iamhandsome: DAOSTACK

Hello, all,

What is a daostack?

DAOstack is an operating system for new organizational forms:
DAO. Decentralized Autonomous Organizations have captured the imaginations of the best thinkers in block chains, but despite their promise, they are still abstract ideas. The main point of failure is the lack of a solid framework for decentralized block chain governance. At the base of the DAO pile, Arc is an open and universal universal contracting framework for decentralized governance and collective value management on blockchain. Just as HTTP enables the creation and interoperability of web sites and web applications, DAOstack enables the creation and interoperability of enterprise web, DAO collaboration and applications, as well as alignment of their interests. The result is a new open collaborative network, where collectives can set themselves around common goals and values, beyond pure economic growth. We believe that this will be an important step in the evolution of society towards a more cooperative and sustainable future.

The future of the organization.

The ability to organize and coordinate well a large number of people is one of the main forces (and the driving force) of society, which has evolved continuously for thousands of years. In this chapter we describe the organizational challenges inherited today, and the possible form of new web organization: DAO.

Inherited organization.

Agency cooperation increases their efficiency with respect to the competitive power of the external market. This is the basic origin of the company and the reason why the organization wants to grow. However, coordinating a large number of agents is difficult and expensive, and that is why organizations can not grow indefinitely.

As they grow, organizations need more rigid structures and, therefore, face growing challenges to: a) maintain agility in relation to rapidly changing conditions; and b) maintain alignment of interests, trust and commitment among their members. In short, the larger the organization, the more internal friction it needs to overcome; the smaller it is, the more external competition. The true size of a company is usually a point of balance between these two forces.

Over time, the introduction of new technologies or paradigm shifts allows for coordinated cost reduction, scale and efficiency of the organization to a new level. It releases the transition in the landscape of work and business, and then also social change, just as it is with the discovery of crowdsourcing and the Internet itself.

The Internet allows open, real-time and peer-to-peer exchange of information on a global scale. Thus, the internet media becomes more measurable more efficient than traditional media, and has quickly assimilated with the latter. However, the Internet itself is not compatible with open and equal value exchanges and general purpose coordination, and therefore has limited potential to enhance global cooperation.

The Blockchain.

Blockchain is the second Internet revolution that makes the value and business what the Internet has done for information and media. Allows an unprecedented level of coordination of the crowd by completely eliminating.

problems of guilt and trust, and consequently are the basis of technology for Decentralized Autonomous Organizations (DAO). DAO is a new form of self-scaled and organized cooperation, operated by smart contracts within the chain of blocks. Many believe that DAO holds promise for the future of business and employment, but despite the great appeal within the blockchain community surrounding this issue, there is still a shortage of successful governance systems and operational bases for DAO. .

Agency.

The basic components of DAO are companies or smart institutions (we will use those terms interchangeably). An agency is an atomic governance unit that manages and operates a smart blockchain contract. It has its own tokens (related to the benefits of company resources), its own reputation system (with regard to credibility and influence on corporate issues) and its own governance system ("laws" codified in smart contracts).

The governance protocol incorporated in the intelligent contract of an agency can be anything that comes to mind. A simple example is a government system based on a proposal, with a yes / no majority vote on the proposal required for

approval and execution (which is an act in the smart company). Proposals can be about the distribution of tokens, for example, and votes can be weighted by voter reputation. We will provide some other examples in the next chapter. In the heuristic visualization it can look like this: