Thread by @TheHypeMan2019

1/ NFT discussion series by @paji_a #11: "What is a DAO? - The NFTJPN Journey" #NFT #NFTcommunity #anime #japan #pajiEnglish #NFTJPN

2/ Today, I am going to write "What is a DAO?" in respect to making NFTJPN a DAO. About 6 months have passed since the launch of NFTJPN, and thanks to your generous support,

3/ NFTJPN has been expanding its overseas recognition through daily Twitter space and monthly events in order to achieve our vision of "having overseas collectors purchase Japanese NFT works". We think we are getting there.

4/ As announced in the Discord, the major concept for the next event (the 6th art submission operation) is to move NFTJPN one step forward toward becoming a DAO.

5/ Currently, the core members and judges who have been involved since the start-up phase tend to be fixed, so we are working to decentralize authority and put in place a system that better reflects the will of the community.

6/ When promoting the DAO, we believe that it will go more smoothly if everyone involved in NFTJPN has a common understanding of the DAO.

7/ However, a DAO is a new concept that has emerged only in the past few years, and even among experts, there are multiple discussions and opinions, and the image of a DAO varies from person to person.

8/ Therefore, in NFTJPN, I, as the originator, would like to create a base design of the DAO we would like to aim for in NFTJPN, and with this as a springboard, I would like to deepen the discussion in the community.

9/ I would like to make the process open and hope to accumulate knowledge in the industry. The basis is this article written by Vitalik Buterin, the founder of Ethereum.

10/ Quite simply, "the central is an automated organization. "blog.ethereum.org/2014/05/06/dao…

11/ The DAOs I will write about here are only what I consider "ideal DAOs" for NFTJPN. Even if it does not fit the definition given here, I believe that there should be various DAOs for each community.

12/ I would be happy if you could use our case studies and many other findings as "material" for thinking about your own "DAO".

13/ To begin, I believe it is important that the DAO be a better organization than the Corporation in achieving its vision. If the vision to be achieved cannot be realized by one person, it must be worked on by the organization.

14/ And ideally, the DAO should be the organization of choice because it will be the most successful in achieving that vision, not some other kind of organization.

15/ The steps of the concept are as follows.

①Have a vision you want to realize (= In the case of NFTJPN, "Have overseas collectors buy Japanese NFT works")
↓
②(2) Confirm the vision cannot be realized by one person, meaning organization is necessary
↓

16/ ③ Consider the multiple options for creating organizations other than DAOs, such as companies, non-profit organizations, and online communities. (4) Select DAO if it is the best choice to realize the vision.
↓
④Select DAO if it is the best choice to realize the vision.

17/ While DAOs have some advantages, they also have many obvious disadvantages. Especially when the technical characteristics of blockchain's "decentralization" are demonstrated,

18/ those who have enjoyed centralized authority = vested interests are put in a difficult position. This is because DAO-izing the existing vision as it is usually greatly undermines incentives.

19/ At the time I conceived of NFTJPN, I had multiple options as to which kind of organization to proceed with. From the standpoint of a manager, I would have been tempted to choose the company method first.

20/ however, it isn't realistic to start NFTJPN from the beginning with all the requirements for DAOs that I am writing about, considering the cost and time required for implementation, the level of understanding of DAOs among community participants, my own capacity, etc.

21/ In reality, I have decided to try an approach that evolves from online communities to DAOs.

22/ But this project is in the realm of blockchain technology, and if realized, would lead to the development of the industry as a whole. Because this is an activity that is likely to attract a lot of sympathy from the community, I wanted to choose a DAO approach. We thought,

23/ To make a DAO viable from the beginning, it appears that either a time horizon of 10 years is acceptable, like bitcoin, or special influencing and funding power at the global level is essential.

24/ Realistically, if we could evolve from online community to DAO, it would be useful as a future insight.

25/ Now, I feel that there are several conditions that must be met to determine whether a DAO is the best way to realize that vision.

26/ This is because the incentives for those who promote DAOs will be properly aligned only when the subject matter is broadened to "for everyone," rather than "for the company" or "for me," which has been the usual way of thinking for organizations in the past.

27/ <Vision to date
Development of my company/self through vision
↓　　　　 ↓
Consumers　　 Fans

＜28/ DAO-oriented vision
Industry development through vision
↑↑↑　　 ↑↑↑　　 ↑↑↑
promoter <> participant<> Company

29/ I think, roughly speaking, that the bigger the dream and the wider and deeper the empathy, the better suited the DAO is. And a very important point of view is the fact that when you realize the dream that everyone expects,

30/ designing the organization as an incentive, coupled with economic rationality, it makes the realization of the vision more certain, larger in scale, and speedy.

31/ NFTJPN did not design a system of financial incentives at the net community stage. If money is attached to the project, even if it is just to cover the minimum cost to keep the project going,

32/ it is not open like a blockchain, and there is a risk that it will be seen as "a system to make money for a certain person or company". There was a high likelihood that we would be led in that direction.

33/ Therefore, other than using sponsorship money to cover actual expenses such as GAS fees, NFTJPN has been conducted so far on a volunteer basis by the participants (we are very grateful to the various people who have provided resources to make this possible).

34/ However, that does not mean that we want to keep it as a volunteer online community forever.

35/ DAO is a mechanism that goes beyond a joint stock company, where all community participants also receive financial incentives. It is an evolution of the online community, which until now has had to remain a volunteer-like community, with blockchain technology.

36/ Projects like Linux and Wkipedia, which are "done by everyone in the world on the Internet," could not take advantage of "financial technology" like stocks, partly due to the technical limitations of the Internet, which only smoothes the distribution of information.

37/ However, with the advent of blockchain, it is now possible to smooth the distribution of value even with data on the Internet.

38/ This step may seem small, but it is a tremendous revolution in the online world. Because what used to be an unobtainable concept of "shares" legally secured by the state in each country can now generate

39/ "tokens" comparable to shares for each organization without a centralized entity, and its existence and value can certainly be preserved.

40/ The revolution does not stop there. Smart contracts act as voting "tokens" that automatically send "crypto assets" of value to a specific company or individual's wallet once a "yes" or "no" decision is made,

41/ because programs can now be set up on the blockchain in such a way that they cannot be tampered with.

42/ A DAO is a revolutionary organization that can handle "shared resources" (such as people, goods, and money) globally, anonymously, in a common currency, and with voting rights.

43/ To find out whether NFTJPN will be able to realize a DAO that surpasses a joint stock company, we will provide a more in-depth explanation of "What is a DAO?" To be continued in the next article.

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