A Prehistory of DAOs

“While the development of the institutional and market forms of organization led to an emphasis on competitive advantages, development of the multi-organizational network form may shift the emphasis to cooperative advantages”

The report defines networks somewhat open-endedly. A key distinguishing feature between networks and the organizational forms preceding them is that networks are described as multi-organizational, emphasizing collaboration between “small, scattered, and autonomous” groups over larger distances. These groups do not necessarily share a distinct organ... See more

Based on Vitalik Buterin’s DAOs, DACs, DAs and More: An Incomplete Terminology Guide from 2014, a DAO could be described then as a capitalized organization in which a software protocol informs its operation, placing automation at its center and humans at its edges. For example, a software protocol could specify the conditions upon which an organiza... See more

In 2021, a DAO could be described as a voluntary association with the operating principles of digital cooperativism. As voluntary associations, they are a cross-jurisdictional way for strangers, friends, or unlikely allies to pseudonymously come together toward common goals, supported by a token model, incentives, and governance.

DAOs could out-compete by out-cooperating the modern firm.

Ultimately, the efficiency DAOs aspire to may not be defined as an economic function but as a matter of “better,” situated governance: one supported by deeper practical knowledge within an infinite game.

Tokens may be one key to unlock the ownership economy, but to reach a more equitable version of this future, we must participate in crafting the culture around token distribution, mediation, and governance now. This becomes important because, unlike shares in cooperatives, many tokens that double as governance rights can be sold on secondary market... See more