cover image by flyerdiaries.com
DAO stands for decentralized autonomous organization. It’s a new kind of organization that is native to the internet. DAO’s make it easier to run companies that don’t necessarily have hierarchies of power, or they can have more diverse and subtle power relationships. They decentralize power – meaning that decisions and resource allocation can happen among customizable sets of people, peer-to-peer, without having to funnel decisions and money up a hierarchy of people that make more money or otherwise extract value. DAO’s can also be called “smart organizations”.
The technology that powers DAO’s – blockchains – also make it possible to do things like “liquid democracy“, which theoretically can achieve more deeply informed and equitably distributed decision making. Peer-to-peer democracy is possible now! Think about that. Soon you’ll be able to do it through Bloom Network.
Anyone can start a DAO, and with a platform like Aragon or other DAO applications, it literally takes 30 seconds, compared to weeks or months if one sets up an organization through their state. Yes, today there are applications on the internet that allow you to instantly start an organization to collaborate with people locally or internationally. We need those! Now.
Bloom Network is really excited about DAO’s because they make it possible for us to run our collective as an international cooperative, that is truly owned by all our members and can freely self organize, without risking the kinds of power abuse and siphoning of value that are endemic to most of our older paradigm institutions. Bloom Network is a strange beast in that we are actually more like a connective tissue for many companies to collaborate through – DAO’s provide more flexibility to have collaborative business models. We are doing a governance hackathon now and at our conference, Pollination this August to set it all up and work through the intricacies. Please join us! Or keep reading to learn more about DAO’s and digital currency.
One of the technologies behind DAO’s is called smart contracts. Those can be coded so that, for example, in an activist organization, three of five people have to sign off on a transaction in order to issue funds to a specific person or for a specific project. DAO’s eliminate some of the administrative load of running an organization. Once a vote passes that approves, say $30,000 being allocated to an organization to build an urban food forest, that money is automatically issued to the organization and no human has to administer paperwork for that to happen. This all also puts in place some safeguards for collaborating with people you might not have yet established deep trust with – this will soon be important with more large-scale disaster response efforts.
Another thing DAO’s make it easier to do is work as an international organization. Instead of paying for currency exchange and wire fees, and waiting several days for transactions to clear, DAO’s run on the blockchain and cryptocurrency. You can nearly instantly send money from one country to another, in pure math, and not have to run the transaction through the third party of a bank with all its overhead costs and siphoning of some value. This isn’t just exciting for some “buck the system” reason; it is absolutely essential for the large-scale mobilizations that will need to happen increasingly often in the coming years due to climate change, migration, and large-scale demand for decentralized, localized autonomy. The reason local autonomy is important, is that part of resilience to weather anomalies, and part of restabilizing our planet’s carbon cycle, AND having less extreme inequality, is making local changes to the ways we do transportation, watershed repair, community forestry and agriculture. DAO’s make the legal landscape of this much more streamlined, fluid and fast. We think it’s also going to make it easier for large-scale finance institutions to work with these smaller fast-moving community groups. Our Bloom Network crew wants to help people get familiar with and orient to this new governance operating system that is better designed to handle the 21st century’s challenges.
Cryptocurrency software is built out enough now that an average person can use it easily enough. We’re hosting an introduction to getting started with cryptocurrency this Monday U.S.-time if you’d like to get a walk through. It’s much easier if someone shows you step by step and you do it with them. There are more and more services built on the blockchain so you can use cryptocurrency to purchase things and otherwise transact, without having to exchange the money back into your country’s currency. We could go farther down the rabbit hole with you, but we’ll stop here for now. Stay tuned for more updates and opportunities to participate.