1/ NFT discussion series by @paji_a #19: "What is a DAO? - The NFTJPN Journey Part 9" #NFT #NFTcommunity #anime #japan #pajiEnglish #NFTJPN
2/ Today, I continue my discussion "What is a DAO?" in preparation for NFTJPN's conversion to a DAO. I have been telling you that the sharing of an important resource for an organization, namely *money*, is the major difference that separates a company from a DAO.
3/ We will take an in-depth look at the benefits of storing sales in a treasury, deciding how to use it together, and automatically transferring the money, using Nouns as an example.
4/ The DAOs I will write about here are only what I consider "ideal DAOs" in NFTJPN. Even if it does not fit the definition described here, I believe that there should be various DAOs for 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/ Nouns is a "centralized automated organization" = a highly pure DAO, where money is automatically transferred from the treasury to ETH based on the community's decision to accept or reject proposals from participants and participating companies.
7/ Thanks to this environment, participants and participating companies that implement plans and measures can be involved in hedging costs and risks to their activities
8/ If money is shared, for example, there is a possibility to cover the minimum operating costs when challenging peripheral businesses by utilizing DAO's *goods* (ex: intellectual property), regardless of whether goods and services are sold or not.
9/ So, roughly speaking, there is a sense of security in a state where the financial compensation for the effort expended can be recovered without fail.
10/ This is a highly volatile activity, as to whether the surrounding business will be a hit or not depends on the timing. With financial support from Treasury, you can focus more on DAO activities without risk, because you will not be left out of the loop.
11/ As a result, the time and cost you can spend will increase, and the speed of development will accelerate due to the increased involvement of *people*.
12/ Conversely, in the case of old-style companies, the majority of *money* is shared by the organization with a small portion of its cash reserves. This makes it difficult for the *people* around them to step in and spend resources and money,
13/ since it is unclear how much sales can be made through planning and measures, and they start from a smaller scale.
14/ Why is automatic remittance important? Suppose a proposal for a meaningful project is submitted to Nouns, and the *money* is *approved* by the DAO's decision-making process.
15/ However, if the subsequent remittance task from the treasury is not automated, for example, if there is an intervening individual who performs the remittance work and is opposed to the plan, then there is a possibility that the remittance will be stopped.
16/ For participants and participating companies inside and outside of the DAO, if there is a risk that the money will not be transferred even if the community agrees and passes the plan, they will take a step back. It will also make it difficult for them to make
17/ meaningful proposals. This is the kind of politics and discovery that occurs when there is human intervention. This is a common phenomenon in a corporation. Conversely, if the core is automated, these problems will no longer occur.
18 On the other hand, it has been repeatedly discussed in comparison with dictatorships that deciding democratically is not always the best option.
19/ It is because a quick decision by the very best top management, who can see the future, can sometimes beat the democratic approach in the short term.
20/ DAO maximizes performance not by resolving every detail, but by giving discretion to the field as an autonomous activity by, for example, resolving the resources needed for the activity, ie. money.
21/ However, it is important to keep in mind that even DAOs are not always superior to a super talented top management company in making larger decisions regarding *money*.
22/ I would like to emphasize that this does not mean that only organizations that put 100% of their sales and other money into treasury are DAOs. We believe that a DAO is an organization that can automatically
23/ execute decisions made by participants without human intervention for the *majority* of the organization's important resources (people, goods, and money), i.e., an organization with an automated center.
24/ For example, a system in which 30% of sales are automatically "donated" by smart contracts,
25/ rather than 100% of sales being saved in the treasury, could be established in DAOs. If activities in DAOs lead directly to support, it could make the realization of the vision more certain.
26/ In the case of Nouns, how much we believe in the DAO community and its participants inside and outside, and how much we automate the core, will make a big difference in the character of Nouns and its success and scale as a project.
27/ Like mining, it is important how much people share in a fair incentive design with fixed rules and without regard to nationality, race, gender, etc., which will lead to the size and depth of the vision that can be realized. To be continued next time
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