The promise that DAOs (Decentralized Autonomous Organizations) hold for the future of collaboration led the founders of DAOstack to create an innovative, flexible, open-source platform for decentralized governance.
*This DAOstack post is sponsored as part of our ICO Whitelists Insider series.
DAOs were created to avoid the middleman and ‘the boss’, as many believe that the people who lead large organisations often have conflicting interests with the majority of contributors within the organisations.
In a DAO, participants self-organize and vote over important decisions, using blockchain technology.
This is also where the DAOstack platform comes in. It enables DAO participants to not only vote on matters within the DAO according to reputation or subject-matter credibility, but also to help select which matters are worth voting for.
The founders of DAOstack recognized some of the biggest challenges posed by decentralized governance, including that organizations need to be both resilient to bad acting or bad judgement while also being efficient and scalable. With that in mind, they have created a comprehensive solution that offers innovative governance templates but also is fully upgradeable over time, like a sandbox for ongoing experimentation.
DAOstack architect and CEO Matan Field says: “The first principle of designing the DAO stack was not to build a specific protocol or a specific application, but rather to build the soil, the ground from which a whole ecosystem can grow and thrive.”
The platform is built on a base of smart contracts which helps to keep track of the votes, and helps carry out decisions that are collectively made.
These DAOs can be created in virtually any field and sector, and aims to help people organize toward a common goal, without the ‘man on top’ making the decisions for the vast majority of the people.
What is the solution DAOstack provides?
DAOstack has created a highly adaptable model which organizations can both experiment with and build on.
DAOstack CTO Adam Levi adds: “DAOstack is committed to a fully open architecture. The more eyes on the code, the better. That’s some of the best support we can have.”
Their technology is aimed to manage the collective attention of the people within the DAOs, and to help them find ways to determine who can make proposals, and how they can do it.
In other terms, it will encourage users to vote on what to vote for.
The stack is made up of components including Alchemy (an intuitive, native user interface), dApps (collaborative applications built on the stack), Arc.js (an API layer), the ArcHives (shared registries) and Arc (a library of smart contracts).
Who is it for?
DAOstack can help coordinate decision-making among large groups working to produce an outcome, such as how much to value the contributions of individuals, or whether to invest in infrastructure. For instance, it could suddenly be possible for 1,000 artists to collaborate in a decentralized manner on the same film project.
Another use case for DAOstack is in curation. Curation networks can leverage the wisdom of the crowd to essentially rank the quality of anything. Imagine a decentralized version of TripAdvisor or Yelp for restaurants and hotels.
A third use case revolves around shared ownership, and management of assets. Venture funds, insurance networks, and charitable funds are some examples that could be turned into decentralized autonomous organizations using DAOstack.
Who is behind DAOstack?
The team of 15 includes Field, who is a leading expert in decentralized governance, Levi, a deep blockchain technologist (both with PhD in physics) and Primavera de Filippi, a Harvard Law Fellow and permanent researcher at the National Center of Scientific Research (CNRS) in Paris. Roberto Klein in Legal and Finance, who is an investor and entrepreneur with focus on blockchain regulation, IPOs and corporate/startup financing.
They are joined by Yehonatan Goldman, who is described as ‘polymath and connoisseur of operations’, Roberto Klein in legal and finance, Nathalia Scherer in Biz Dev & Community, and Josh Zemel in Communications.
Their four advisors are Jordan Greenhall, Martin Köppelmann, Yoni Assia and Daniel Schmachtenberger.
What is the most exciting aspect of DAOstack?
Zemel believes that one of the most exciting aspects of the project is the Genesis DAO, which is the first DAO created using the DAOstack.
It aims to advance the DAOstack project and ecosystem, and will be responsible for the allocation of funds that will be generated through the token sale.
Another exciting aspect, according to Zemel in this recent blog post [[LINK to medium]], is that DAOstack is “designed to underpin not just individual organizations but an entire ecosystem of interoperable DAOs, able to share talent, ideas, and learnings. DAOs will even be able to act as members of other DAOs, creating a fluid ‘DAO mesh’ or ‘internet of work’.”
DAOstack envisions tens or hundreds of millions of people are participating in this kind of collaborative economy – one in which no one wields a disproportionate amount of power, all are rewarded in proportion to the value they contribute, and everyone is incentivized to act in alignment with the common good.
What is the utility of the token?
The GEN token, which is the attention token within the DAOstack ecosystem, aims to incentivize the people who act in alignment with the greater good.
In a bid to make DAOs as resilient as possible, DAOstack offers the ability to separate token ownership and voting rights (so that influence isn’t for sale). The first is called the GEN token, and the second is called the reputation token.
Zemel explained: “Reputation cannot be directly transferred from peer to peer, but rather is distributed by the passing of proposals, or by the adoption of protocols that result in reputation being transferred automatically.
“For example, there might be a protocol through which reputation is distributed for positively reviewed work.”
The GEN token also helps with efficiency, in the sense that it allows people to place a stake for or against a proposal that influences whether or not it will be brought to the attention of the voters (the reputation-holders).
Tokenholders of GEN will be rewarded with GEN when a proposal they have staked for is brought through.
To join the DAOstack whitelists, click here.