🍰Why Cakes?

A small slice of a big cake is better than a big slice of a little cake.

Many people want to join and contribute to DAOs but don't know how. When we asked "Why?" would-be contributors cited many reasons. Most boil down to the simple fact that there is a steep learning curve of terminology, processes, sporadic apps and platforms... basically it's all too hard; It's unclear how they can get involved and how they will be renumerated.

We're looking to make it easier for the next generation of DAOists shifting from startups, web2 and exploring opportunities in web3.

For that reason, we chose an analogy over the hard industry terminology related to DAOs.

A Cake is a fun way to illustrate equity value in contributions. We could have used a 'Pie' analogy made famous by Mike Moyers' "Slicing pie" method to tracking startup equity (read Mikes' books if you want to know more about it). Besides, not being aware of the 'Pie' method by name at the time Accord was conceived; the 'Cake' has more fun and related terms we could use so it stuck.

Here's some Cake terms we use to simply complex ideas:

• Cakes are organisations, sub-organisations, team projects, grant pools. All things that hold value in typical DAO operations can be thought of as a Cake.

• Ingredients - Contributions

• DOUgh - The equity the DAO Owes yoU (like I.O.Us but for DAOs)

• Slice - An individuals' equity in the Cake (measured in DOU and Percentage)

• Baking - A pricing event (TGE, external investor) for the Cake where the equity slice is valued and transferred to the contributor for the sum of their contributions.

The better the ingredients, the better the Cake. That means the more valuable the contributions, the bigger the cake will be.

If you have a sweet tooth, you'll know that:

A little slice of a big Cake is better than a big slice of a little Cake