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

-How power within the organization is allocated

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 membership is granted

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.

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.

-How consensus is signalled

However, token ownership also keeps out those who may be affected but don’t have the capital for buying tokens—a paradigm that becomes increasingly unjust as decisions made become increasingly consequential. It also creates opportunities for vote buying through unbundling economic interest and governance power, where those who are not personally in... See more