So much is being written about DAOs these days. What do you really need to know?

Key concepts + resources 🧵👇 1/14
Why they matter: they shift the model from attract-extract to attract-cooperate @cdixon. 2/14…
Networked web2 companies need to attract users first. In this stage they are good actors. Once the user base is established, they shift to extracting value

This puts networked web2 companies at odds with their users. Think the Facebook Files.

A decentralization classic. 3/14
What they are: “a group organized around a mission that coordinates through a shared set of rules enforced on a blockchain @ljxie. 4/14…
This is the best definition out there.

The mission can be anything - that’s the power of the concept. The blockchain is what aligns incentives via tokens and ownership. 5/14
Where they come from: the ownership economy, @jessewldn.

The value of Facebook and Twitter is not just in code, but also in users. The next evolutionary step for software is user ownership. 6/14…
Community ownership is a tool to build economically cooperative networks. Crypto offers a native way to accomplish this via tokens.

This article doesn’t even mention the word “DAO” but it lays the foundation for much that followed. Ahead of its time and still relevant. 7/14
How they emerge: through progressive decentralization, @jessewldn. 8/14…
Good products aren't designed by committee. Product-market fit comes before community participation and ownership.

This is not the only model to form a DAO, but it’s the best one. 9/14
How they behave: as networks, with company and coop features, @mariogabriele, @awrigh01, @thattallguy, and many others. 10/14
DAOs are owned and operated by the people who create value in them. They are informal in their reporting structures.

This article is the most comprehensive resource I’m aware of, covering history, philosophy, landscape, and more. 11/14
How they create value: through network economies, @packyM. 12/14…
Networks give DAOS the potential “to thrive and knock off incumbents. This will be the strongest moat for successful DAOs. … as the DAO gets stronger, more people build on top of it, which makes it stronger, which attracts more people, and so on.”

Another great overview. 13/14
DAOs are all about democratizing the web. I hope this thread makes it clear how and why.

Keep learning and keep building! 🔥🙌 14/14

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More from @carefullycnsdrd

30 Dec 21
@nntaleb's brilliant lecture series on probability:

Inferences drawn based on observations of a fat-tailed distribution will fail out of sample - which is to say, in the future.

The lessons here are so important that I’m sharing my notes. 🧵👇…
1. The Law of Large Numbers (LLN) states that sample mean converges to distribution mean for n large. The problem is that we live in the preasymptotic real world - before “n large.” In particular, n is never large enough in Extremistan.
2. Mediocristan vs. Extremistan: In Mediocristan, tail events are the result of many moderate events. If you find two people with a combined height of 13 feet, the most likely combination is 6’6” and 6’6”.
Read 13 tweets

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