Tracking the Rise of Impact DAOs with Deepa Chaudhary (Impact DAO Media)

Deepa Chaudhary's Journey into Web3

Deepa Chaudhary, founder of Impact DAO Media, began her career as a social entrepreneur working with Salesforce Foundation. Through her work, she developed a passion for using technology to accelerate social impact.

Chaudhary's foray into crypto began when she encountered a tweet about an NFT mint for COVID relief in India. Intrigued by the concept of mobilizing funds through crypto, she began tracking the campaign and witnessed Vitalik Buterin's landmark billion-dollar donation of Shiba Inu coins. This experience opened her eyes to the potential of crypto for social good and led her down the rabbit hole of impact DAOs.

The Power of Crypto for Social Good

Chaudhary's journey led her to recognize the transformative potential of cryptocurrency, particularly in the realm of social impact.

"Crypto can totally change [financial inclusion] overnight. You don't need banks anymore. It's called leapfrogging into the future, literally."

She cites the example of El Salvador adopting Bitcoin as legal tender, enabling its largely unbanked population to access digital wallets and participate in a more inclusive financial system. This move, she argues, exemplifies crypto's potential to empower individuals and communities.

Ukraine DAO: A Case Study in Decentralized Aid

The emergence of Ukraine DAO in response to the 2022 Russian invasion provided a compelling example of how DAOs could revolutionize humanitarian aid. Chaudhary, who meticulously documented the DAO's activities, highlights three key advantages of this approach:

1. Radical Efficiency: By eliminating intermediaries, Ukraine DAO significantly reduced the overhead costs typically associated with traditional aid organizations.
2. Transparency: The transparent nature of blockchain technology allowed donors to track their contributions and see exactly how funds were being used.
3. Censorship Resistance: Unlike traditional platforms like Patreon, which shut down a Ukrainian fundraising campaign, Ukraine DAO operated independently of centralized control, ensuring uninterrupted aid delivery.
   

"They continued to raise funds, they weren't interrupted because they were on the blockchain, they were unstoppable."

This event solidified Chaudhary's belief that DAOs represent the future of social impact, offering a more agile, transparent, and resilient alternative to traditional models.

Demystifying Impact DAOs: Human-Driven and Evolving

While the concept of DAOs is often associated with automation and autonomy, Chaudhary emphasizes that impact DAOs are fundamentally human-driven enterprises.

"Impact DAOs are very human-driven. They're not that autonomous...Relationships matter because you're going to work together on the internet."

She clarifies that while blockchain technology underpins key functions like multi-signature wallets and on-chain voting for financial decisions, much of the work still relies on familiar internet tools like Zoom and Discord. Impact DAOs thrive on collaboration, shared purpose, and the ability to connect with like-minded individuals globally. Furthermore, Chaudhary stresses that DAOs are not synonymous with constant voting. She advocates for a balanced approach that prioritizes efficient decision-making and acknowledges that not every decision requires a formal vote.

Sustainability and the Future of Impact DAOs

Chaudhary argues that for impact DAOs to achieve long-term sustainability, they must move beyond grant-based funding models and explore alternative revenue generation strategies.

"Trade is better than aid."

She envisions a future where impact DAOs leverage NFTs and crypto-native payment systems to create marketplaces for ethical goods and services, promoting a more equitable and sustainable form of economic exchange. This shift towards self-sufficiency, she believes, is crucial for impact DAOs to achieve their full potential and drive lasting social change.