Infrastructure for DAOs and economic evolution of cooperative models with DAOstack

Q.) In our community Telegram it was asked by @eeeit: "Do you provide an incentive structure that would promote cooperation, or just the infrastructure for creating DAO’s? In other words are there incentive rules or norms built into the system, or do I still have to make them for myself and find the right people to work with? To put it simply, where’s the magic?"

A.) Answered by @Matan [DAOstack Architect]:

That short answer: Yes and Yes.

At the basic, infrastructural level (the DAO stack: Arc + ArcHives + Arc.js) we provide the infrastructure/tools to create a DAO — DIY DAO.

On a next level,

since it’s an open platform, these rules can (and will) be enriched by anyone, which means more and more rules will comes up; the better rules will lead to better organizations; which then will go under economic evolution of protocols, which will end with the best rules. Just like species. Why cooperative / anti-rival rules are the best? because those organizations that will induce the best cooperation will have the most effective and scalable outcome which will outperform others.

However, we’re also putting up certain specific protocols - the initial conditions for this economic evolution.

And these specific protocols are indeed aimed carefully to trigger cooperation. At scale. And I write it in two sentences since it’s made of two concepts.

The first is the anti-rival economy. If you cooperate, if you play well, you are compensated. When a developing team of an library decide to open-source their code, to make it well documented, perhaps making it modular and reusable in a wide array of contexts, and even integrating it with existing tools (say, the stack), then the Genesis DAO will reward them with some GEN tokens. The more such tools avaialbe in the DAOstack ecosytem the more cooperation is easy, the more everyone gain.

In a more general level, one of the primary purposes of the collective decision-making system is to reward good act with respect to each DAO’s value system, and thus reward (and incentivize) cooperation. Note the difference between budgetting a task/mission pre-executing it, and rewarding good actions post-execution. With Alchemy you can do both, and it’ll be integrated with more and more interesting ways to do so (already in our minds, some in process, most basic ones implemented so far).

Second concept is holographic consesus (see more about this up the thread; perhaps @patdaostack can find it), that allows this kind of cooperation to happen at scale. Meaning, perhaps many thousands of decisions about cooperative value-bringing actions in a short period of time (that’s the purpose of the DAO).

So that’s where the whole magic is:

  • the ability to set up the ingredients for economic evolution of coopertive models

  • the setting for an anti-rival economy

  • the setting for doing that at scale