Rage-quit

Understanding Rage-quit

Rage-quit is the term used to describe the action taken by a member of a DAO to exit their stake, either partially or completely. This involves withdrawing a proportionate share of the assets from the DAO’s treasury and terminating their involvement.

The concept of rage-quit was first introduced as a fundamental aspect of the V1 Moloch DAO framework and has since remained a key feature in all subsequent versions of the Moloch DAO framework. Other DAO frameworks, such as Gnosis Guild’s Zodiac and 1Hive’s Dandelion Org, have also incorporated rage-quit as an option, often referred to as “exit.”

In the Moloch DAO implementation, any member can initiate the rage-quit process at any time, except if they have already voted “Yes” on an active proposal. It is worth noting that a member who has not voted “Yes” (i.e., they have voted “No” or have not voted at all) can rage-quit during the grace period between when a proposal has passed and when it is executed.

Rage-quit ensures that all DAO members maintain full control over their respective share of the assets held in the DAO’s treasury, even when those assets are available for collective deployment to further the objectives of the DAO. This feature also protects minority members from potential dominance by the majority, making it easier for individuals, regardless of their wealth, to pool their assets and work towards common goals.

The inclusion of the rage-quit feature in a DAO attracts members who prioritize active participation in the DAO’s activities over their individual share of the treasury. This fosters stronger alignment among the remaining DAO members.

Author: Collectively authored by DAOhaus

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