, specialized DAOs that are linked to Maker Governance. They are designed to increase innovation and experimentation while limiting risk to Maker Core. There are different types of subDAOs, and each type has a different role.

Overview

SubDAOs have each their own unique governance token, governance processes, and workforce. They are driven by self-determined, self-aware values and aspirations.

In most respects, subDAOs are self-standing, unique DAOs. Their semi-independent nature helps segregate complexity from Maker Core, alleviate the cognitive load of governance, and derisk MakerDAO by sandboxing the effects of subDAO operations.

However, subDAO governance processes run on top of MakerCore governance infrastructure and MKR holders retain control of many of the subDAOs assets.

SubDAO Types

SubDAOs are divided into three types:

• FacilitatorDAOs are tasked with organizing the internal mechanisms of MakerDAO, AllocatorDAOs, and MiniDAOs.

• AllocatorDAOs can generate Dai directly from MakerDAO and allocate it as they see fit across the broader DeFi ecosystem. They also manage public-facing entry points to the Maker Ecosystem and are able to spin off miniDAOs.

• MiniDAOs are spun off by AllocatorDAOs as outgrowths of an idea or product they are interested in further decentralizing, promoting, or otherwise consolidating. MiniDAOs are experimental offshoots and may be very short-lived.

FacilitatorDAOs and AllocatorDAOs are incubated directly by MakerDAO and are called Major SubDAOs while MiniDAOs are incubated by AllocatorDAOs and are called Minor SubDAOs.

Page last reviewed: 2023-08-03 Next review due: 2023-11-03