Blog: DAOstack - The toolkit for exponential organizations

DAOstack is an operating system for a new type of organization.
DAO. Decentralized governments have envisioned the best minds in the block chain space. But despite the promise, it still remains an abstract idea. One key failure point is that there is no robust framework for decentralized block-chain governance. Arc, the foundation of the DAO stack, is an open and universal framework for smart contracts for distributed management and collective value management of block chains. Just as HTTP allows the creation and interoperability of Web sites and Web applications, DAOstack allows for the creation and interoperability of web companies, collaborative applications and DAOs and permits alignment of interests. As a result, the community has created a new web of open collaboration that can go beyond pure economic growth and organize itself around common goals and values. We believe this will be an important step in the evolution of society towards a more cooperative and sustainable future.

THE FUTURE OF THE ORGANIZATION The
ability to organize and coordinate a large number of individuals is one of the greatest forces (and momentum) of a society that has evolved constantly for thousands of years. This chapter discusses the problems of today's legacy organizations and DAO, a new possible form of web organization.

The cooperation of heritage agents increases efficiency in relation to external competitive market forces. This is the root of the company and that's why we want the organization to grow. However, coordinating a large number of agents is difficult and costly, and is why organizations can not grow indefinitely.

Organizations need to be more resilient at the time of growth, so they must be agile in changing situations and maintain b) Membership, trust and participation. In short, the larger the organization, the more internal friction you have to deal with. The smaller the better, the higher the external competition. In general, the actual size of the company will maintain a good balance between these two forces.

Occasional introductions of new technologies or paradigm shifts can help reduce the cost of tuning to bring your organization's size and efficiency to a new level. Like the invention of crowdsourcing and the Internet itself, it triggers changes in business and business environments, and subsequent social change.

The Internet allowed open, real-time, peer-to-peer information exchange around the world. As such, Internet media has become more scalable and faster to assemble than existing media. However, the Internet itself is open and does not support peer-to-peer exchange and universal coordination, so the potential for international cooperation is limited.

Block Chain
Blockchain is the second Internet revolution for businesses with the value the Internet has done for information and the media. Enables unprecedented levels of crowd coordination.
As a result, it forms the technical basis for decentralized local governments (DAOs). DAO is a new type of extensible, self-organizing collaboration, and operates through clever contracts in the block chain. Many people think that DAO has kept the promise of the future of business and business, but the successful governance system and operational foundation of DAO are still lacking, despite the interest in the block-chain community related to this topic.

The
components of an agency DAO are smart companies or agencies (we will use those terms interchangeably). An agency is an atomic management unit that is managed and operated on a wise agreement in a block chain. Its own token (related to the benefits of company resources), its own reputation system (related to the credibility and impact of company issues), and its own management system ("Ordinance" encoded with smart contracts).

No matter how you think about the governance protocol in the agency's smart contract. A simple example is a proposal-based governance system that requires a yes / no number of proposals.
Approval and enforcement (one action in a smart company) For example, a proposal may be about token distribution, and voting can be weighted by voter reputation. We will present some other examples in the next chapter. In an empirical visualization, you might look like this: