1/ NFT discussion series by @paji_a #15: "What is a DAO? - The NFTJPN Journey Part 5" #NFT #NFTcommunity #anime #japan #pajiEnglish #NFTJPN
2/ Today, I'm continuing my discussion on "What is a DAO?" in preparation for NFTJPN's conversion to a DAO. Among resources such as people, goods, and money, money is the most important resource for the realization of the DAO vision.
3/ This is because money is a special resource that can be exchanged with other resources such as people and goods and has a high degree of liquidity that can be expressed on the Internet by utilizing the blockchain.
4/ The DAO theory I write here is only my "ideal DAO in NFTJPN". Even if it does not fit the definition given here, I think there should be a variety of DAOs in each community.
5/ I would be happy if you could use our case studies and many other findings as material for thinking about your own "DAO".
6/ If there is an abundance of money resources, it will be very easy to recruit human resources. If you can offer high rewards and prepare plenty of necessary materials as goods,
7/ you can get an image that it will be easier to get excellent people to join your organization. Among resources, money is the most valuable resource because it can be easily converted into other resources and has high liquidity.
8/ The advantage of a company as an organization is that it can convert future earnings into present money by using the financial function of equity, and by procuring people and goods from money,
9/ it can invest resources in the development and marketing of services to realize its vision.
10/ What is revolutionary about the DAO is that the blockchain allows individuals to access the global financial markets and risk their money without the backing of the state, and to become more than a company.
11/ This is the point where it is even possible to procure money. (This is a function that NFTJPN, which is currently volunteer-run, has not yet been able to take advantage of.)
12/ As the name suggests, DAOs are decentralized and are not well suited for directing and controlling people to achieve their vision. Even if some of the participants are capable of performing the task,
13/ they do not have the authority or coercive power to make them follow if they are not on board with it. Even with blockchain, it is impossible to manage and control the hearts and minds of people.
14/ On the other hand, for the centralized high-level executives who participate in the pyramidal organization usually employed by companies, the distribution of human resources is more controllable in a company than in a DAO.
15/ There are exceptions, but in most cases, the chain of command functions in such a way that a superior can say to a subordinate, "I entrust you with this project," and the subordinate can execute it.
16/ In the case of a company, as with money, the more influential a position is for the company, the more centralized the decision-making process is for the executives to decide who the people belong to.
17/ The shareholders determine the president, directors, and management team, and from there, people are appointed to positions such as officers and general managers, creating a pyramid-shaped organization.
18/ In many cases, DAOs do not have the same hurdles for recruiting human resources as companies. However, due to the flat nature of the relationship, it is difficult to manage and enforce.
19/ Empathy and enthusiasm are important to motivate a person. If the heart is in sync with the mind, we can expect autonomous actions from the individual.
20/ This is also a condition for the establishment of flat organizations in the absence of blockchain, and is something that has been tested in online communities.
21/ In the case of DAOs, adding money to the mix allows the design of organizational behavior and direction, reinforcing motivation through incentive design beyond that of a stock company.
22/ In addition to monetary rewards for contributions in the desired direction, governance tokens and NFTs can act like stock certificates or stock options in a company, and thus can function in a complex manner.
23/ What is interesting about DAOs is that even employees and consumers can enjoy incentives as part of the DAO. Participants and participating companies perform best when they are able to influence
24/ the design of incentives based on their contributions themselves, and when they feel comfortable with the system. In this respect, DAOs are better organizations than companies.
25/ Nevertheless, when pursuing the same vision, a DAO may be inferior to a company in the utilization of human resources. It is important to keep in mind that an autonomous decentralized organization (DAO) is not
26/ necessarily the best way to achieve a clear goal in the fastest possible time, just as the military of each country is a pyramid structure that can only be adopted from the top down. To be continued next time
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