Reading Bigeng｜DAO·Matters Web3 Online Learning Meeting Experience

The Matters Web3 online learning session "departs" every Friday at 11 a.m. Today, I asked an old driver (alarm clock on my mobile phone) to remind me to "get on the bus" on time and listen to the whole thing.

The way to participate is to join the Matters Lab Discord community first and find the #MATTERS-MEETING-ROOM category in the menu area (or click the green join button that appears at the top when the event starts); Travelloggers holders can replay it at any time Welfare (requires form verification), can be considered one of the empowerments of NTFs!

Today’s topic is DAO.

■ Before it was called DAO for short

Decentralized Autonomous Organization (DAO) is not a new concept. At the beginning, the speaker gave three examples. The most touching one was the news that one can become a landlord with one thousand yuan, and there was an online call for funds to buy a house .

I recall that I started a LINE group with my friends a few years ago, and verbally agreed to pay fixed fees at regular intervals to form a fund pool, which can be used to purchase lottery tickets at regular fixed amounts. Occasionally, we will win sporadic small prizes. Everyone is seeking to "reach a consensus." "To determine the "distribution of benefits", should it be distributed to all participants? Or simply throw it back into the pool to replenish battery life? In the end, the majority of people's preferences are manually calculated, just like a mini DAO?

If the concept of "friends" is extended, it becomes working with a group of "strangers" who do not need a basis of trust, and there is no hierarchical relationship with each other .

If the concept of "oral/written agreement" is extended and turned into a "smart contract" written on the blockchain, governance, operations, transactions, incentives, etc. will all operate according to preset rules .

If the concept of "manual statistics" is extended and turned into an "automated" operation, people holding "tokens" will express their opinions through voting .

As a result, this DAO has grown so big that it is not just satisfied with buying a few lottery tickets, but can also bid for the "U.S. Constitution" and "Dune Bible" , buy Blockbuster , and even aid Ukrainians ! It's about doing big things.

■ DAO is not a panacea

Technically, it is not difficult to establish a DAO, but what is more important is to think about under what circumstances is it suitable to use a DAO? Do we really need to use DAO? At this point, the speaker first explains the limitations of DAO from the "negative side":

• DAO cannot solve basic economic problems <br class="smart">meaning "Where does the money come from?"
  
  
• Voting cannot solve collaboration problems <br class="smart">Voting can answer yes or no questions, but it cannot answer open questions (What, What if, Why, How...), or in other words, this type of question must be answered The issue progresses to the point where it can be condensed into a yes or no format and then submitted to a vote; but this brings up another phenomenon. Not everyone is autonomous and has the motivation to actively discuss it (and is willing to spend time doing homework) .
  
  In short, what I want to express here is that before resorting to "majority rule", we should first go through a good communication and collaboration process, instead of jumping directly to "let us vote" which is equivalent to "let us stop talking and give up" It’s a situation where all solutions are beyond the imagination.”

• Don’t want to give up control <br class="smart">We need to examine the " purity " of DAO and distinguish those organizations that clearly want to have power but name themselves DAO. This may be good marketing, but it is not Decentralized governance.
  

■ Under what circumstances is DAO suitable for use?

Next, we can talk about what DAO is good at.

DAO is particularly suitable for handling tasks that are “ known and routine ” to everyone. Taking Lotto DAO as an example, which lottery to choose? How much should I buy? When the water level of the fund pool drops to what level does it need to be recharged? Distribution of winning amounts? The distribution methods of these resources/benefits can be converted into specific and clear numerical values. Improve market efficiency .

DAO is also a good tool for supervising " public assets ". No one is the boss of anyone. It avoids governance issues arising from conflicts of position and interest. It hopes to use the wisdom of the masses to replace the top-down (Hierarchy) decision-making of traditional organizations and demonstrate fairness .

■ Postscript: Quantifying responsibility?

After the meeting, everyone was still unfinished. There was a lively exchange of opinions in the #matters-live-real-time text discussion . The tentacles of the discussion extended to "the greater the power, the greater the responsibility" of DAO, this responsibility (especially involving the law) Should/can it be divided into small pieces (tokenization, atomization) and traded (contractualization, financialization)?

Or is it based on accountability (holding responsibility to the person), and the responsibility must be borne by a centralized organization?

I don’t have an opinion, but I know that Matters Lab pushes this Web3 in-depth study every week, which will help build the Discord group into a community with self-motivated learning.

 The core mission that DAO hopes to achieve is to transform a chat group into a community with self-incentives.

—— Cooper Turley, co-founder of Friends With Benefits

🌱 Reflections on special writing are being serialized👉 01 ｜ 02 ｜ 03 ｜ 04 ｜

🌱 Follow [ Zhongshu Nervous System ] broadcast information and never miss it👇
Good Quotes from Good Books/Book Market News/Mind Map/Drifting Book/Coin Newspaper

🌱I appear on other platforms👇
【 Facbook ｜ Mastodon ｜ Medium ｜ vocus ｜ Potato 】