Thread by @_kinjalbshah

service DAOs are unbundling work

in a web3 world, we need to rethink the firm 👇

Blockchains unlock is trust and coordination at scale

These take the form of decentralized networks, with on-chain incentive mechanisms

Blockchains allow for coordination without needing to trust intermediaries

The nature of open source projects is that they are...open 🤪 What does this mean:

- many contributors for any given project
- often work first, reward second OR grant driven
- freelancer model

@nayafia's work on open source is an excellent resource to learn more

Lastly, we've seen a major shift into the gig economy, and now what we call the creator economy.

The thread I'd like to pull here - is that of optionality.

In a previous world, it was normal to work for one firm for 10+ years.

Today, it's deemed prudent to build your resume across a number of companies. Even more, to leverage your skillset outside of the 9-5

everyone has a side hustle

In the context of these 3 trends / innovations:

- blockchains as a way to coordinate + trust
- open-source contributor model
- gig & creator economy growing rapidly

service DAOs just make sense

Service DAOs are talent pools that allocate resources

service DAOs tend to:
- distribute work across a pool of talent
- accept tokens or equity as compensation
- contribute to open source networks

For Service DAO members it offers:

- exposure to a diversified portfolio of projects
- shorter timeframes to liquidity
- agency over their time and work conditions
- fluidity in and out of work

For DAOs broadly it offers:

- the ability to access talent in a crypto-native manner
- on-chain compensation mechanisms
- eventually, on-chain credentials to evaluate fit
- often removal of intermediary recruitment / talent fees

Long term this:

- aligns incentives with on-chain automation (e.g., source talent via on-chain credentials, real-time payouts, etc)

- turns workers into owners, offering asset holding optionality

- reduces the cost of turnover (in theory)

We're entering a world where DAO 2 DAO services will likely be a trillion-dollar market

What DAOs are tackling this today? There are many - a few my faves include:

🔥ᴗ🔥 - governance development DAO that's worked with SuperRare, Balancer, Rocketpool + more

@VectorDAO - a collective of designers, brand experts and creatives breathing life into our crypto products

@llamacommunity_ - leading the charge on treasury management strategies

@prtyDAO - a product first DAO spinning up ideas like PartyBid to make NFTs accessible to all

.@Cooopahtroopa has an excellent list of this growing category

There are still many outstanding q's, like:
- How will DAOs scale more practically?
- How do we accurately measure and reward contributions?
- What does regulation look like?
- Governance, governance, governance

but I'm confident DAOs will play a role in the future of work

Lastly, I want to call attention to two blog posts that were prescient of where we are today, and from where I drew a lot of inspiration

thecontrol.co/the-slow-death… by @NTmoney

medium.com/@jillcarlson/f… by @jillrgunter