Rage-quitting in Crypto: Dramatic Exit from DAOs

Rage-quit is a process whereby a DAO member withdraws from part or all of their stake, receives a proportionate share of the assets in the DAO repository and terminates their participation.

What is Rage-quit?

Rage-quit is a process whereby a DAO participant withdraws part or all of their stake, retains their proportionate share of the assets in the DAO repository and terminates their participation. Rage-quit was originally created as a key part of the Moloch DAO V1 framework and has remained a core feature of all subsequent versions of the Moloch DAO framework. Since then, it has also been introduced as an option in other DAO frameworks such as Zodiac by Gnosis Guild and Dandelion Org by 1Hive, often under the name “exit”.

In a Moloch DAO implementation, rage-quit can be used by any participant at any time, unless they have already voted “Yes” on an active offer. It is important to note that a participant who has not voted Yes (i.e. has voted No or not voted at all) has the right to exit during the grace period between acceptance of the proposal and its execution.

Rage-quit guarantees full ownership of its share of assets in the capital of the DAO, even though these assets may be collectively used to achieve the objectives of the DAO. This same ownership protects minority members from the tyranny of the majority

Rage-quit lowers the barrier for all people – rich and less rich – to pool their assets to achieve common goals.
A DAO that includes a Rage-quit feature attracts members who see participation in DAO activities as more important than their share of the treasury, which encourages more interaction among the remaining DAO members.

DAOhaus is a place for targeted DAO communities that has evolved from a 2019 hackathon project into a full-fledged platform with +1,000 DAOs. DAOhaus gives users the ability to add DAO features to their projects without worrying about the complexity of writing smart contracts or creating dApps. DAOs can be launched via DAOhaus in a few clicks.

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