cooperatives

One thing I find lacking in the cooperative economy is more effective funding mechanisms compared with the amount of funding opportunities and accelerators available to capitalist companies.

In many countries, traditional funding systems for coops are broken, and cooperatives often miss out on access to risk capital, which is also crucial to innovate and grow imo.

There have been experiments, like revenue-based financing and models from VCs such as Indie.vc (which no longer exists), that explored alternatives but non of these experiences, afaik, has gained widespread recognition and use yet.

I should probably write about it one day.

@vitalik.eth I know you’ve explored various social and economic experiments with Glen Weyl, so I wanted to ask your opinion:

Do you think blockchain technology could enable a more effective model to disrupt traditional cooperative funding (often quite boomer and stuck in outdated frameworks) and accelerate the cooperative economy?

Funding common good with donations and quadratic funding is cool, but I feel we’re missing an opportunity to build relevant and sustainable cooperative funding.

Related 👇

@vocdoni, prev. Bitcoin Magazine | Purple #203 | Cohost: /diy /anthropology /vote /biohacking /cooperatives

Blockchain Radical: How capitalism ruined crypto and how to fix it

https://linktr.ee/blockchainradicals

I love the idea and the new UI!

I had BREAD before the upgrade, but I should buy more again.

I have a couple of questions:

1. What about splitting the yield to something like 80% to distribute and 20% back to the sDAI pool? In this way it can grow constantly while also be more resistant to USD inflation.

2. Does BREAD have any governance besides the votes to decide how to distribute the yield? For example, to decide on topics like the previous question.

🥖❤️

1) But if I understood well, the yield compounds until is distributed, right?

2) Makes a lot of sense, I know also some projects that are Foundations instead of co-ops for the same reason.

Nice, always nice to meet early supporters of BREAD :)

For 1) I'm not sure exactly how this would look since in reality all of the yield is in the sDAI pool. BREAD is a wrapped version of xDAI essentially so all the yield being generated is compounding on itself always.

2) Not at the moment. Atm we don't think that BREAD would be right way to give governance rights over these other things and instead practice more sociocratic governance practices with the project leads and main contributors especially at the size we are.