S3 E6 | DAO Decentralization Thesis & Artificial Intelligence w/nintynick

AI is a long-term vision for Hats - For now they’re more focused on what is a role for a dao - Hats is narrowly focused on: what does a dao contributor need to do great work. - Eg - based on your hat, you should be able to parse the discord and see the relevant info to help you do your work

DAOs will likely become large networks with shared incentives and coordination tools, made up of smaller units (which can still be quite bit) that act in a more directed and centralized way.

Are DAOs bad at building products? - Product teams need continuity and shared context - We need more tools that can coordinate things like product work.

DAOs can’t yet do the same complex things as big companies, like managing complex supply chains

How to approach decentralization for a tradco - First map the governance surface: - Who are all stakeholders, what are their authorities - Then figure out what is desired state. - Then doing one authority delegation at a time, and then building meta process around assessing, choosing, and decentralizing specific authorities in the community.

What do people need to do to succeed? - DAOs are about coordination so think about what is effective coordination - How is authority delegated: empowering specific individuals with their roles and power - Values alignment. Recruiting right people in terms of skills but also vibe - Organic memes alignment. People spending the most time, - Mental and... See more

Common mistakes or roadblocks with prog decentralization - Early team finds it hard to part with excess authority. Not necessarily for bad reasons. Taking hands off wheel generates fear - Not finding the right people for the dao. DAOs can be big, and they don’t have enough good people to do everything

The intersection of AI and DAOs - Agent-based modeling is an area of ai research - Similar to governance mapping (which approaches this problem from the realm of economics). - Look at all of the agents in a system and what their capacities and goals are - Use massive simulations to understand the ways that participants could act - Or teach them how... See more

When does it make sense for a tradco to decentralize? - It’s very hard. Need a v good reason. - Why would you want to: - Decentralize governance - Decentralize ownership and upside - Can potentially make product or protocol better because you’re getting direct feedback

Progressive decentralization is not enough - continuous decentralization is important. Because even in true DAOs, there will always be forces that tend towards centralization