Thread by @unbanksyETH

My vision for the future: in next 2-5 years, traditional orgs will start "DAO units", independently-run org units with a DAO structure. These units will start as skunkworks project managed by a VP and success metric will be P&L with a focus on the insane margin efficiencies.

2. Companies with strong brand and loyal fanboys/girls will be pioneers here. Think @SlackHQ , @Apple and @Starbucks . Smaller upstarts will be able to experiment more efficiently but big brands will have the biggest reach.

3. This has been tried in the past btw - Remember My Starbucks idea? Small team of Starbucks employees spent their free time crowdsourcing ideas to launch new products. Many great concepts today, such as Free WiFi at all Starbucks, came from this program.

ecorner.stanford.edu/articles/starb…

4. DAO incentive mechanism will need to be thought out. In today's crypto DAOs, work incentive is tied to market cap of the underlying token. Contributors trad orgs would need to rally around company's stock price (why tho?) or rewards programs.

5. The more interesting incentive mechanism is the "org token": if DAOs economic output is tokenized, then purpose becomes self-reinforcing. Harder it works -> more economic value it outputs -> token goes up -> repeat. The "org token" becomes the DAO's incentive engine

6. As an example, let's say @Starbucks starts a DAO to grow its presence in Estonia and intrinsic value will be tied to 5% of Starbucks revenue. At ~$7M/year revenue (competitor), this translates to $700K/year IV - enough to employ ~20 DAO members and growing.

7. Creating "DAO units" will have immediate benefits to the parent org:
* Putting community to work
* Building what customer wants
* Recruitment funnel

8. Broadly, communities will dictate what orgs wins/lose in 21st century. Up until now, that has manifested through virality of Word-of-Mouth. @SlackHQ early growth was driven by insanely low CAC costs thanks to "Wall of Love":

twitter.com/slackhq/timeli…

9. But "putting community to work" will unlock value creation beyond WoM and marketing. Imagine mobilizing your community's loyalty into brainstorming, designing, building and launching new products. All in a decentralized and autonomous fashion.

10. By extension, letting the community build the product will shape the product strategy to "building what customer wants". This will drastically reshape the product orgs of today as PMs will need to learn new skills around "community management"

11. Most effective DAO members become your "recruitment funnel". There is no need for an interview when DAO contributions *are* the interview. The impact of this can't be understated.

12. Longer-term, these skunkwork "DAO units" will prove their worth with high operating margins and outsized productivity gains relative to parent org until they grow big enough to... replace the parent org

13. imo, this won't be a clean transition. VPs in charge of DAO units will need to have unique skills at the intersection of product and community management while maintaining political clout at orgs to make this happen. Honing skills in today's crypto DAOs is a good start 😉

14. So if youre wage cucking 9-5 while hoping for a future where DAOs rule the world, here's a challenge for you:

What would a DAO unit look like at your work?
What concrete value capture can the DAO own?
What incentive mechanisms?
What needs to happen to make it a reality?