DAOstack: Effective DAO solution

in crypto •  5 months ago

Source An organization as defined by the Merriam Webster dictionary is a company, business or club put together for a particular purpose. An autonomous organization is an organization that has the ability to self-govern itself without any external form of control.

So now what is a decentralized autonomous organization or DAO as popularly known?
The Decentralized Autonomous Organization is one in which the power that is used in the governance and control of the organization is justly and fairly distributed to all parts of the organization.

DAO and DAOstack

With the advent of the internet, the way in which humans communicate and interact with each, and also the way in which information is retrieved. You basically don’t need anybody these days to get most information or do certain things, with access to the Internet you got what you want. Although vastly useful , the Internet is not very cost effective for uase on a large scale especially organizational needs which is why blockchain has become somewhat of a cyberHero because it gives the internet it lacked providing a more open, reliable and programmable accounting system.
For those of y’all that don’t know what the blockchain is .
Well the blockchain is just like the internet in sense of its ability to grow in size and still remain stable. As defined by Don and Alex Tapscott, authors of Blockchain Revolution 2016 “Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Now with all this information, the tailored definifition of the DAO emerges , the Decentralized autonomous organization (DAO) is a crypto-economic network based on the blockchain technology organized to achieve a particular goal or serve a specific purpose.


DAOstack is like what the MAC is to Apple or the Android is to Android devices , it is the system by which the DAOs operate. It allows developers who create decentralized apps (DApps – which means the app can be created and contolled by different people or machines via P2P) and anyone with considerable contribution to the Dapp to be able to manage the system. The DAOstack acts like a canvas for the creation of Dapps and for the implementation of DAOs which means the logistics behind the traditional organizations and its governance can actually be simplified for the average individual who now has the power by virtue of his/her level of contribution to a specific DAO to earn, make vital decisions and grow in reputation.

To allow for the creation, implementation and control of DAOs , the DAOstack uses tools like the Alchemy, Arc.js, Arc, ArcHives and Ethereum.

Source: Whitepaper

As seen in the future above, DAOstack has a community of DAOs more like an ecosystem with DAOs interacting and operating divergently and convergently as desired but all actions are aimed at achieving cost-effective maximum capacity of each specific DAO. Alchemy is a Dapp embedded on the DAOstack that controls how funds and resources are allocated among agents according to the goals and protocols of said DAO or Agency. The Arc is the foundational framework upon which the DAOstack is built, it is what allows for reusability of smart contracts residing on DAOS to be create and configure other DAOs. Now in compliance with DAOstack’s goal of further decentralizing organization participation, the Arc.js is a javascript API for the Arc framework which allows users who are not familiar with the arc framework or the blockchain to build Dapps or develop their own custom DAOs on the ecosystem. The Arc.Hives as the name suggests, it is where all resources/data relevant to the operation and maintenance of the Dapps and the DAOs ecosystem are kept to be called upon whenever needed.

Impact of DAOstack on Industry

Ever since the introduction of the internet and then the blockchain, the formations of companies and organizations have become less complex and more accessible to the average person. Companies are changing the way they structure their organizations and run their human relations department. Now to improve corporate and organizational practices especially on the internet, the DAO was created.

The DAO stack platform was created to enhance the creation and implementation of the DAOs with the use of specific tools described above. One of the main problems of organizations is scalability, with increasing staff there in increased difficulty in running the organization especially lower reputable members might not see the need to participate effectively in the affairs of the organization. DAOstack provides solutions like holographic consensus as discussed in the white paper . Agents are allowed to place stakes on the various proposals to predict their probability of passage , this causes for proper streamlining and evaluation of every proposal whether proposed by a highly or lowly reputable thereby increasing efficiency in scalability.

Source: Whitepaper

Also to improve interoperabililty between DAOs , the DAOstack encourages less hoarding of knowledge by an existing organization to cripple competition from having the ability to pose a threat. Concepts like “Intellectual Property (IP) which makes anti-rival resources into scarce elements to make them sellable – DAOstack Whitepaper” will be wiped out by incentivizing or monetizing the sharing of these resources. With the Arc framework on hand, the DAO marketplace has become a more open and interactive one.

Impact of DAOs on the Economy

The idea of a DAO means that every agent in the organization has decision making power to a certain degree of course. In a family where opinions are valued based on the reputation or money each member has, any contribution from a member of low estate is disregarded, this leads to disunity and very slow development of the family. For a system to be effectively productive, all parts need to be at their operational best. Which Is what DAO is adding to the economy by creating a more open organizational system and encouraging more interoperability between DAOs improves the overall status of the economy. With easy access to resources, the cost to create an organization is reduced and since the ethereum blockchain has a trusted and incorruptible attribute, it discourages fraudulent intentions and encourages elite developers to become more involved in the organization thereby increasing the efficiency of the agency.

A DAO can take different forms, a simple assembly or the federal fractal structure, the DAOstack framework is programmed in such a way that no agent belongs to one particular agency. Agent and agencies are given power according to merit which is based on reputation on the platform the freedom exert his/her influence on any DAO and DAOs can participate in decision making processes of other DAOs. The DAO structural template will be a vital ingredient in modelling efficient and cost effective organizations in the coming future.

For example, consider when the government is giving out contracts and some individuals are favoured over the others not because they are qualified to carry out the task but because they are familiar with higly placed corrupt officials who are also looking to benefit from the wrongful award of the contract. With the DAOstack created DAO, this situation is eliminated because of the blockchain technology, noagent or agency has the power to make absolute decisions , every decision is gotten from a consensus.

By possession of the GEN tokens , each individual has the ability to place a stake on any project proposal to be built atop the DAOstack. To reduce the chances of wealthy token holders, project proposals must also be approved by individuals of high reputation which is gotten by participation and valuable contribution to the network.


The benefit of the DAO or Dapp is that due to the blockchain technology background, it is an evergrowing organism, learning and adapting to its economic environment assimilating the most valuable knowledge because people will vote “yes” for a proposal that is detrimental to them.

Differences between DAOs and Traditional organizations

  1. Not corruptible
  2. Change
  3. Scalability
  4. Cost effective
  5. Monetization
Criteria DAO Traditional organizations
Security Very High Low
Payment Instantly Monthly or yearly
Creation Cost effective Expensive
Currency GEN Tokens FIAT money

For more info on DAOstack:
Check DAOstack Website
DAOstack Github


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thank you so much fam

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