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I funded a small amount of it. DAOs (distributed Autonomous Organizations) could be better thought of in a corporate governance framework. A) Least distribute
by wtvanhest 5y ago
I funded a small amount of it.
DAOs (distributed Autonomous Organizations) could be better thought of in a corporate governance framework.
A) Least distributed corporate governance: Sole proprietorship who owns 100% of their business
Every other organization sits between least and most distributed
B) Most distributed corporate governance: Full democracy state controlled
DAOs are special because the voting mechanism lets people vote across boarders/jurisdictions etc from their computer... but it also relies on the creators giving the right level of control to the DAO voting. If they gave voters 100% control, someone could do a 51% attack and have it destroyed, or something else. But, if they don't give enough control it is effectively a rug pull.
ConstitutionDAO is an amazing initiative because it puts so many assumptions up for a test, and crosses crypto world to mainstream. Its revolutionary.
The 'power' struggle is real... and fully on display
- lifeformed 5y agoHow is any of it enforced? Are the daily operations of the organization encoded in contacts or something?
- meheleventyone 5y agoIf there is an undemocratic layer exercising overall control then the net result is authoritarian. It would be neither distributed nor autonomous. It’s precisely why democratic governance generally tries to balance power between elements that can exercise checks on one another and why eroding those checks is so worrying. Like if you’re trying to buy the constitution in a democratic fashion you’d think you’d at least try to understand what it means.
- javert 5y agoIt's not amazing. Like any company (a DAO is just a company), it could be run well, by good people, or run badly, by bad people. Whichever ways it turns out will not prove anything about DAOs.
- wtvanhest 5y agoA DAO is more like a specific corporate governance mechanism than a company. For example, ConstitutionDAO will be a non-profit, with a non-profit board etc. I presume they will put things up for vote using the DAO. If it is executed flawlessly it will prove DAOs as a viable corporate governance mechanism. If it fails or struggles, there will be learnings.
- rank0 5y agoExcept owners of the governance tokens have zero legal authority. Traditional shareholders have actual legal voting power. Nothing is stopping this group from ignoring governance token votes.
- javert 5y agoCorporate governance by voting has already been proven to be viable. That's how publicly traded companies work. A DAO is not special. It's just an unregulated international corporation.
- arcticbull 5y ago> For example, ConstitutionDAO will be a non-profit, with a non-profit board etc. Ok but you can just form a 501(c)(3) whenever you want right, which actually has some force of law over its activities. > I presume they will put things up for vote using the DAO. But... they don't have to. It's all fun and games until there's a disagreement over what to do. The way in which a meaningful disagreement is resolved is what will prove the viability of this model. When everyone's aligned already, it doesn't really prove much.
- nrmitchi 5y agoInteresting that "buying majority control" of an organization in crypto-land is now called "doing a 51% attack".
- arcticbull 5y ago> DAOs are special because the voting mechanism lets people vote across boarders/jurisdictions etc from their computer... but it also relies on the creators giving the right level of control to the DAO voting. Aren't these votes broadly speaking non-binding? Is this really any different than an LLC that runs a periodic twitter poll?