S3 E6 | DAO Decentralization Thesis & Artificial Intelligence w/nintynick

Common mistakes or roadblocks with prog decentralization - Early team finds it hard to part with excess authority. Not necessarily for bad reasons. Taking hands off wheel generates fear - Not finding the right people for the dao. DAOs can be big, and they don’t have enough good people to do everything

The intersection of AI and DAOs - Agent-based modeling is an area of ai research - Similar to governance mapping (which approaches this problem from the realm of economics). - Look at all of the agents in a system and what their capacities and goals are - Use massive simulations to understand the ways that participants could act - Or teach them how... See more

Dao efficiency parity forecast. The flipenning of DAOs creating more value than tradcos - Tradcos learn linearly - DAOs have strong network effects, both internally but also learning from each other. This creates an exponential learning rate.- We're still early in DAOs. Figuring stuff out - Bitcoin is a dao - We’ve learned about Governance tokens -... See more

DAOs can’t yet do the same complex things as big companies, like managing complex supply chains

How to approach decentralization for a tradco - First map the governance surface: - Who are all stakeholders, what are their authorities - Then figure out what is desired state. - Then doing one authority delegation at a time, and then building meta process around assessing, choosing, and decentralizing specific authorities in the community.

When does it make sense for a tradco to decentralize? - It’s very hard. Need a v good reason. - Why would you want to: - Decentralize governance - Decentralize ownership and upside - Can potentially make product or protocol better because you’re getting direct feedback

What role will humans have in this future? - Perhaps when conflict arises - There will be 80/20 for all types of work - 80% of governance decisions will be automated. These will be the non-controversial decisions - We will each likely have personal AIs that represent us in each of the communities that we are a part of - 20% of decisions will get tr... See more

Are DAOs bad at building products? - Product teams need continuity and shared context - We need more tools that can coordinate things like product work.

Progressive decentralization is not enough - continuous decentralization is important. Because even in true DAOs, there will always be forces that tend towards centralization