We have been looking to provide a broad overview on blockchain governance from both theory and practice in our newest paper. Still the cutting edge in human coordination. Here an intro thread & blogpost 👇
1) Blockchains and DAOs extend a new era of organizational design driving distributed innovation systems, that span open-source communities, platforms and open organizations - pushing the institution firm out of the center of prominence
2) Blockchains function as neutral, shared databases, on which crucial components of distributed innovation systems depend - architectures for collaboration & evaluation – facilitating the networking of peers, without the market power costs of centralized operators
3) While the internet has reduced transaction costs due to distant search, blockchains are alleviating monopolized trust on traditional platforms based on autonomous code (DAOs)
4) Governance of the infrastructure: Crucial to balance immutability/stability & change - stable institutions have been more successful, but systems need to evolve; broad stakeholder representation is important for legitimacy while challenging scalability of decision making
5) Liquid democracy structures are blending the best of representative & direct democracy - anyone can directly vote on issues, if well informed, or delegate one’s voice to a representative (like a liquid management board or protocol politicians) - solving rational ignorance
6) In the end, social consensus is what defines a cryptonetwork - the option to fork is the most crucial instrument of last resort to force decision-makers to take stakeholders into account, while effective governance gathers maximum stakeholder voice in order to avoid exit
7) Multiple layers define governance - it is culture that represents the deep values driving participants (i.e. the social protocol that runs on people’s minds) - culture shapes all governance layers above and especially also which protocols participants self-select towards
8) Bootstrapping DAOs: establishing a vision, purpose & culture (& memes), setting objective functions (incentive systems) & communicating those to enthusiastic initial members (pot. incentivized by early token issuance) until network effects kick in to self-sustain growth
9) There is room for DAOs, covering broad ranges of objective functions, value systems & governance systems; when code and data are open (&/or user-owned), governance driven by values, norms & community composition - access to knowledge, offers sustainable competitive advantage
Read the blogpost and the full attached paper: medium.com/greenfield-one…
We have covered & mentioned projects incl. #Ethereum #Bitcoin @Polkadot @decredproject @compoundfinance @NexusMutual @oceanprotocol @MakerDAO @AragonProject @daostack @joincolony @tezos @cosmos @ArweaveTeam @teamspacemesh @multisHQ
Thanks a lot to @mlphresearch @papa_raw @JackALaing @dfauchier @LeBastif @lrettig for providing valuable feedback to the paper 🙏
