The Future of DAOs and Decentralized Governance : DAOstack

chadrona (63)in #blockchain • 6 years ago

Being the most intelligent species on the planet, man is capable of many incredible feats —feats that other species on earth is incapable of. The reason for our success as a species, besides our intellect is due to the fact that man is capable of large scale collaboration and cooperation.

Through collaboration, man had built complex structures of civilizations and governance that have lasted for centuries or even millennia. This is a proof of man's capability as well as the power of scaled cooperative intelligence.

Collaboration also enabled man to achieve goals previously thought as impossible— such as flying in the sky, exploring the ocean floor and our greatest achievement to date: going to the moon.

Unfortunately, this system of collaboration is not perfect. It is plague with problems, with corruption as the most glaring issue. The reason for this is that in order to cooperate, we must choose a person, or a group of people to lead and govern us.

This by itself is not wrong. Indeed, we can achieve our goals a lot easier if there is only one person or a group of people taking the helm. As the saying goes "a ship only needs one captain to stir it". Too many people making decisions can easily led to confusion.

In order to address this issue, man had try inventing new system of scaled collaboration, this include the internet and the blockchain—with varying results. But along with the invention of the blockchain, a self-organizing network was also conceptualized. That network was called DAO.

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DAO = Decentralized Autonomous Organizations

According to the whitepaper, DAOs...

...are open, self-organized networks coordinated by crypto-economic incentives and self-executing code, cooperating around shared goals. Powered by the network effect, DAOs provide a revenue model and incentive for the production of open, shareable resources (such as open-source code and a music file). - DAOstack Whitepaper

So DAO is a self-executing code centered around decentralized governance. It is decision-sharing and talent-sharing network that incentivized individuals for sharing open-sourced resources and ideas.

But DAO is only a concept, an abstract idea: it needed a platform...

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What is DAOstack?

DAOstack endevours to establish collaboration thru crypto-economics and technologies. Using incentives as fuel for collaboration, thousands or even hundred of thousand can collaborate woth each other to reach a common goal.

DAOstack itself is not a fixed for governance but rather an ongoing experimentation or a sandbox, where organizations can mix and match governance structures that fits them. One can think of DAOstack as LEGO building blocks and WordPress templates.

The DAOstack structure is composed of the following: The Arc Framework, Arc.js, Arc.Hive, and Alchemy. All would be explained in this article.

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Arc Framework

The Arc is DAOstack's base layer and a library of smart contracts implemented on the Ethereum Blockchain. Arc is written in language called the Solidity code. Its modules can be mixed and matched to create complete governance protocol for any DAO.

Arc is the product of years of research by some of the best schooloars of decentralized governance. The result is a system that is resilience, effecient and scalable.

Arc.js

Arc.js is the JavaScript library for front-end developers. It allows the development of decentralized applications (dApps) without the need to be familiar with Arc's main language: Solidity.

Arc.js allows any organization or industry to create their very own custom interface that can be used and deployed almost anywhere.

Alchemy

Alchemy is the very first application develop for DAOstack. It's an intuitive user interface whose function is to manage the budget and allocate resources for decentralized organizations.

Alchemy also allows anyone to create their own DAO, invite individuals for decision making, and even create tokens if they so desired.

The Holographic Consensus and the GEN Token

DAOstack's main aim is to creat a system of governance that is incorruptible. To account to this, DAOstack had seperate it governance template to two different currencies— token ownership and voting power respectively.

Token ownership refers to monetary wealth or in DAOstack's case the GEN token. The GEN is a token that can only be used (at the moment) for "staking" for or against proposals.

To earn more GEN a token-holder must stake his/her tokens for a proposal to pass. If the proposal passed then the stake-holder will gain more GEN tokens and will lose of tokens if it failed to pass. The same thing is true if the token -holder stake against a proposals.

Another thing to note is that GEN cannot be used to buy votes or voting power. This is to prevent wealthy individuals from manipulating the passing of proposals and destroy the DAOstack ecosystem.

The "staking" system effectively amounts to a prediction market and it runs parallel to the voting apparatus, and is the heart of the Holographic Consensus.

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Genesis DAO

The Genesis DAO will launch in Spring 2018. Where it will be piloting Alchemy to manage a fund right away. It will then be tasked to allocate funds generated by the GEN token sale.

The purpose of the Genesis DAO is to advance the DAOstack ecosystem.

The Vision

DAOstack's vision is to create an ecosystem where no one individuals possessed disproportionate amount of power. It wants to establish a system of government where millions or maybe even hundred of millions of individuals can produce, share, and learn while being incentivized in the process.