#business #business #blockchain #web3 # [[Epistemic status]] #shower-thought # Related - [[Principal agent problem]] - [[Web3 is Marx utopia]] - [[a16z Podcast - Culture as Code|Culture as Code]] # Decentralized Autonomous Organization >A company that could pay all its employees so straightforwardly would be enormously successful. Many employees would work harder if they could get paid for it. More importantly, such a company would attract people who wanted to work especially hard. It would crush its competitors. >~ [[Paul Graham]] **Decentralized Autonomous Organization** have the potential to reward workers proportionally the value created, so everyone work harder and the organization moves faster. In the past it was impossible to measure automatically a human work, now we have computers, AI and [[Cryptocurrency|cryptocurrencies]]. ![[Pasted image 20220310144937.png]] [^1] ![[Pasted image 20220310145345.png]] [^2] Basically it’s like a centralised organisation but all the human processes of financial terms are instead automated (using [[Blockchain]]). It’s possible that more faces of the organisation are automated. After all, is there anything a human do, that a machine can’t ? >For decades the [Principal-agent problem](https://en.wikipedia.org/wiki/Principal%E2%80%93agent_problem) has been one of the biggest problems with traditional organizations. This problem occurs when an individual or entity makes decisions in their interest against moral principles, and these decisions affect the other stakeholders. For example, when an individual or entity has significant shares amongst the board, they become automatically more powerful than other members. Digital currencies are decentralized and cannot be controlled by a single entity; inspired by this emerged the concept of DAO, which stands for Decentralized Autonomous Organization, an organization governed by a set of rules written in smart contracts. This organization is controlled by its participating members. hierarchical #cooperation -> flattened cooperation ## [[Equity should reflect effort and effort should reflect equity]] I.e. dao kind of enable rewards according to effort * value # External - https://www.reddit.com/r/DAOdev/ - https://gitcoin.co/ - [Comparison of DAO platforms, Aragon far ahead ?](https://jisajournal.springeropen.com/articles/10.1186/s13174-021-00139-6) - https://openlaw.io - https://www.reddit.com/r/DAOdev/ - https://twitter.com/OrangeDAOxyz [^1]: https://twitter.com/winnielaux_/status/1494102281683357701/photo/1 [^2]: https://www.reddit.com/r/DAOdev/comments/r6j9vo/dao_tooling_landscape/