DAOstack - The Next Evolution in Organizational Structure
The Evolution of Organizations
The method by which humans formulate and execute decisions has been evolving as long as we've walked the earth. As soon as it was identified that there were advantages to working in groups rather than independently, we've moved through many structures from tribal communities through a market-driven global economy. The one factor that's been in common between all the ages leading up to now has been the dependence upon building some level of trust within a group of people that are hard to evaluate and manage properly within an organization. We've certainly come a long way but it's easy to identify how as companies get larger, their ability to quickly and efficiently identify the most important issues and their resolutions gets less and less obvious. As such, there are massive global inefficiencies that have been accepted as the nature of business when it is brought on a large scale, simply because there was no feasible way to better manage the situation. That is, until blockchain.
Blockchain laid the foundation to fundamentally work around these issues by creating the first trust-less system. A system where everything can be tracked in a decentralized immutable ledger. This was a game changer, but was (and still is) so young that we weren't quite ready to reap some of the benefits. It evolved with the introduction of smart contracts on Ethereum, which then burst into the over 1,600 cryptocurrencies we know and love today. Many of these new projects are build upon the Ethereum protocol and use their smart contracts. This has lead to quite the boom in crypto popularity, and people are beginning to see the value of blockchain. So, now we have the foundation for trustless interactions built up on smart contracts which means we can perform all kinds of tasks, but how do these projects continue to adapt and excel in such a fiercely competitive industry? DAOstack recognized that for organizations to be scaleable and successful into the future, they would need some method of taking the billions of dollars of investments and match them up with the right people to solve the biggest obstacles that the core team may or may not recognize exist and/or will exist in these projects. DAOstack identified that we not only need the framework for trustless interactions, but also the framework to build governance into smart contracts.
How does DAOstack work?
DAOstack builds extra layers right on top of the Ethereum blockchain to provide the ability for developers to write in additional governance rules. This allows for token holders to incentivize and "campaign" for changes they feel are important to the project. Let's say hypothetically there was a project that was running into scalability issues. Those who hold a stake in that organization obviously want it to succeed in the long term, but individually they may not have the funding or know how to step in and single-handedly take on the issue. Typically, in this situation, a holder of that token might simply have to wait it out and hope that the development team has the right financing and direction to take care of the issue. They could try and reach out to the team to voice their concern, but if the funding and direction isn't coming from the top it's probably not getting done in that structure. With DAOstack, that token holder could propose a change that they feel needs to be made to the entire community. Then, other participants of the organization who each have a reputation and a stake in the company can vote on that proposal. If it receives a relative majority of the weighted voting power of the agents that responded, it will be accepted.
Visual Representation of Relative Majority Decision Passing
This is possible because of the previously mentioned layers that DAOstack adds to the existing ETH smart contracts. The base layer, Arc, is where the Ethereum Solidity framework has additional governance modules and templates configured to make it possible to use such a framework. However, without extensive knowledge of both existing Solidity code and the new functions added by DAOstack, this would be difficult to implement and manage. This is why on top of that, they've built additional layers. The Arc.Hives layer shares registries to enhance the network effect among collaborative DApps that are built. The Arc.js is a layer that makes it possible for users to code their application using familiar JavaScript code, which means that many more developers will have the capacity to work on projects built on DAOstack even if they don't know how to write in Solidity. The next layer is Alchemy which is the user interface where governance is viewed by participants. On top of that, you have your DAOs that are utilizing DAOstack. When you put it all together, you get a user friendly implementation that has the potential to alter the way business is conducted, for the better!
What else do I need to know?
DAOstack will be implemented with its native GEN token. This token allows the basic operations such as promoting proposals by spending or holding GEN tokens. The distribution of this token will be used to incentivize development, promotion, and adoption. The GEN token public sale has ended, but from reviewing their telegram group it sounds like the GEN token will start to be added to exchanges within a week or so, starting with Hotbit. If you want a good general video to summarize what DAOstack is and why it's needed, check out their introduction video below.
If you're curious to learn even more about this project, here's an interview with the CEO and architect Matan Field conducted by one of my favorite crypto content creators, Ivan on Tech (@ivanli on steemit). He gives a great example on how something like DAOstack could not only be used for DApps on Ethereum, but potentially on Ethereum itself to solve some of the scalability issues they currently face.
Last but not least, follow this project on social media and sign up for updates on their website to get all the latest and greatest news from the team! Governance mixed with decentralization is an interestingly difficult thing to achieve. This only makes DAOstack's solution that much more interesting. Keep an eye out for DAOstack and the projects that are built upon it, as we could be witnessing yet another paradigm shift in the way businesses are managed!
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