# How It Works

This page breaks down the mechanics: what we build, how you earn equity, and how governance keeps the community in control.

***

## The Simple Version

1. **You** [**contribute**](/contributors/contribute.md) — through work, residency, or capital
2. **You earn** [**EQTBLT**](/token-economy/eqtblt.md) — non-transferable equity tokens
3. **You gain access** — to [Foundries](/the-foundry/foundry.md), community spaces, [housing](/onboarding/member-housing.md)
4. **You** [**govern**](/governance/governance.md) — vote on decisions proportional to your stake

The more you put in, the more you own. The more you own, the more voice you have.

***

{% tabs %}
{% tab title="What We Build" %}

### Four Types of Infrastructure

#### 🔧 Foundries

The physical hubs where real work happens.

Every [Foundry](/the-foundry/foundry.md) has [workshops](/the-foundry/foundry/workshop.md) with [tools](/the-foundry/equipment.md), [training programs](/the-foundry/programs.md), and material processing capabilities. This is where [members](/membership/membership.md) learn [construction skills](/divisions-and-roles/construction/trades.md), fabricate materials, and coordinate projects. When you work at a Foundry, you're earning [equity](/token-economy/eqtblt.md) while creating tangible value.

**Seven zones:** [The Yard](/the-foundry/foundry/yard.md) (materials), [The Depot](/the-foundry/foundry/depot.md) (storage), [The Workshop](/the-foundry/foundry/workshop.md) (fabrication), [The Forge](/the-foundry/foundry/forge.md) (heavy manufacturing), [The Station](/the-foundry/foundry/station.md) (operations), [The Hall](/the-foundry/foundry/hall.md) (community), [The Loft](/the-foundry/foundry/loft.md) (administration).

👉 [Explore The Foundry](/the-foundry/foundry.md)

***

#### 🏛️ Community Spaces

Permanent shared assets that anchor the community.

Gathering halls for events and meetings. Gardens and green spaces. Childcare facilities. These are owned by all members collectively and will never be sold off. They're the commons that make a neighborhood a community.

***

#### 🏪 DAO Businesses

Commercial operations run by and for [members](/membership/membership.md).

Retail stores, service businesses, co-working spaces. Revenue supports DAO operations while creating [work opportunities](/contributors/opportunities.md) for members. You can earn equity working here, and spend [EQTBLT](/token-economy/eqtblt.md) here through the [DAOBusiness contract](/developers/contracts/dao-business.md).

***

#### 🏠 Residential Properties

Housing where living means building stake.

When you rent a unit in a DAO property, a portion of your [payment](/equity-and-membership/rent-payments.md) converts to [EQTBLT](/token-economy/eqtblt.md). You're not just a tenant—you're a [member](/membership/membership.md) building [equity](/equity-and-membership/how-it-works.md) in the community around you. If you move to another DAO property, your stake [follows you](/equity-and-membership/portability.md).

👉 [Member Housing](/onboarding/member-housing.md)
{% endtab %}

{% tab title="Earning EQTBLT" %}

### How You Build Stake

[EQTBLT](/token-economy/eqtblt.md) is your equity in the collective. Here's how you earn it:

#### Through Work

Complete [tasks](/contributors/tasks.md) for the DAO and receive EQTBLT based on the work:

| Type                                                                                                                                                                                                                      | Rate             |
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------- |
| Basic tasks (cleanup, sorting, admin)                                                                                                                                                                                     | 10-20 EQTBLT/hr  |
| Skilled work ([carpentry](/divisions-and-roles/construction/trades/carpenter.md), [electrical](/divisions-and-roles/construction/trades/electrician.md), [plumbing](/divisions-and-roles/construction/trades/plumber.md)) | 25-50 EQTBLT/hr  |
| Specialized ([engineering](/divisions-and-roles/engineering.md), [development](/divisions-and-roles/technology/software.md), design)                                                                                      | 50-100 EQTBLT/hr |
| Leadership ([project management](/membership/ranks/project-lead.md), coordination)                                                                                                                                        | Variable         |

Rates depend on task complexity, urgency, and your [membership rank](/membership/ranks.md). Higher ranks unlock higher-paying opportunities.

👉 [Start Contributing](/quick-start/quick-start-builder.md)

***

#### Through Residency

Live in a DAO property and earn [EQTBLT](/token-economy/eqtblt.md) from [rent](/equity-and-membership/rent-payments.md):

* **Base conversion:** Standard percentage of monthly rent (7-12%)
* **On-time bonus:** +10% for consistent payment
* **Tenure bonus:** +5-20% based on how long you've been there
* **Rank bonus:** +0-15% based on your [membership level](/membership/levels.md)
* **Participation bonus:** Extra for active [governance](/governance/governance.md) involvement

👉 [Member Housing](/onboarding/member-housing.md) · [Equity-Building Leases](/equity-and-membership/equity-leases.md)

***

#### Through Governance

Active participation earns additional [EQTBLT](/token-economy/eqtblt.md):

* [Voting](/governance/voting.md) on [proposals](/governance/proposals.md)
* [Committee work](/operations/working-groups.md)
* Community contributions

***

#### Through Training

Learn at [The Foundry](/the-foundry/foundry.md) and earn while you learn. [Certifications](/membership/progression.md) unlock higher-paying work opportunities through [training programs](/contributors/training.md).
{% endtab %}

{% tab title="Governance" %}

### Member Control

Built By DAO is governed by its [members](/membership/membership.md) through [on-chain voting](/governance/voting.md). No board of directors. No outside control.

#### How Proposals Work

1. **Submit** — Any member can [propose](/governance/proposals.md) (requires 2 [BLTBY](/token-economy/bltby.md) stake)
2. **Review** — Community discusses during review period
3. **Vote** — [EQTBLT](/token-economy/eqtblt.md) holders vote on-chain
4. **Execute** — Approved proposals execute automatically via [smart contracts](/developers/contracts/governance.md)

#### [Voting Power](/governance/voting.md)

Your voting power comes from:

* [**EQTBLT**](/token-economy/eqtblt.md) **balance** — More equity = more base power
* [**Rank multiplier**](/membership/ranks.md) — Higher ranks have more weight
* [**Quadratic scaling**](/governance/voting.md) — Diminishing returns on large holdings
* **4× ceiling** — Nobody can have more than 4× the minimum power

This design prevents any single member—or any group of wealthy [investors](/investors/invest.md)—from dominating governance.

#### [Treasury Safety Rails](/governance/safety-rails.md)

Even if a malicious proposal passed, these limits protect the [treasury](/governance/treasury.md):

* **Per proposal:** Max 10%
* **Daily:** Max 5%
* **Monthly:** Max 20%
* **Reserve floor:** 15% always retained

👉 [Governance Overview](/governance/governance.md) · [Safety Rails](/governance/safety-rails.md)
{% endtab %}

{% tab title="Membership" %}

### 14 Ranks of Progression

You start as a [Seeker](/membership/ranks/seeker.md) and progress through contribution:

| Level | Rank                                                      | Description                     |
| ----- | --------------------------------------------------------- | ------------------------------- |
| 1A    | 🌱 [Seeker](/membership/ranks/seeker.md)                  | New member, learning the ropes  |
| 1B    | 🌿 [Apprentice](/membership/ranks/apprentice.md)          | Working with a mentor           |
| 2     | 🔧 [Contributor](/membership/ranks/contributor.md)        | Reliable individual contributor |
| 3A    | ⚙️ [Operator](/membership/ranks/operator.md)              | Owns a workstream               |
| 3B    | 🎯 [Specialist](/membership/ranks/specialist.md)          | Handles complex work            |
| 4     | 👥 [Crew Lead](/membership/ranks/crew-lead.md)            | Leads a small team              |
| 5     | 📋 [Project Lead](/membership/ranks/project-lead.md)      | Coordinates multiple teams      |
| 6     | 🧭 [Guide](/membership/ranks/guide.md)                    | Leadership begins               |
| 7     | 🏛️ [Community Lead](/membership/ranks/community-lead.md) | Community-level leadership      |
| 8A    | ⚓ [Anchor](/membership/ranks/anchor.md)                   | Organizational anchor           |
| 8B    | 🖥️ [Platform Lead](/membership/ranks/platform-lead.md)   | Platform leadership             |
| 9A    | 🛡️ [Guardian](/membership/ranks/guardian.md)             | Governance guardian             |
| 9B    | 🎯 [Strategist](/membership/ranks/strategist.md)          | Strategic leadership            |
| 10    | 🏛️ [Steward](/membership/ranks/steward.md)               | Organizational steward          |

**What rank gets you:**

* Higher [EQTBLT](/token-economy/eqtblt.md) rates for work
* Greater [governance voting power](/governance/voting.md)
* Access to more responsibilities
* Leadership opportunities

👉 [All Ranks](/membership/ranks.md) · [Progression System](/membership/progression.md)
{% endtab %}

{% tab title="Tokens" %}

### Two Tokens, Different Purposes

#### 💎 [EQTBLT](/token-economy/eqtblt.md) (Equity Token)

**The ownership token.**

* Earned through contribution ([work](/contributors/contribute.md), [residency](/equity-and-membership/equity-leases.md), [governance](/governance/governance.md))
* Non-transferable—can't be bought, sold, or traded
* Gives [voting power](/governance/voting.md) in governance
* Redeemable for DAO services at \~$1 value
* Unlimited supply (grows with activity)

EQTBLT is soul-bound. Your equity reflects your contribution, not your wallet size. See the [EQTBLTToken contract](/developers/contracts/eqtblt-token.md).

