TribalDAOs Risk Assessment

This working document outlines key risks identified through research, use case mapping, and community engagement across our TribalDAO development process. Each risk includes real-world context and detailed mitigation strategies to help us design responsibly, reduce harm, and ensure long-term adoption and trust across whānau and Indigenous collectives.

#	Risk Category	Description	Impact & Evidence	Mitigation Strategy
1	Cultural Alignment	DAO tools may not align with tikanga, consensus decision-making, or relational authority models.	Seen in whānau trust kōrero and simulations where voting models feel foreign Risk of communities avoiding the system if tikanga isn’t upheld	Co-design modules with kaumātua and hapū Include Elder Advisory Councils and consensus options Test governance patterns with whānau-led pilots
2	Accessibility & Technical Complexity	Tools like wallets and DIDs may be confusing or intimidating for whānau or elders.	Pilot onboarding revealed confusion around terms and flows Risk of low adoption if tools feel too foreign	Mobile-first UI with plain language Step-by-step walkthroughs Community-led training and support roles
3	Smart Contract Risks	Errors in governance or treasury contracts could result in lost funds or broken trust.	Known risk in any blockchain system Especially critical for taonga like whenua and shared pūtea	Modular contracts Third-party audits Test in low-risk environments Emergency pause controls
4	Legal and Regulatory Ambiguity	DAOs and tokens are not clearly recognised under NZ law or trust structures.	Questions raised around trust board authority and DAO actions Unclear legal standing without proper structures	Legal partnership with Māori tech lawyers Optional legal wrappers (e.g. trust + DAO hybrid) KYC-ready DID system for opt-in compliance
5	Centralisation of Power or Voice	Token imbalance or contributor dominance could create governance bias.	Observed in simulations where active users dominated decisions Risk of community disengagement	Multi-token model (e.g., role, community, culture) Cap holdings Reward active engagement Publish governance stats