DAOstack - the future of decentralized goverance
INTRODUCTION:
During my days as a High School Student, me and a couple of my friends came together to form a club called “The Literature Club”. We elected the oldest of us as the president, and all decisions were made by him, ultimately, he had the final say in every decision making in the club. It turned out that the elected president had no ideas when it came to literatures, and so he made a lot of wrong decisions, without the members of the club carried along. It got to a time that members started leaving the club, because they had no say in the decision making of the club, and the club wasn’t achieving the goals we set out to achieve.
Everyday, people come together to form organizations so as to achieve shared goals. These goals are achieved by making decisions, hence decision making is very vital to the achievement of the said shared goals. But how is it ensured that decisions are not flawed, how do organization avoid what happened to me & my friends’ club? Well, I have an answer to that. The answer is DAOstack.
What is DAOstack?
DAOstack is a decentralized platform that enables people to make decision effectively and efficiently, so as to achieve specific shared goals. It can be regarded as an operating system, on which DApps and DAOs can be built.
DAOstack provides the tools by which DAOs are created, operated and governed. DAOstack consists of:
DAO:
DAO stands for Decentralized Autonomous Organizations. It is a concept that is gaining popularity each second. This is due to the fact that DAO holds the promise of people coming together to form an organization to achieve a said goal, without a centralized and concentrated power. With DAO, everyone in the group has a say in the decision making of the group, since power is not centralized, rather it is decentralized
Alchemy:
Alchemy is the first app built on the DAOstack. Alchemy gives a user interface by which users interact with the DAOstack. Alchemy is to DAOstack as Samsung Experience is to Samsung.
DApps:
DApps are apps that are built on the DAOstack. DApps are built to meet various needs which each respective DAOs require.
Arc.JS:
Arc.js is a JavaScript library built on top of Web3.js (Ethereum’s JavaScript API). Arc.Js allows front-end developers to build DApps without knowledge of the Solidity programming language. Hence, Arc.Js can be regarded as the API of the DAOstack.
ArcHives:
This is a registry that contains records of DApps and DAOs. These records are data from DApps and DAOs built on the DAOstack. These data ensures easy communication between all DAOs of the DAOstack platform.
Arc:
Arc is a Solidity framework on the Ethereum blockchain. It enables DApps to be deployed, removed and upgraded. Hence the arc is regarded as the WORDPRESS of DAOs.
How DAOs improve the cost, efficiency and structure of organziations:
Recall that the Arc framework is the WORDPRESS of DAOs. There are some characteristics which the ARC framework possess, these includes:
Adaptive:
the arc framework is open source, this would attract independent developers to DAOstack and in turn, these developers would build their own DAOs or DApps, and this would make DAOstack to be adaptive, because, as the DAOstack evolves, more DAOs or DApps are developed to adapt to current issues.
Modular:
the arc framework is modular, this means that, the building blocks (agencies) that make up the DAOs can be added, combined, edited or removed easily. All these can be done without the building blocks being redeployed unto the blockchain. And as you can guess rightly, this reduces costs a lot and also, it enhances security.
Upgrade:
when a DAO is created with the arc framework, it comes with a set of rules, which allows rules of the DAO to be changed. Also, DAO can upgrade its technical architecture, this means that DAO can evolve over time and thus becomes better.
From the characteristics above, it can be seen that the DAOs built on the ARC framework would:
- Be very efficient, since it has the ability to adapt
- Be cheap, due to the fact that ARC is modular, thus saving operation costs.
- Have an organization that keeps on improving, since it has the ability to upgrade itself.
Some potential use cases includes:
DAOstack could be used to value contributions made by members of an organization working towards a specific goal. For example, let’s assume a ficticious group called “Oki-Peter & Sons”, Oki-Peter & Sons is a group of programmers building a school website. With DAOstack, each contribution of members can be valued fairly.
DAOstack can also be used to allocate funds. For example a charitable organization called “Taofik Charity” can decide to allocate funds to students. With DAOstack, certain protocols can be set, and these protocols would ensure that the funds are allocated to students effectively and efficiently.
DAOstacks can also be used to rank certain products and/or services. Imagine an online group called “Rankers group”. Rankers group is a group that ranks the quality of hotels in an area. To avoid a situation in which some hotels are ranked higher than others, due to external influence, the online group could also be run as a DAO, with certain protocols set. This would ensure that no one person has total control over the ranking process, hence the ranking would be free from external influence.
With DAOstack’s distribution of power, corruptibility is a thing of the past:
Let us use another case scenario to show that the DAOstack is free from corruptibility.
Firm A comprises of 4 people, they each have different influence in the decision making, this influence is as a result of the points they each invested in the firm.
Ali: 50 points
Nedu: 400 points
Inphinity: 300 points
Iwinosa: 100 points
As seen from above, Nedu has the highest influence in the decision making, even without participating. This means that once Nedu can be corrupted, any decision making in the Firm is corrupted, since the influence is centralized and concentrated on just him.
With DAOstack, the story is different. DAOstack employs a technique known as the Reputation system, where each member has an influence in decision making based on his/her reputation on the reputation system. Reputation is the representation of a member’s professional credibility and influence. Reputation cannot be bought or sold, as seen in other traditional blockchain tokens. Reputation is earned due to participation and contribution to the group. Also, the reputation scores could also be set to dissipate with time. With this, when decisions are to be made, corruptibility cannot come into play, as no one member of the firm has a complete sway over decision makings.
Advantages of DAOs over traditional form of organization:
Power is not centralized or concentrated on one/group of person(s):
This means that everyone is involved in the decision making, hence the the probability of a bad decision making is very low. Also, the organization is not prone to corruption, because no one person or group of persons has a very large influence over the decision making.
Every member participates:
I hope you all remembered that I made mention that DAO uses a reputation system. I for one, as a member of a group would like to have an influence in the decision making of my group, therefore I would participate and contribute to the group to build my reputation. I am very sure this is the same for most people out there. Hence, there is no dormant member.
Incentives are involved:
DAOs make use of tokens. Tokens are distributed to people that contribute values to the organization. Also, tokens gain benefit from the value created by the organization. This means, as the value which the organization create increases, the value of the tokens increases. This means that the organization can incentivize members to contribute to the achievement of the shared goals.
Benefits of evolution of the DAO and DApps
DAOstack allows DAO and DApps to evolve with time, this means that there is no limit to DAOs and DApps. This deeply saves cost for organization, and it also ensures that organization is efficient, since DAO and DApps would only use current technologies.
Conclusion:
If DAOstack had been used to run “the literature club” during my high school days, I am certain that the club would have achieved the goal it was set out to achieve. Hence, if any organization wants to avoid the same situation that happened to my high school club, they should be run as DAO on DAOstack.
Do you want more information, you can as well, check DAOstack Website
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Great job on this @okipeter! I like your book club example. I've actually been in that situation too haha funny how people are with clubs like that. I'm going to spend some time this week looking at DAO stack and appreciate your review.
Yes @antimetica, it was a sad experience. That greatly discouraged alot of my friends. But with DAOstack, I'm sure my friends would be reassured.
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Nice write up @okipeter.
Thanks @focygray!
Really enjoyed the opening paragraph. I think that's where you won. Congratulations
Thanks alot. Your entry was the bomb also.
Nice one...I loved your practicalities.
Appreciate that boss