***

#### 💜 [BLTBY](/token-economy/bltby.md) (Utility Token)

**The transaction token.**

* Purchased through [investment](/investors/invest.md) or exchanges
* Fully transferable and tradeable
* Used for staking, payments, [liquidity](/token-economy/liquidity.md)
* 7 billion max supply
* Market-determined price

BLTBY lets you participate financially. EQTBLT gives you governance power. The separation is intentional. See the [BLTBYToken contract](/developers/contracts/bltby-token.md).

👉 [Token Economy](/token-economy/tokens.md) · [Dual-Token System](/token-economy/dual-token.md)
{% endtab %}

{% tab title="Financial Model" %}

### How It's Funded

#### Revenue Streams

| Source                                                        | Use                                                    |
| ------------------------------------------------------------- | ------------------------------------------------------ |
| [Residential rent](/equity-and-membership/rent-payments.md)   | Operations + member [equity](/token-economy/eqtblt.md) |
| [DAO business](/developers/contracts/dao-business.md) revenue | Operations and growth                                  |
| [Investment capital](/investors/invest.md)                    | Property acquisition                                   |
| [Treasury](/governance/treasury.md) appreciation              | Project funding                                        |

#### [Treasury Management](/governance/treasury.md)

* **Transparent** — All transactions on-chain via [Treasury contract](/developers/contracts/treasury.md)
* **Governed** — [Member-controlled spending](/governance/proposals.md)
* **Protected** — [Safety rails](/governance/safety-rails.md) prevent rapid drainage

#### The Cycle

1. [Investment](/investors/invest.md) enables property acquisition
2. [Members](/membership/membership.md) build and improve properties at [Foundries](/the-foundry/foundry.md)
3. [Rent](/equity-and-membership/rent-payments.md) and [business revenue](/developers/contracts/dao-business.md) generate income
4. Revenue funds more development
5. Members earn [equity](/token-economy/eqtblt.md) at every step
6. Repeat

The goal: self-sustaining growth where community benefit and financial sustainability reinforce each other.

👉 [Treasury](/governance/treasury.md) · [Investment Options](/investors/invest.md)
{% endtab %}
{% endtabs %}

***

## Getting Started

| Step | Action                                                                                                                                                        |
| ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| 1    | Complete [onboarding](/onboarding/onboarding.md)                                                                                                              |
| 2    | Set up your [wallet](/guides/wallet-setup.md)                                                                                                                 |
| 3    | Choose your path: [contribute](/quick-start/quick-start-builder.md), [live](/onboarding/member-housing.md), or [invest](/quick-start/quick-start-investor.md) |
| 4    | Start participating and building stake                                                                                                                        |

***

{% content-ref url="/pages/S2jVGkVrgHonprR3uwiR" %}
[The Thesis](/getting-started/thesis.md)
{% endcontent-ref %}

{% content-ref url="/pages/0JPWvKB9gRgOVtbduPp0" %}
[Member Onboarding](/onboarding/onboarding.md)
{% endcontent-ref %}

{% content-ref url="/pages/6hlRgEVSNtJTgWnUOpqT" %}
[Overview](/token-economy/tokens.md)
{% endcontent-ref %}

{% content-ref url="/pages/SS8wIERv7K8t3TYmBbhQ" %}
[Overview](/governance/governance.md)
{% endcontent-ref %}

{% content-ref url="/pages/2CpsPXS2onSy2cA8plzX" %}
[Overview](/membership/membership.md)
{% endcontent-ref %}

{% content-ref url="/pages/K4LGhhlSHD4Pg68pR1BE" %}
[Overview](/the-foundry/foundry.md)
{% endcontent-ref %}

{% content-ref url="/pages/OiWYwch32aM3GCGK7BHh" %}
[Overview](/equity-and-membership/equity-leases.md)
{% endcontent-ref %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.builtbydao.com/getting-started/how-it-works.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
