What Is Rage-quit?

Rage-quit is the process where a member of a DAO exits part or all of their stake, leaves with a proportional share of the assets in the DAO’s treasury, and quits their participation.

Rage-quit was first developed as a key part of the V1 Moloch DAO framework and has remained a core feature of all subsequent versions of the Moloch DAO framework. It has also since been introduced as an option within other DAO frameworks, such as Gnosis Guild’s Zodiac and 1Hive’s Dandelion Org, often under the label of “exit.”

In the Moloch DAO implementation, rage-quit can be invoked by any member at any time, unless the member has already voted “Yes” on an active proposal. Importantly, a member who has not voted “Yes” (i.e., they have voted “No” or have not voted at all) can rage-quit in the grace period between when that proposal has passed and when it is executed. 

Rage-quit, therefore, ensures that all members of the DAO maintain full custody over their share of the assets in the DAO’s treasury, even while those assets are available to be collectively deployed to advance the DAO’s purpose. That same property also protects minority members from the tyranny of the majority, lowering the barrier for all individuals - wealthy and less-wealthy, alike - to pool their assets to advance shared goals.

A DAO that includes the Rage-quit feature attracts members who value participation in the DAO’s activities over their quittable proportion of the treasury, fostering stronger alignment among the remaining DAO members.

Author: Collectively authored by DAOhaus

DAOhaus is the home for purpose-driven community DAOs, and has grown from a 2019 hackathon project into a fully-fledged platform with +1,000 DAOs. DAOhaus enables users to add the capabilities of DAOs to their own projects without having to worry about the complexities of writing smart contracts or building dApps. You can launch a DAO via DAOhaus in a few clicks.