Turing-Complete Governance

The role of managers, for example, is a coordination mechanism to ensure people are broadly aligned and doing what they’re supposed to.

-How created value is allocated

In general, governance power should be given to those who are truly invested in making good governance decisions and contributing to the community in the long term.

A DAO succeeds if its technical properties grease the flywheel of decision-making, community building and participation, rather than staying the center of attention.

-How power within the organization is allocated

-How membership is granted

Airdrops are magical because few human organizations have ever been able to directly tie ownership to participation and early adoption so efficiently and cheaply. Before crypto, this would require extensive, deliberate personal information tracking and human outreach effort, far beyond simply sending tokens to a list of addresses.

At the moment, the usual structure of a DAO is an organization whose on-chain protocol involves using a token that allows the holder to vote on governance decisions. Usually, 1 token = 1 vote. This token-centric method of governance bundles ownership and governance rights in that one asset, in a bid to align power and responsibility.

Blockchain-enforced execution of agreed contracts using consensus and transparency can, in numerous cases, reduce the need for the bureaucratic and hierarchical layers—the slow processes of legal and social recourse—that usually exist to coordinate humans to make decisions together.