[Moloch DAO](https://molochdao.com/) is a grants giving DAO formed by Ameen Soleimani, Cassandra Shi and too many other notable individuals to include in this report. The primary objective of the Moloch DAO is to provide grants to the Ethereum community for development and assorted work.

Moloch DAO formation was strongly motivated by the ["Tragedy of the Commons"](http://science.sciencemag.org/content/162/3859/1243.full) which describes a situation in a shared-resource system where individual users acting independently according to their own self-interest behave contrary to the common good of all. By each individual in Ethereum acting in their own self interest Guild members conclude this DAO is the remedy.

An example of how Moloch DAO might benefit the Ethereum community is [proposal 26](https://molochdao.com/proposals/26) was submitted for [Kyokan](https://www.kyokan.io/). As part of the proposal, [Matthew Slipper](https://twitter.com/mslipper) will continue to work part-time on ETH 2.0 reporting directly to Danny Ryan. For which Kyokan will be put on retainer for 37 Moloch Shares, approximately $6.1K USD at the time of this writing.

Another example is [proposal 22]() in which [Kyokan](https://www.kyokan.io/) was paid for 24 shares ($3.9K USD) for the drafting of [The State of Eth 2.0 Report](https://docs.google.com/document/d/1PS0k9MaKPdPwEw3Uh9rq7USjq7LcSpT6ICQUXRij4YE).

Proposals for the Moloch DAO must be submitted by a member of the DAO. Proposals are voted on in the order they are submitted. The voting period for each proposal is 7 days. During the voting period, members can vote. Proposal votes are determined by simple majority, with no quorum requirement. At the end of the voting period, proposals enter into a 7 day grace period before the proposal is processed.

A key strategic advatange is the ability for Guild members to ragequit and exit at any time, Moloch protects its members from 51% attacks and from supporting proposals they vehemently oppose.

In this fashion, the ragequit mechanism also provides an interesting incentive in favor of Guild cohesion. Guild members are disincentivized from voting Yes on proposals that they believe will make other members ragequit. Those who do vote Yes on contentious proposals will be forced to additionally dilute themselves proportional to the fraction of Voting Shares that ragequit in response.

Helpful links:

Thorough explanaion of Moloch DAO https://github.com/MolochVentures/moloch/tree/5e82f17d5efa894976e50701cf3fa2f88d2372b5

Moloch DAO website
https://molochdao.com/

Moloch DAO whitepaper
https://github.com/MolochVentures/Whitepaper/blob/master/Whitepaper.pdf

Moloch Summoning Guide
https://medium.com/molochdao/moloch-summoning-guide-12a2a288e0ff