Thread by @TheHypeMan2019

1/ NFT discussion series by @paji_a #17: "What is a DAO? - The NFTJPN Journey Part 7" #NFT #NFTcommunity #anime #japan #pajiEnglish #NFTJPN

"2/ Today, I'll again pick up the topic ""What is a DAO?"" in preparation for NFTJPN's conversion to a DAO. Shared resources in an organization can be defined as such-
People: Human minds are hard to share

"3/ Things: Shared use does not depend on organization type
Money: Can be shared through blockchain utilization
We will dig deeper into *money* in order for DAO as an organization to outperform a company."

4/ The DAO theory I will write here is only my "ideal DAO in NFTJPN". Even if it does not fit the definition given here, I believe that there should be various 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/ Looking at modern capitalist society, a company invests money to provide services that enrich people's lives, and when consumers are satisfied with the services, the money returns to the organization in a cycle.

7/ The money given by consumers, excluding necessary expenses, is returned to or promoted by the organization's constituent members, its *people*, and converted into *goods* to create a cycle of investment in the next

8/ service to build a larger organization and realize the vision. DAO is an *organization* with an automated center that drives these vested interests out of the organization.

9/ If we look at Nouns from this premise, we can understand how powerful the resources used in the past to make decisions by the centralized executive people in a corporation were. It would look something like this.

"10/ Human: without □□□□□□□□□□ (automatic)
Objects: ■■■□□□□□□□□CC0+OSS
Money: ■■■■■■■■■■ 70 million worth of ETH + NFT
The ""■"" part is a percentage shared to the community as a ""core automated organization"" = DAO."

"11/ If Nouns were a corporation, the maximum shared use to people outside the company or from the company would look something like this
People: no □□□□□□□□□□ (automatic)
Objects: ■■□□□□□□□□CC0+OSS
Money: ■■□□□□□□□□70 million worth of ETH + NFT
"

12/ The organization cannot share most of the high-impact "money" to realize its vision. That is the limitation of a company and can be the area where a DAO can prevail.

13/ Nouns is structured in such a way that all sales and intellectual property accumulated through its operations are

14/ shared both within and outside the community, and it is clear that the company is committed to eliminating the existence of a centralized commanding officer. This is the result of the complete trust that is placed in the community's decision-making.

15/ In conventional companies, the use of resources (in this case, money from sales/revenues and goods such as intellectual property) obtained from the

16/ operation of services has been decided by a centralized chief officer, but at Nouns, the centralized system is automated, so that all DAO participants can think and decide together.

17/ By performing services on-chain and fully automated, operating costs are virtually zero. By minimizing operating costs with no labor costs, the resources obtained are almost 100% reserves that can be reinvested immediately.

18/ In particular, the fact that NFT sales are pooled in the DAO treasury, proposals for their allocation are accepted from participants and outside parties on Discourse, and if approved,

19/ ETH is automatically transferred to the proposer is the very essence of a core automated organization - a DAO. From sales to remittance, the decision-making process related to money is done without human intervention.

20/ It is an open organization in which everyone can participate autonomously, although there are layers with the Nouns founders and NFT holders, expressed in smart contracts as 'rules' (which cannot be tampered with and can only be changed by popular will).

21/ The benefits of automating the core of the organization are incredible. As long as the code can be verified, the budget and compensation design can be satisfied with the rules of *money*,

22/ and *people* from around the world can be motivated to help with the project. This is the ultimate way to gather human resources from all over the world.

23/ Suppose there is a service run by an organization in a country you are not familiar with, which of the two would you trust more, the "great "human" in the center or the smart contract?

24/ The code is more verifiable and reliable than the "human mind". Even if you don't trust a mysterious person like Satoshi Nakamoto, the Bitcoin program works reliably, which is why DAO is attracting resources.

25/ Simply put, the conventional centralized company leaves decisions to the minds of people, such as a chief executive, allowing room for politics and discovery to grow.

26/ DAO is a system in which decisions are written in smart contract as "rules" so that people can commit to them only by verifying the code, regardless of whether they trust it or not.

27/ These decentralized, automated systems are designed to allow people to be autonomous and active, whether they participate in this DAO or not, according to their own will.

28/ This eliminates the negative effects of being centralized, such as lack of supervisors, low salary, and overwork and inability to perform, which are common in existing companies.

29/ By pooling the money in a treasury like Nouns, DAO participants make a *resolution* and the decision is automatically transferred directly to smart contract, thus eliminating the need for centralized human intervention

30/ for money, an important resource for the organization. It is worth mentioning that this system reflects the will of the people and allows for more dynamic development, which NFTJPN will also find useful. To be continued next time

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