DAOSTACK

DAOstack is an operating system for a new form of organization:

DAO. Decentralized autonomous organizations have captured the imagination of the best minds in the block space, but, despite their promise, have remained an abstract idea. One of the key points of failure is the lack of a solid foundation for decentralized supply chain management. At the heart of the DAO stack, Arc is an open, universal structure of intellectual contracts for decentralized management and collective cost management over a block chain. Just as HTTP allows you to create and interact with web sites and web applications, DAOstack allows you to create and interact with web companies, collaboration applications and DAO, and align their interests. The result is a new network of open cooperation, in which collectives can independently organize common goals and values, in addition to net economic growth. We believe that this will be a decisive step in the evolution of society towards a more sustainable cooperation and a sustainable future.

The future of the organization

The ability to organize and coordinate a large number of people well is one of the greatest forces (and drivers) of a society that has experienced a constant evolution over thousands of years. In this chapter, we will talk about the problems of today's organization today and about a new possible form of web organization: DAO.

Deprecated Organizations

The cooperation of agents increases their effectiveness with respect to external competing market forces. This is the main origin of the company and the reason why organizations want to grow. However, the coordination of a large number of agents is complex and expensive, and therefore organizations can not grow infinitely.

As organizations grow, they need a more rigid structure and, therefore, face a growing problem: a) maintaining flexibility with regard to rapidly changing conditions; and b) maintaining the coherence of interests, trust and interaction among their members. In short, the larger the organization, the more internal frictions with which it needs to cope; The smaller it is, the more prevailing is external competition. The actual size of the company is, as a rule, balancing the sweet spot between these two forces.

From time to time, the introduction of a new technology or paradigm shift can reduce coordination costs, push the scale and effectiveness of organizations to new levels. This leads to a transition to the landscape of work and business, and then to social change, as was the case with the invention of crowdsourcing and the Internet itself.

The Internet allows an open exchange of information in real time and peer-to-peer networks on a global scale. Thus, the Internet media became more scalable than the traditional media, and quickly assimilated them. However, the Internet itself does not support an open, equitable exchange of values and general-purpose coordination and, therefore, is limited in its potential to ensure global cooperation.

Block Chain

Blockchain is the second Internet revolution that makes for value and business what the Internet has done for information and the media. This achieves an unprecedented level of crowd coordination, completely excluding

problems of guilt and trust, and, consequently, forms the technological basis for decentralized autonomous organizations (DAO). DAO is a new form of scalable, self-organizing collaboration that is managed by intelligent contracts on the block chain. Many believe that the DAO adheres to the promise of the future of business and work, but despite the great craving in the blockchain community on this issue, a successful management system and operational framework for the DAO are still lacking.

agencies

The building blocks of DAO are intelligent companies or agencies (we will use these terms interchangeably). The agency is an atomic management unit, which is managed and managed by intellectual contracts on the block chain. It has its own token (associated with the advantages of the company's resources), its own reputation systems (related to trust and influence in the affairs of the company) and its own management system (its "charter", coded in smart contracts).

The management protocol built into the agency's intellectual contract can be anything that can arise. A simple example is a management system based on a proposal, with a majority vote of "yes / no" on proposals necessary for

approval and execution (which are one act in intellectual companies). For example, proposals may relate to the distribution of tokens, and voices may be weighted by the reputation of the voter. In the next chapter, we give several other examples. In heuristic visualization, it can look like this: