Best practices that we have seen work with the most successful Squads.
Before forming your Squad into important to form as clear of an end mission or goal as you can. This will align your initial members around a shared philosophy and attract members with a similar vibe if you ever 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? It's best to establish this upfront or agree to figure it out later.
While the activation of your Squad is an exciting moment, new members start to join and get engaged after your first transaction has been defined. Set your sights on a collection, a specific NFT, 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 get your members excited.
If you have aligned on a specific NFT, you can also 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.
Particularly for large community Squads of 20+ members, we recommend to keep the number of Signing Members relatively low (below ~15 people), so that not too many members have access to operating the funds, and you can keep the signer threshold relatively low as well. Members who's role is mostly to contribute capital to the Squad should be assigned the Non-Signing Member role. They still are assigned an equity ownership stake if they contributed to the fund.
Ahead of any purchases, we recommend that you agree what the requirements are for a specific investment to be made. The most important element to agree on is how many members have to agree before a buy or sell transaction is made.
Lower thresholds typically work better for operating your Squad 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 mechanism among successful Squads are:
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 as well as larger communities, and they are inherently social. Squad members will be discussing various NFT investment opportunities, such as buys, sells, mints, and many more. It is important that you 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 are already using Discord as their home base; we automatically set up all Squads with a private Discord server within our larger Prysm Discord, but we recommend that you create your own as well.
- 2.Create a Telegram group: Telegram is a smaller group-chat version of Discord, enabling centralized conversations for each Squad as well as simple voting, event management, etc. You can use Telegram with your Squad or a similar app that has the ability to create group chats.
- 3.Create a Discourse: Discourse, or other equivalent forum software, allows for longer-form conversations within a community. You can use Discourse together with your Squad's existing group chat and/or Discord server, or completely independently.