Introduction to DAOs - Ethereum Meetup Warsaw 28.04

INTRODUCTIONTODAOSDECENTRALISED AUTONOMOUS ORGANISATIONSFOR NON-TECHNICAL PEOPLE

ETHEREUM MEETUPWARSAW

@MACIEJOLPINSKI

HUMAN COOPERATIONAS WE TRANSITION TO THE DIGITAL SOCIETY WE NEED NEW COOPERATION METHODS

HUNTER-GATHERERLOCAL

AGRARIANSMALL SCALE

INDUSTRIALLARGE SCALE

WORD OF MOUTH

DIGITALGLOBAL SCALE

WORD OF MOUTH PRINT COMPUTER CODE

LEGAL SYSTEMS ???

MONEY JOINT STOCKCOMPANIES

16th century19th century

NATION STATES

PEOPLE INVENT ABSTRACTIONSTO COOPERATE

21st century

????

SHARERISK/REWARDS

COMBINESKILLSETS

Sea trade was risky, riskdistribution provided

steady returns

Captains, crews, traderoutes

Surplus capital couldbe reinvested into sea

trade

ALLOCATECAPITAL

EARLY JOINT STOCK COMPANIES

STARTUPSare the engines of value creation in

digital economy

high risk/high reward activities with

strong network effects

winner takes all

PROBLEM:

VALUE CREATION GLOBAL AND DECENTRALISED(WE ALL WORK FOR FB OR GOOGLE)

BUT WEALTH ACCUMULATION IS STILL LOCAL ANDCENTRALISED IN SILICON VALLEY

INDUSTRIAL ERA ABSTRACTIONS NOT ALIGNEDWITH DIGITAL ECONOMY

EVERYONE HAS ACCESS TO INFORMATION

FEW HAVE ACCESS TO INVESTMENT OPPORTUNITYIN DIGITAL VENTURES

BITCOINthe coordination network with software

based incentives

Bitcoin proved that people respond to

incentives expressed in computer code

Pure software with no 3rd party can

align human behaviours in the physical

world

PEOPLE RESPOND TO INCENTIVES

ETHEREUM - PLATFORM FOR PROGRAMMABLEINCENTIVE NETWORKS

ALLOWS TO DESIGN INCENTIVE MODELS FOR OTHERACTIVITIES THAN JUST CURRENCY CREATION

ALLOWS DISTRIBUTION OF ECONOMICRISKS/REWARDS OVER THE INTERNET

DAOincentive-based, economic

coordination mechanism on the

blockchain

WHAT IS THE DAO?

expressed in code and

transmitted via the Internet

allows people to participate in

risks & rewards of digital

ventures

TOKENS CREATE ECONOMIC LINKSBETWEEN DAO PARTICIPANTS

WEB 3.0 - THE WEB OF SHARED ECONOMIC GOALS

WEB 1.0WEB OF PAGES

HYPERLINKS

WEB 2.0SOCIAL NETWORKS

LIKES, FOLLOWS

WEB 3.0INCENTIVE NETWORKS/DAOS

TOKENS

influence influence

ETHEREUM WON’T BE ABOUT BUILDING PHOTOSHARING APPS.

IT WILL BE ABOUT DISTRIBUTING REWARDS FROMPHOTO SHARING APPS. THIS IS THE REALINNOVATION.

IF WE HOLD THE SAME TOKEN, WE HAVE 'SKINS INTHE SAME GAME'

ETHEREUM'S VALUE IS NOT IN COMPUTATION (IT'SSLOW, EXPENSIVE)

IT'S IN BUILDING NEW ECONOMIC ALIGNMENTSCHEMES (DAO) AT ALMOST ZERO COST. FOCUS ONTHIS.

PEOPLE/TALENT

WHO ARE THEY?

HOW MUCH 'SKIN IN THEGAME' THEY HAVE'?

HOW MUCH DO THEYLOSE IF DAO FAILS

PRODUCT

WHAT PRODUCT DOESTHE DAO OFFER?

WHAT IS THE MARKET?

HOW IS IT BETTERTHAN ALTERNATIVES?

COMPETITION

CAN YOU COPY THE MODELEASILY IF SUCCESFUL?

WHAT 'MOATS' DOES THEDAO HAVE TO PROTECT ITFROM COPYING/FORKING

BEFORE YOU INVEST IN A DAO...REMEMBER THAT SAME OLD RULES APPLY