Ethereum’s tools: in-depth analysis of the DAO organization

Dear Bankless community,

The future of mankind depends on our ability to coordinate.

If you are a long-term reader, you know the efforts of the crypto community to kill the evil Moloch and get rid of its harmful coordination failure.

Association as is encrypted field exists because.

This is why we are so optimistic about the Decentralized Autonomous Organization (DAO). We believe that they are important tools in a new set of cryptocurrency economic elements that will change the way humans coordinate capital and resources.

Your child will work for DAO one day.

But we are only starting now.

We are still trying to grasp the basic principles of DAO-who is in it, where they come from, how people get compensated, why someone is interested in working for DAO in the first place…

These are the questions raised by Gitcoin DAO and Bankless DAO in answer to their iconic report on DAO. More than 400 DAO members participated in this creation.

If you want to understand the future of work, the future of capital coordination, and the future of human organizations in the digital age, you must read this report.

DAO is a new frontier.


DAOS: A new frontier for coordination

Humans compete for resources, but we have to survive the Association for .

We coordinate schedules, finances, groceries, international trade-everything. We are interdependent creatures. We do not live in a vacuum, but rely on families, companies, institutions and markets to survive.

So, why do so many collaborations in the world fail? How can we solve them? Conversely-how can we accelerate collaboration? How can we better coordinate ourselves to achieve a better collaboration mechanism in the world?

I believe DAO stood Association for asking the forefront of space problems . Their permissionless, task-driven and community-run architecture represents functional improvements for future work.

DAO is still quite primitive. As always, we are still very early. However, even though DAO just barely learned to crawl, it already has a team of life and activities. GitcoinDAO and BanklessDAO jointly compiled a comprehensive report that refined the insights of more than 400 DAO creators.

We are proud to introduce the first DAO (New Area of ​​Coordination) report.

Ethereum is the foundation for creating more collaboration.

I really believe that the impact of Ethereum on the world will be significantly better collaboration.

For the first time, we have a clear, immutable, programmable, you can create a new institution based bottom. Even if their founders are corrupted, these institutions will not be destroyed.

In other words, we can now invent a new mechanism on an unprecedentedly solid and inviolable basis and use it to fundamentally change the way in which resource allocation is coordinated.

Improved collaboration means better resource allocation, less corruption, and more symmetry between the value created and the value acquired. 

This is not good for intermediaries and good for everyone else.

Once we solve the coordination problem of Ethereum, we can export what we have learned and create a better collaboration mechanism in the mainstream field.

Ethereum's tools: in-depth analysis of the DAO organization

Emerging DAO coordination space

So, how do we solve the coordination problem in the ETH ecosystem?

We only need DAO. DAO is the basic building block of this problem space. 

Each DAO has its own structure, but they usually have:

  1. A task
  1. A vault
  1. Management of the vault
  1. Coordinate the work and transform the funds into results consistent with the task.

Let’s start to build a mental model and see what a world with many DAOs looks like.

Ethereum's tools: in-depth analysis of the DAO organization

As the number of DAOs and creators working for DAOs increases, the space to provide them with resource allocation/coordination tools will grow exponentially (creators^2)(daos^2).

Ethereum's tools: in-depth analysis of the DAO organization

It seems that if these trends continue, the company started to swallow if DAO and / or become their own important institution, then the DAO Association as may be able to become a trillion-dollar market within five years . (Not financial advice, please do your own research and so on-remember, this is just a hypothesis!)

We are now entering a world, and in order to achieve their mission, DAO will need to attract creators to join their cause, participate in them deeply, and coordinate them in a mutually beneficial way.

In order to be successful, the designers of the DAO must design their incentives and plan their culture so that participants do not just act on what is good for me now. In order to prosper, the DAO’s Nash balance must be between the following two:

  1. Things that are in my favor now.
  1. The future is good for me.
  1. It is good for us now.
  1. The future is good for us.

Ethereum's tools: in-depth analysis of the DAO organization

The “Bento Box” of this incentive mechanism is the foundation of the DAO incentive system.

Collaboration between DAOs and collaboration within DAOs

So far, we have been talking about DAO/participant collaboration, for a reason-there are thousands of DAO workers and creators out there.

But there is still a design space that is worth exploring at a higher level of abstraction. DAO to DAO collaboration!

Ethereum's tools: in-depth analysis of the DAO organization

When evaluating what this design space would look like, I began to consider the following questions.

For each DAO to DAO collaboration, what problems have been resolved through coordination? What positive sum game is enabled?

Here are some early thoughts on problem/solution combinations that can be explored.

  1. Different types of creators? Culture/creator interchange
  1. Different market segments? Financial diversification
  1. Different skills/views? Anti-fragile governance

We have seen the collaboration between DAOs very early, and I am looking forward to seeing the evolution of multicellular organisms. Each of these design spaces may be worth their own posting.

Ethereum's tools: in-depth analysis of the DAO organization

With the rapid expansion of space, there are many opportunities for collaboration between DAOs and collaborations within DAOs

Ethereum's tools: in-depth analysis of the DAO organization

What is the status of DAO collaboration?

As of August 2021, there are now thousands of people working for the DAO. This is an uncharted territory, and GitcoinDAO + BanklessDAO have joined forces and started drawing it.

I am very happy to cooperate with BanklessDAO/GitcoinDAO to study the collaborative space of DAO. Together we identified hundreds of creators of DAO work. The survey’s 422 respondents came from 223 DAOs in 290 cities around the world. We also surveyed the founders of the top DAOs in the field to help gather their understanding of the immortal rise of DAOs.

We compile this information into a comprehensive report, which we call the DAO (New Coordination Frontier) report. 

Ideally, this information helps us understand the new frontier of DAO as the ultimate coordination tool. Here is what we learned:

8 points of harvest

  1. DAO creators are a global group, although the vast majority of the 422 interviewees live in China and the United States.
  1. DAO is very easy to set up, with more than 200 representatives. This is in stark contrast to companies that require company articles of incorporation, legal expertise, and approvals.
  1. Among the 223 DAOs surveyed, BanklessDAO, GitcoinDAO, Index Coop, DAOSquare and dOrg account for a large proportion.
  1. DAO is diversified among NFTs, society, investment, agreements, services and grants.
  1. Most of the respondents were between 20-40 years old, and 80% were men.
  1. Most of the survey subjects are in 1 or 2 DAOs, but for a few people in 3-6 DAOs, it feels like being pulled in many directions is a real problem.
  1. Participants have a sense of accomplishment, meaning and purpose that cannot be found in traditional organizations. Ownership fuels empowerment. Being able to stand at the forefront of technology and culture is also an attraction to some people.
  1. In the world of DAO, there are still many things to be invented/discovered. Compliance, coordination, benefits, recruitment + retention of talents, and income fluctuations are all unresolved big issues.

Let’s DAO together.


Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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