A Multi-Sig and DAO Collaboration Platform on Solana
A multi-sig wallet is a wallet that allows for a team to sign off on transactions together and set thresholds for that (i.e. how may people need to sign off at what threshold amounts) so they can make payments a simple and intuitive experience.
The multi-sig wallet is the core of the squad and squad types include:
(1) Pure multi-sigs; and
(2) Teams — which seem to add a percentage voting power or decision-making weight on transaction decisions.
Multi-sigs are essential on many levels of project development as a tool for communities to actually become DAOs and not just governed by one person. If a group has any assets in self-custody on-chain multi-sig is immediately relevant even in a small centralised team.
It really seems to be one of the missing pieces out there right now.
At what stage of development are these tools? Can people start using it now?
Right now it’s good for small teams and communities; family-style. It’s basically ready, and more functionality is being explored. They are approaching 2000 squads and adoption is growing, but ultimately more DAO communities just need to be aware that multi-sig wallets are a more responsible way of holding funds.
Jedi Sherpa shared on the call how it really changes the whole game once you get the control of the funds out of the hands of just one person, who could risk being a single-fail point.
A DAO is effectively removing any single failure point and empowering people to self-organise and having ways those resources flow in that ecosystem. In that regard, the multi-sig is almost the center of the torus in that sphere, which modulates how the energy is flowing in that torus. You need that to have that, otherwise you’re doing the same old thing if it just comes down to one person.
As communities start to understand better how DAOs form and what the essence is and how to self-organise in that way, the need for multi-sig wallets will become really apparent. Particularly given how it makes holding, decision-making and distribution of resources safer.