Thread by @TheHypeMan2019

1/ NFT discussion series by @paji_a #14: "What is a DAO? - The NFTJPN Journey Part 4" #NFT #NFTcommunity #anime #japan #pajiEnglish #NFTJPN

2/ Today, I'll continue the topic "What is a DAO?" in preparation for NFTJPN's conversion to a DAO. So far, I have emphasized that a DAO is an organizational entity with advantages over a company.

3/ Why was the world able to develop societies and people's lives prosperously through corporations in the first place? We can answer that by taking a bird's eye view.

"4/
Corporation
(1) Create a corporate organization
(2) Develop services by investing ""resources"" such as people, goods, and money
(3) Sell the service
(4) Consumers purchase & use the service.
(5) Sales/revenues are returned to the company"

"5/ (6) Increase in ""money"" and other resources (also increase in people and goods)
(7) A centralized ""important person"" decides how to use resources such as money
8) Develop better services
(9) Provide & sell better services
(10) Consumers buy & use better services"

6/ Through the repetition of this cycle, better services will be provided to the world.

7/ What is important here is that in order to provide these services and increase resources, the services provided by the organization must be value-added and develop society in a positive way.

8/ If these resources become negative each cycle, resources such as people, goods, and money will decrease, and the realization of the vision will no longer be possible.

9/ In the case of a volunteer organization, goods such as intellectual property and brands are accumulated in the organization, but money is limited to donations, etc.,

10/ and people tend to fall into a spiral of negative releases due to lack of livelihood and reduced enthusiasm if economic incentives cannot be designed.

11/ If resources increase steadily, the vision that can be realized will become larger and deeper. What is important is that the organization that gathers resources, whether it is a DAO or a company,

12/ should add value in the area by conducting some kind of activity, generate sales/revenue from the people and companies involved, and increase all resources centered on "people, goods, and money.

13/ If we can maneuver the increased resources so that they increase with each passing cycle by reallocating them appropriately, the result will be to fulfill the vision and provide better service to society as a whole.

14/ In the case of a company, the service is refined more through friendly competition with competitors. If we look at it historically, the company has been the best allocation process for the growing number of resources in the organization.

15/ Corporation works very well with a centralized chief executive making decisions about reallocating resources for the next cycle. With some exceptions, the structure allows

16/ the most important and most influential decisions to be made by the "people" who are theoretically most capable of making the right decisions for the organization.

17/ We are at a critical juncture where DAO may be considered the superior organization type, realizing whether or not important decision-making and majority of resources can be

18/ delegated to the community to accelerate and circulate the pace of resource growth beyond that of the Corporation. The key to this is the design of a "centralized automated organization" that can involve not only internal resources but also external resources in solidarity.

19/ A "centralized automated organization" reads, in other words, an organization whose rules and incentives are made transparent by smart contracts. DAOs can expand the size of the individual within the organization.

20/ Although the blockchain does not allow transparency and control over the hearts and minds of "people," it does provide complete transparency and automatic enforcement of the rules and incentive designs related to money.

21/ Simply put, the will of the community can be directly reflected in the policies of the DAO. Participants and participating companies that gather around the "automated center" can have solidarity on fair terms.

22/ By "automating the center" (smart contracts) that directly reflect the will of the community in resource allocation decisions, people and companies that agree with the rules and incentives will

23/ be involved in an autonomous and decentralized manner. This will allow us to realize our vision in a bigger, deeper, and speedier way.

24/ In that sense, the DAO can be a hub expressed in a smart contract that can unite all resources from individuals to companies around it, from an organization closed within the vessel of a single corporation to a centralized DAO that can be automated.

25/ The greater the vision that the hub aims to achieve, the greater the benefit of being able to increase the number of resources.

26/ In addition, since the central, automated part of the DAO is hard to change once designed, if the rules and incentives are disputed and solidarity is not achieved, the community will split autonomously and derivation will create a fork, or dissolution will also take place.

27/ The cases of Ethereum and Ethereum Classic and ApeDAO are examples. To be continued next time.

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