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Giveth Governance DAO

Sector: Tertiary sector · Industry: Non-profit organisations · Organisation: Giveth.io · Maturity level: Production

Central power concentration in boards leads to intransparency and slow processes in non-profit organizations. Giveth.io implemented decentralized decision-making via Soulbound Reputation Tokens on Ethereum with Quadratic Voting for weighting voting rights. The reputation system quantifies member contributions and limits the influence of large token holders.

Documentation status

Description

Giveth was founded in 2016 with the aim of revolutionising the donation system through blockchain. The platform enables donors to give directly to projects without intermediaries. GIVernance is the governance system: GIV token holders can vote on platform development, budget allocations, and strategic decisions.

Giveth is one of the oldest Ethereum DAOs. The governance model: GIV tokens are distributed to active community members and donors. Token holders vote on proposals in the Giveth Forum, which are then executed on-chain. All votes are publicly and immutably recorded. GIVback programme: When users donate to verified NGOs on Giveth.io, they receive GIV tokens back — incentivising donation behaviour and strengthening the community. The Giveth model demonstrates how DAO governance can work for non-profit organisations: instead of a foundation board and closed decision-making, all token holders make decisions together. DAO Operations Working Group: operational team commissioned and controlled by the GIV token holder collective. Transparency advantages over traditional NPOs: all budgets, expenses and decisions are publicly accessible — creating radically more trust than annual reports.

Perspectives

B2B — organisations perspective

Non-profit organisations can involve their members and donors directly in decisions through blockchain-based DAO governance — completely transparent, documented on-chain, without opaque board decisions.

B2C — consumers perspective

Community members and donors can vote directly as GIV token holders on the use of donations and the development of the platform — from passive donors to active co-creators.

Employees perspective

Employees and volunteers gain direct influence on strategic decisions through the reputation system according to their contributions to the organisation. The automation of repetitive administrative tasks through the DAO structure allows them to focus more on the organisation’s core mission.

Benefits

General

B2B — organisations

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

The use case utilises Ethereum as the main blockchain for issuing soulbound reputation tokens, which are non-transferable and represent members’ contributions. Layer-2 solutions like Optimism Rollup are used for cost-effective voting processes, while TheGraph protocol provides real-time governance dashboards.

Implementation examples

Giveth DAO Governance Implementation

Traditional non-profit management suffered from centralised power concentration, lack of transparency, and slow decision-making processes, which undermined donor trust. The DAO structure was intended to enable democratic participation and reduce administrative costs through automation.

Giveth.io implemented a complete DAO governance structure with Soulbound Reputation Tokens and Quadratic Voting for decentralised decision-making.

Giveth.io addressed the problems of traditional hierarchical management by implementing an innovative DAO structure based on Ethereum. The system uses Soulbound Reputation Tokens to quantify member contributions and Quadratic Voting to limit the power of large token holders. Since Q2 2024, the DAO has managed 1,200 active members and assets worth 4.8 million US dollars, with a 63% higher participation rate in votes.

45% lower administrative costs through automation, 30% higher willingness to donate in DAO-managed projects, 63% higher participation rate in votes.

Sybil attacks were reduced by 89% through Proof-of-Humanity verification, successfully minimising fake accounts. Legal recognition was achieved by registering as a Swiss association to obtain tax benefits.

Tags

DAO, Governance, Non-Profit, Decentralisation, Reputation System

Sources

  1. Giveth Forum - Givernance
  2. Giveth Forum - DAO Operations Working Group