Common DAO pain points and discussion Qs


“Experiences from the open source world show that the main paintpoints of decentralized organizing are not automizable, but need to be talked through with groups of humans”

DAOs do not use technology to magically automate away paint points. I agree open source governance requires groups of people to work through the problems. DAOs create ecosystems that allow this activity to flourish.

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“DAOs are very distant from the on the ground problems that people face”

Pick any on the ground problem that people face and it can be traced back to lack of resources caused by the grow or die mentality of capitalism. We are losing the rich/poor gap equation. Redistribution of wealth and power to better serve the masses is a complex problem. To address on the ground problems think in terms of taking two steps back in able to take one step forward… see the true problem and search for solutions to that problem.

“The banking institutions of today were enormously liberating institutions for the vast majority of 18th, 19th, and 20th century. Before the introduction of retail banking in the 15th or 16th century the only people who had access to banking were princes and kings. The only person who could write a cheque, drawn on the treasury, was a king. Early retail banks were started by the merchant class who were persecuted for making banking available to the masses. These institutions gave freedom to billions of people. By empowering them to join in corporations, associations, to manage their money, to have free commerce, to be able to save.

At some point however, because their scaling in a hierarchical model in the form of a pyramid structure the industrial model of bureaucratic organization where you have layers upon layers in order to scale an organization, that scale collapses at some point. At some point the distance between the decision-makers at the top of the pyramid and the people affected by those decisions at the bottom becomes too great, the responsibility too diluted, and the organization fails to make good decisions. It’s an architectural problem.

The way it is solved is by decentralized flat architectures that are enabled by software where governance is done on a network rather than through a bureaucracy. Bureaucracies were a great invention of the 18th century, banking is a great invention of the 16th century, these inventions raised billions out of poverty. But now they have failed to scale. And now we need new institutions to save the 21st century without destroying our planet.” - Andreas Antonopoulos



“The idea of paying to play needs more questioning”

This is a widely misunderstood generalization made by people who do not understand cryptocurrencies. Blockchain tech is a revolution in trust. Blockchains allow unknown actors to work in their own best interest while still benefiting others. Cryptographically secured tokens of value power the incentive model which secures a robust network allowing these interactions to take place. Throwing out the incentive model (pay to play) is like throwing out the baby with the bathwater.

I can kind of understand why a blockchain noob would be worried about profit motives in a blockchain ecosystem might be bad, because all they know in the real world is that profit motives lead to the problems they are trying to solve. The revolution in blockchain is that it uses profit motives in positive ways.

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“Panelists had the impression that many in this space are starting from a solution first, not from a problem.”

I hate this the most because DAOs are starting with the biggest problem. The root problem leads to numerous small problems. The root problem is largely hidden, difficult to understand, and almost impossible to address. The panelists are used to looking at the many small problems fighting an uphill battle without ever addressing the root problem. It’s like having an allergic reaction causing a rash and covering up each outbreak without ever trying to figure out and fix what is causing the rash in the first place. DAOs are the only hope at addressing the real problem.

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“In the context of the current global problems the world is facing, DAOs may be a distraction more than a solution.”

I believe this person has it 100% backwards. The entire human history of altruism, goodwill, and charity has done little to slow the tide of social ills and ecological destruction caused by non-stop rampant consumerism. It’s more true to call environmentalism and charity a distraction that hides the real problem. Corporations are not operating on a level playing field and there is no current functioning solution to fix the draining of wealth (helpful resources) from the masses. The sad reality about charities is they are a suckers game for addressing tragedy of the commons. The future of cryptocurrencies, blockchain tech, and DAOs are the only viable solution.

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