2022-04-01

What can we do with a DAO that cannot be done with other organizational forms?

Johannes Ernst

https://reb00ted.org/tech/20220401-what-can-a-dao-do-that-is-new/

Decentralized Autonomous Organizations (DAOs) are something new enabled by crypto and blockchain technologies. We are only at the beginning of understanding what they can do and what not.

So I asked my social network: “What can we do with a DAO that cannot be done with other organizational forms?”

Here is a selected set of responses, mostly from this Twitter thread and this Facebook thread. They are both public, so I’m attributing:

  • Kurt Laitner: “They enable dynamic equity and dynamic governance”

  • Vittorio Bertocci: “Be robbed without any form of recourse, appeal or protection? 😛 I kid, I kid 🙂”

  • Dan Lyke: “…they create a gameable system that has less recourse to the law than a traditional system … [but] the immutable public ledger of all transactions may provide a better audit trail”

  • David Mason: “Lock yourself into a bad place without human sensibility to bail you out.”

  • Adam Lake: “We already have cooperatives, what is the value add?”

  • Phill Hallam-Baker: “Rob people who don’t understand that the person who creates them controls them absolutely.”

  • Jean Russell: “Act like you have a bank account as a group regardless of the jurisdictions of the members.”

  • David Berlind: “For now (things are changing), a DAO can fill a gap in international business law.”

Follow the links above, there are more details in the discussions.

I conclude: there is no consensus whatsoever :-) That may be because there such a large range of setups under that term today.