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I feel that the concept of DAOs offers much more than what the author present. If I understand it correctly, DAOs offer a programmatic way to organize the decis

I feel that the concept of DAOs offers much more than what the author present. If I understand it correctly, DAOs offer a programmatic way to organize the decision making and wealth sharing between the participants. Compared to the traditional way (contracts+lawyers+notar), it becomes much cheaper and faster to make decision, distribute and re-distribute wealth and ownership. Basically, DAOs have the potential to remove friction in all what is organizational for a startup. This opens new possibilities for wealth sharing and decision making processes in the organization.

deleted 5y ago
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resiros 5y ago
Some ideas about what DAOs could allow. The developer guild: A group of peoples (devs, ux, business dev) meet online and form a temporary DAO and start taking contracts. The DAO would give the participants 1) a programmatic way to divide the money they make 2) vote on directions to take (hire/fire decision, take/fire clients, pay of each participant given the contribution..) The startup: Two co-founders decide to build a b2b saas in some vertical. They build a DAO. Start taking investor money which comes with voting rights about certain issues (hire/fire CEOs, hire/fire C- level execs, equity). Similarly, they start hiring founding engineers which a certain voting power in the DAO around certain issues (should we optimize for growth or get dividends, should we fire the C-levels..), which also get to choose whether to trade equity for salary. The level of democracy in each startup would be different. Some would give employees some voting rights about big decision, some only about wealth distribution.. The DAO in the second example would allow 1) new ways of governance inside the organization (compared to the board->CEO->organization) 2) new ways of wealth and risk sharing inside the organization (probably benefiting employees) 3) a friction-less lawyer-less way of doing both of these. I don't know if all of this makes sense, I am thinking out loud here, and I honestly doesn't know much about DAOs.
- rmah 5y ago
  The key question is this: how are votes enforced when they impact non-blockchain related actions? That is, Who pays the taxes on the people that get hired? How is non-blockchain income distributed? Who do you sue if a vote violates a labor law? How does the DAO purchase or pay for services from non-blockchain entities? If a DAO token is "equity" then it will fall under security regulations of various nations. In addition, it cannot be equity unless the DAO is also a registered company in some jurisdiction.
- M2Ys4U 5y ago
  Nothing, literally nothing, you described there needs a DAO to happen. In fact replace the string "DAO" with "corporation" and everything still makes perfect sense - because what you are describing is a common-or-garden corporation.

deleted 5y ago

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resiros 5y ago

Some ideas about what DAOs could allow. The developer guild: A group of peoples (devs, ux, business dev) meet online and form a temporary DAO and start taking contracts. The DAO would give the participants 1) a programmatic way to divide the money they make 2) vote on directions to take (hire/fire decision, take/fire clients, pay of each participant given the contribution..) The startup: Two co-founders decide to build a b2b saas in some vertical. They build a DAO. Start taking investor money which comes with voting rights about certain issues (hire/fire CEOs, hire/fire C- level execs, equity). Similarly, they start hiring founding engineers which a certain voting power in the DAO around certain issues (should we optimize for growth or get dividends, should we fire the C-levels..), which also get to choose whether to trade equity for salary. The level of democracy in each startup would be different. Some would give employees some voting rights about big decision, some only about wealth distribution.. The DAO in the second example would allow 1) new ways of governance inside the organization (compared to the board->CEO->organization) 2) new ways of wealth and risk sharing inside the organization (probably benefiting employees) 3) a friction-less lawyer-less way of doing both of these. I don't know if all of this makes sense, I am thinking out loud here, and I honestly doesn't know much about DAOs.

rmah 5y ago
The key question is this: how are votes enforced when they impact non-blockchain related actions? That is, Who pays the taxes on the people that get hired? How is non-blockchain income distributed? Who do you sue if a vote violates a labor law? How does the DAO purchase or pay for services from non-blockchain entities? If a DAO token is "equity" then it will fall under security regulations of various nations. In addition, it cannot be equity unless the DAO is also a registered company in some jurisdiction.
M2Ys4U 5y ago
Nothing, literally nothing, you described there needs a DAO to happen. In fact replace the string "DAO" with "corporation" and everything still makes perfect sense - because what you are describing is a common-or-garden corporation.