Kimball Musk and the revolution of decentralized philanthropy through Big Green DAO

Kimbal Musk has long proven that success in technology is not limited to a single field. His journey began in the 1990s with Zip2 — a city guide that was one of the first online versions of a directory. The triumph over physical publications was inevitable, and now, after three decades, he applies the same transformation principles to philanthropy through the innovative project Big Green DAO.

From the Internet to Voting: The Evolution of Kimbal Musk’s Vision

Musk’s story begins with skepticism. In the late 1990s, one critic literally threw a physical directory at him, demanding proof that the internet could displace the $10 billion print industry. Musk was stunned into silence but knew one thing: the industry was already dying.

This realization became key. When Musk suffered a serious ski accident in 2010 — landing on his head at 35 miles per hour — it redefined his priorities. During recovery, he heard a clear inner voice guiding him toward a new mission: working with children and introducing them to real food.

The result was the nonprofit organization Big Green, which created Learning Gardens classrooms in 650 schools nationwide, educating 350,000 children daily. However, when COVID-19 halted programs, Musk turned his attention to a new technology — decentralized autonomous organizations (DAOs). The idea was revolutionary: why not transfer the power of fund allocation directly to frontline nonprofit workers who best understand community needs?

Big Green DAO: A Governance Structure That Truly Works

In fall 2021, Kimbal Musk launched Big Green DAO, investing his own $1 million as initial capital. The mechanics were simple: six initially invited nonprofit organizations received $50,000 each, and then they voted on the allocation of subsequent funding rounds.

The results exceeded expectations. In the first quarter, $300,000 was donated to ten organizations, and soon the DAO expanded to 16 members. The most remarkable aspect was the nature of participation. Instead of large donors, the DAO attracted over 1,700 donors with an average donation of $900. The total funding volume reached $6.5 million.

Most donors voluntarily waived their voting rights, believing that nonprofit organizations know the situation better. To participate in voting, a minimum of one ETH is required, but even small donations grant access to the DAO’s Discord community. Each quarter, members meet in person — last quarter, they gathered in Atlanta for two days to discuss strategy and get acquainted.

The Effectiveness of Decentralization: Numbers Speak Louder Than Words

The difference between traditional philanthropy and DAO is striking when analyzing costs. A typical fund distributing $100 million annually spends $15 million on staff salaries responsible for reviewing applications. This leaves $85 million for nonprofits, which in turn spend 25% of their time on fundraising. As a result, at most 65% of funds go directly to on-the-ground work.

Big Green DAO is radically different. With overhead costs of only 5%, nonprofits receive 95% of the donated funds. The psychological effect is also significant: the emotional exhaustion from constant fundraising disappears. Instead, nonprofits discuss the possibility of securing funding simply by building relationships with other DAO members through personal meetings.

However, the onboarding process proved more complex than expected. Musk admits he spent 10,000 hours managing it. For people who have worked in the real world for years, creating wallets and understanding blockchain mechanics is a serious challenge. Nevertheless, once they realize the power they hold, enthusiasm becomes genuine.

Lessons in Governance and Power Distribution

Kimbal Musk is most proud of how Big Green DAO adheres to democratic principles. Studying the U.S. Constitution, his team developed a system that prevents concentration of power. Regardless of donation size, each participant has one vote. Musk himself chose not to vote, wanting decision-making to be focused on nonprofit organizations.

No DAO member can vote on their own funding. Instead, the six initial organizations vote on expanding the community, committing to distribute between 20% and 30% of the treasury each quarter to other organizations.

A critically important element is the ratified DAO Constitution, which prohibits any participant from accumulating excessive power. Musk emphasizes that many other DAOs do not live up to their name — when one voter holds seven million votes, and the rest of the community shares 5,000, it’s not true decentralization. Big Green DAO stays true to the spirit of decentralization, although it remains an experiment with an unpredictable outcome.

Where Decentralization Truly Changes the Game

Musk is cautious in applying DAOs. He would never manage Tesla as a DAO — supply chain management requires centralized decision-making. However, DAOs excel where decentralized solutions and accountability are needed.

Examples include reducing deforestation. Commercial and nonprofit organizations often pay local communities to preserve forests but never know if the conditions are met. DAO allows monitoring and decision-making to be distributed among local stakeholders, creating a system of mutual accountability.

Police reform is another area where DAO has shown potential. North Atlanta differs radically from South Atlanta, and each community has unique needs. Centralized reform is ineffective; decentralized voting allows each neighborhood to shape its own strategy.

Climate initiatives require deeper analysis. Climate change is a global problem, and Musk is skeptical about whether local decentralization can solve the worldwide crisis. However, his main conclusion is simple: every problem requires its own tool. Humanity has capitalism, communism, traditional philanthropy, and DAOs. Choosing the right tool determines success.

Summary: A New Model of Power in Philanthropy

Big Green DAO demonstrates that Kimbal Musk is ready to apply lessons from his past successes to modern challenges. When a critic in the 1990s threw a directory at him, he felt helpless. Now, by applying decentralization principles to charity, he is creating a system where people working on the ground truly control the outcomes.

This transformation signifies a fundamental shift: from philanthropy managed by centralized funds to a model where the community votes and makes decisions. Musk rightly notes that this has never been fully realized before. While doubts remain, Big Green DAO has already proven that decentralized distribution of power is not only possible but more effective, fair, and impactful.