Please describe your proposed solution.
The Problem:
The currently accepted concept of a DAO doesn't reach the highest potential for what the acronym "DAO" could potentially stand for:
- Decentralized. Currently this just means that DAOs lack a centralized entity that controls funds, but it doesn't take into account the fact that the treasury of the DAO is a central single point-of-failure, even if it's managed on a decentralized network… a bottleneck that prevents them from scaling as truly distributed systems. This is not just a problem for maintaining resilience against failures or attacks, but it also plays into the reasons why DAOs can be in danger being subject to government regulations. Ideally, true decentralization would make DAOs look a lot like a bunch of sole proprietors working concurrently in common domains.
- Autonomous. Currently this just means that DAOs lack a centralized entity controlling funds, but all monetary decisions are subject to majority opinion (democracy) or the opinion of the group with the largest token holdings (plutocracy). If the pursuits of the individual are subservient to the whims of the mob or the whales, who in this scenario is autonomous? Another way of viewing autonomy is whether or not the system can operate without oversight. The system needs the capacity to remain safe to interact with and able to change over time, but does that mean the token issuers / DAO creators are the ones with autonomy?
- Organization. Currently this just means that people subject themselves to whichever governing authority has control over the system. Any experiments that deviate from the majority of voting power might not be considered. It is true that minority perspectives can sometimes cause damage to organizations, but risks could be localized and only extended to greater parts of the community once they are proven to work on smaller scales. You want to organize so that one person's autonomy can't easily violate another person's autonomy, while avoiding the need for a centralized entity or treasury that accumulates and controls funds.
My Approach:
Lots of relevant information exists in different fields of research that could help us build better DAOs. This proposal focuses on collecting some of that research into a technical report that could hopefully shed light on some important questions:
- How can DAOs maximize the number of concurrent experiments within an ecosystem without falling apart financially?
- How can we structure DAOs that are truly worthy of being called DAOs?
- Can we maximize the benefit to people who are actually working on solving problems and not just token prospectors?
Community Engagement:
This research will be free and open source for anyone interested in using it. Part of the process of refining my report on this topic will involve presenting my work in some after-townhall meetings. I will be open to opportunities for further collaboration after the completion of this project as well.
Demonstrating Impact:
This is about research and analysis. The impact will be in how people use this work, as well as how it shapes peoples understanding of what DAOs have the potential to become.
How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?
The main way that this project applies to the challenge is by providing insight for the creation of additional not yet existing tools that give Cardano a distinct advantage and improvement of DAO governance.
This is a research project, so the benefit is in shaping people's perspectives in ways that could lead to improved tools and decentralized governance mechanisms.
Exploring the properties of distributed systems from both computer science as well as biology could lead to a greater number of parallel experiments within a decentralized ecosystem. It will also be beneficial to look at how experiments could compose and interoperate with each other. It's important to make sure that we do our best to search the space of possible experiments so that we don't get stuck in a local optimum and miss even better solutions.
How do you intend to measure the success of your project?
This is research and documentation that could help people improve governance structures in Cardano to optimize the number of experiments within our ecosystem.
Indicators of Success:
- A detailed and useful technical report on alternative DAO structures.
- People using this research in their own project and deriving value from that.
- DAOs of the future structured to innovate better than other types of organizations.
Please describe your plans to share the outputs and results of your project?
What are your plans to spread the project’s outputs over a reasonable timescale?
- I plan on organizing my research and working on a first draft after proposals are submitted and finalized. (If you're voting on this proposal, check my progress here!)
- I'll probably lead some breakout rooms after town-hall meetings to discuss the paper and hopefully gain insight into what it might be missing.
- Since I've already put a lot of effort into related research, 6 months after voting and approval should be plenty of time to polish my results.
How and with whom will you share the outputs/impact and opportunities that will arise as a result of your completed project?
- Everything will be made available on the linked GitHub page.
- Everything related to this project will be open source under either the Apache-2.0 or CC-BY-SA-4.0 license depending on whether it's code or documentation.
- I plan to make myself available for further discussion and collaboration after completion.
How do you expect to use the results generated from the project in further research and development activities?
- Some of the broader applications of this work will be of direct benefit to my Dims (Distributed Idea Management System) project.
- It should also be compatible with my other research project: Unique Pseudonymous Identification of DReps through Joint Content Creation in the DRep improvement and onboarding challenge.
- Both this and my DRep research will eventually be considered in the context of my Distributed Idea Management System, Dims!