scatterbrained
@scatterbrained
What are DAOs good for anyway? At Utopia Labs, we spend a lot of time thinking about DAOs and the tradeoffs they make against traditional org frameworks. This "human coordination compass" is one way we're thinking about things. 🧵👇 https://i.imgur.com/BuS8vkn.png
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scatterbrained
@scatterbrained
Throughout history, humans have centralized decision-making into the hands of a few individuals. Most governments, corporations, and non-profits are examples of this, and belong somewhere in the top-left quadrant of our compass.
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scatterbrained
@scatterbrained
Centralizing power to a board of directors (or trustees or parliament or congress etc) enables organizations to move much more quickly and effectively toward their mission. The tradeoff, of course, is that centralization also enables waste, fraud, and abuse.
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scatterbrained
@scatterbrained
Smart contracts and blockchain-based governance have enabled entirely new mechanisms for decentralized coordination that dramatically reduces (and even eliminates) the potential for waste, fraud, and abuse. Right now, DAOs trade effectiveness for decentralization.
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scatterbrained
@scatterbrained
It becomes clear when we plot these org structures on our compass that the holy grail of human coordination lives in the upper-right quadrant. https://i.imgur.com/zX09biR.png
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