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Best Practices
Best practices that we have seen work with the most successful squads.
There is no single best way to run a squad. While we have recommendations, every group is different. So we focus on providing flexibility so you can. 🌈
Before forming your squad into important, form as clear of an end mission or goal as possible. This will align your initial members around a shared philosophy and attract members with a similar vibe if you want to grow. A bit more on missions:
- Shared Mission: Why does your squad exist? Do you want to support a cause or ecosystem? Do you collect community relics that express your shared identity? Communicate this clearly to your prospective members.
- For financial missions: Outline your return-on-investment (ROI) goals, time horizons, and exit strategy: What ROI %, if any, do you want to achieve before selling your investments? At what point would you sell your assets and redistribute funds to members? Establishing this upfront or agreeing to figure it out later is best.
Sharing an open Funding Round or an open NFT Purchase Proposal can create a lot of engagement and momentum in your squad.
While activating your Vault is exciting, new members join and get engaged after your first transaction has been defined. Set your sights on a collection, a specific NFT, or a community mint event, and get there as quickly as possible to create momentum for your squad.
To purchase an NFT, you need funds to buy it. You can raise funds from Members through Funding Rounds. Sharing an open Funding Round with your squad with a clear transaction you want to make with those funds will excite your members.
If you have aligned on a specific NFT, you can add this NFT as a purchase proposal and share the proposal page in your group chat. It's helpful to open a Funding Round before you send out this proposal.
Active members that propose and vote on proposals should be assigned the Signing Member role. More passive members who contribute capital should be assigned the Non-Signing Member role.
Particularly for large community squads of 20+ members, we recommend keeping the number of Signing Members relatively low (below ~15 people), so that not too many members can operate the funds, and you can keep the signer threshold relatively low as well. Members whose role is mostly contributing capital to the Vault should be assigned the Non-Signing Member role. They still are assigned an equity ownership stake if they contribute to the fund.
Ahead of any purchases, we recommend that you agree on the requirements for a specific investment. The most important element to agree on is how many members agree before a buy or sell transaction is made.
Independent of squad size, Lore recommends a signer threshold of at least two and five at maximum. Signer thresholds that are too low result in security risks, while signer thresholds that are too high result in the slow execution speed of a squad.
Lower thresholds typically work better for operating your Vault than higher ones. While it may seem intuitive to have more than 50% of all members vote on every transaction (e.g. setting up a 17-of-30 multisig), this will significantly reduce the execution speed of your Squad, which can be disadvantageous, particularly in NFT markets where assets are sniped quickly.
Discussing investment opportunities and making decisions typically happen off-platform on your squad's messaging thread. Popular off-platform decision-making mechanisms among successful squads are:
- Discord emoji voting: If your Squad uses Discord to communicate (see "Communicating with your Squad" below), you can use emoji voting or Discord bots for polls.
- Telegram polls: If your Squad is using Telegram to communicate (see "Communicating with your Squad" below), creating a poll on Telegram can work for some Squads.
Our voting mechanisms are flexible and can be customized to your Squad’s preferences, so ultimately, each Squad should do what works best for them.
Squads are groups of friends and larger communities, inherently social. Squad members will discuss various NFT investment opportunities, such as buys, sells, mints, etc. You must provide a platform for your Squad to communicate with each other effectively. Here are some options for how you can communicate with your Squad to ensure everyone is in the loop:
- 1.Create a Discord server: Discord is the go-to way for web3 communities to chat, work, and build together. Many Squads already use Discord as their home base; we automatically set up all Squads with a private Discord server within our larger Lore Discord, but we recommend you create your own.
- 2.Create a Telegram group: Telegram is a smaller group-chat version of Discord, enabling centralized conversations for each Squad and simple voting, event management, etc. You can use Telegram with your Squad or a similar app to create group chats.
- 3.Create a Discourse: Discourse, or equivalent forum software, allows for longer-form conversations within a community. You can use Discourse with your Squad's existing group chat and/or Discord server or independently.
Last modified 1mo ago