Gitcoin founder: After studying the insights of more than 400 DAO creators, I found the mystery of coordination

We can now invent new mechanisms on an unprecedented solid and clean foundation, and use this to fundamentally change the way in which resource allocation is coordinated.

Humans compete for resources, but we also coordinate for survival.

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

So why are there so many coordination failures in the world? How do we solve them? How to speed up coordination? How to coordinate yourself better to inspire better coordination mechanisms in the world?

I believe that DAOs are at the forefront of the coordination problem space. Their permissionless, task-driven, and community-operated architecture represents functional improvements for future work.

DAO is still very primitive, and as usual, we are still in the early stages. Although DAO only barely learned to crawl, it has begun to get involved in people’s lives and activities. GitcoinDAO and BanklessDAO worked together to compile a DAO (New Coordination Frontier) comprehensive report, which refined the insights of more than 400 DAO creators.

Ethereum is the foundation for creating more coordination

I really believe that what Ethereum will bring to the world will be better coordination.

For the first time in history, we have a transparent, immutable, and programmable foundation on which people can build new institutions, and such institutions will not be too much influenced by the founder.

In other words, we can now invent new mechanisms on an unprecedented solid and clean foundation, and use this to fundamentally change the way in which resource allocation is coordinated.

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

This is not good for the middleman, but it is good for everyone else.

Once we solve the coordination problem of Ethereum, we can export the knowledge we have learned to the mainstream to create better coordination.

Gitcoin founder: After studying the insights of more than 400 DAO creators, I found the mystery of coordination

Emerging areas of DAO coordination

So how do we solve the coordination problem in the ETH ecosystem? We are using DAO, which is the basic building block of this problem space.

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

  1. A task
  2. A financial library;
  3. Regarding the governance of this fiscal pool;
  4. Coordinate the transformation of the financial library into results consistent with the mission;

Let’s start to build a mental model for a world with many DAOs.

Gitcoin founder: After studying the insights of more than 400 DAO creators, I found the mystery of coordination

As the number of DAOs and creators working for DAOs grows, the space for their resource allocation/coordination tools will grow exponentially (creator^2) (dao^2).

Gitcoin founder: After studying the insights of more than 400 DAO creators, I found the mystery of coordination

It seems that if these trends continue, if the DAO starts to merge the company or become its own important institution, DAO coordination may become a trillion-dollar market within 5 years. (This is not financial advice, you have to do your own research, remember, this is just a hypothesis)

We are now entering a world in which, in order for DAOs to achieve their mission, they need to attract creators to join, participate deeply in their activities, and coordinate them in a mutually beneficial way.

In order to be successful, DAO designers must design their incentives and culture so that participants do not only act in ways that are beneficial to them. To develop and grow, DAO’s Nash equilibrium must be between:

  1. What good is it for me now;
  2. What will be good for me in the future;
  3. What good is it for us now;
  4. What is the future for us;

Gitcoin founder: After studying the insights of more than 400 DAO creators, I found the mystery of coordination

This “Bento Box” incentive is the foundation of the DAO incentive system

Inter-DAO coordination vs. DAO internal coordination

Up to now, we have been talking about DAO/participant coordination, and there are good reasons to believe that there are thousands of DAO workers and creators in the world.

But there is another design space worth exploring, and that is the coordination between DAO and DAO!

Gitcoin founder: After studying the insights of more than 400 DAO creators, I found the mystery of coordination

When evaluating what this design space would look like, I began to consider:

For each DAO and DAO collaboration, what problems have we solved through coordination? What is the positive sum game enabled?

Here are some early thoughts on exploreable problem/solution combinations.

  1. Different types of creators? Culture/creator interchange;
  2. Different market segments? Diversified financial pools;
  3. Different skills/views? Anti-fragile governance;

Regarding what the coordination between DAO and DAO looks like, we are still in the early stages of exploration. Each of these design spaces may be worthy of their own blog posts.

Gitcoin founder: After studying the insights of more than 400 DAO creators, I found the mystery of coordination

As the space expands exponentially, there are many inter-DAO coordination opportunities and intra-DAO coordination opportunities!

Gitcoin founder: After studying the insights of more than 400 DAO creators, I found the mystery of coordination

The status of DAO coordination

As of August 2021, thousands of people around the world are working for DAO, which is uncharted territory.

I am very happy to work with BanklessDAO/GitcoinDAO to research the DAO coordination space. We have jointly 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 top DAOs in this field to help them understand DAO’s work. Rise.

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 field of DAO as the ultimate coordination tool.

Here are 8 key points we learned:

1. The creators of DAO are a global group, although most of the 422 people surveyed live in China and the United States.

2. According to more than 200 DAO representatives, DAO is very easy to start, which is in contrast to companies that require company articles of association, legal expertise, and approval.

3. Among the 223 DAOs surveyed, Banklesdao, Gitcondao, Index Coop, DAOSquare and dOrg are very representative;

Gitcoin founder: After studying the insights of more than 400 DAO creators, I found the mystery of coordination

4. DAO shows diversification among NFT, social, investment, agreements, services and grants;

5. Most of the interviewees are between 20-40 years old, and 80% are men;

6. Most of the interviewees are in 1 or 2 DAO organizations, and for a few people in 3-6 DAOs, it feels like being pulled in multiple directions is a real problem;

7. Participants have a sense of accomplishment, meaning and goals that cannot be found in traditional organizations. In addition to the impact of ownership, being able to stand at the forefront of technology and culture is also an attraction for some people.

8. In the world of DAO, there are still many things to be invented/discovered. Compliance, coordination, benefits, recruitment + retention of talents, income fluctuations, etc. are all major unresolved issues.

Let’s DAO together.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/gitcoin-founder-after-studying-the-insights-of-more-than-400-dao-creators-i-found-the-mystery-of-coordination/
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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