Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...

Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...

Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...

Subscribe to xuanling11

Subscribe to xuanling11
Share Dialog
Share Dialog
<100 subscribers
<100 subscribers

Here is DAO part 6. I drove myself into the rabbit hole and DAO seems like a huge effort of building and designing from scratch of economy, work, team, technology, management, and many more.
TL;DR
There is more to learn than to execute in DAO. Compared to traditional corporations, DAO can improve and become its own type of corporation structure in the future.
What to Focus

DAO is not a solution for all. However, before you dive into DAO, you want to set a clear expectation on what you want to build a team about and what value DAO can provide that traditional corporations cannot. Experience is one aspect to have a DAO to provide but if the value of DAO created is the same as a traditional practice, then DAO may not be necessary even though decentralization sounds wonderful.
Design Value
In DAO, you are creating value. In a traditional business sense, value comes from customers. If customers want something, that is a valuable aspect business needs to focus on. DAO inclines toward the community. Customers are part of the organization. Therefore, DAO is creating value with an experience attached. You will design an experience that tailors down to community wants and needs.
Define Value
In a traditional business sense, defining value comes from your product design process. Part of the input comes from customers and other parts of the input come from broader research. However, whoever had a management role decides on the final product outcome.
In DAO, the value will constantly change based on the growth of the community. The top-down structure to define value will have a negative impact on community engagement. Every community member wants to say about the value and input their voice. Therefore, it is a crucial part to serve the community and get their input into value. It will become a core of the DAO and bond everyone to work together.
Compensation
Defining what is valuable really helps to layout how to compensate your community members. Blur out value will make compensation harder to be fair.
Discuss what you contribute
Before even entering into contributing your time, make sure to discuss with a core team or any lead in the community. Express what you can contribute and ask what they can compensate for. Many DAOs focus on asking members for contributions but lack a system on how to compensate their members. Here are three tiers of compensation that DAO can consider to separate their tasks on:
Contribute as self-inspiration
Community members can start their own tasks to contribute. Sharing news and information about the topic DAO focus can be the first step of contribution.
Contribute as beneficial
Composing members' thoughts and ideas to share in the community can be the next step of contribution. It is feedback on news or information. It starts the momentum of the conversation and possibly dives into a deeper question that DAO tries to solve.
Contribute as task
The answer to the question can become a solution that the community as a whole tries to resolve and accomplish. These then can become a task for members to go into depth research and create tools to resolve problems.
Contribute as feedback
The solution that community members provide may not be perfect at first. Feedback is necessary to continue improving the solution.
Level of Compensation
Once you come up with the level of contribution, you can compensate accordingly. There are many ways to compensate members from honorable title to monetary compensation. Many DAO is lack funding at the early stage, promised compensation may not retain members to contribute sustainably. Therefore, designing an economy to compensate members fairly is another challenge that DAO has to figure out even before recruiting members.
Permission to Permissionless
At the beginning of DAO, the organization may run like a top-down structure due to core members recruiting and limited resources. However, you will need to transit the community into DAO and become a permissionless space for members to freely contribute.
Management to Delegation
You manage DAO at the beginning of the stage because many members are still learning the space. Transition into delegation is a crucial success to becoming a DAO. Delegation is an art rather than a science for people to follow. However, the more delegation, the more efficient that DAO can operate by itself.
Right Information to Right Tools
To transition into a DAO, members will have the ability to use tools and complete tasks by themselves. Right information sharing is the first step. However, core members need to carry members out to use each tool and mentor them to accomplish their tasks.
Poor Insight to Metrics Driven
At the beginning of the DAO, it may be a poor insight. Once more data is collected and contributed, the organization will become more metrics-driven. Skill sets of members will become more concentrated and more specialized. Data will become a more critical part to gauge DAO into their specialty and narrow down their mission.
In Conclusion
There are many areas to focus on and to build because everything is open to discuss and experiment into.
Stay tuned for the next article!

Here is DAO part 6. I drove myself into the rabbit hole and DAO seems like a huge effort of building and designing from scratch of economy, work, team, technology, management, and many more.
TL;DR
There is more to learn than to execute in DAO. Compared to traditional corporations, DAO can improve and become its own type of corporation structure in the future.
What to Focus

DAO is not a solution for all. However, before you dive into DAO, you want to set a clear expectation on what you want to build a team about and what value DAO can provide that traditional corporations cannot. Experience is one aspect to have a DAO to provide but if the value of DAO created is the same as a traditional practice, then DAO may not be necessary even though decentralization sounds wonderful.
Design Value
In DAO, you are creating value. In a traditional business sense, value comes from customers. If customers want something, that is a valuable aspect business needs to focus on. DAO inclines toward the community. Customers are part of the organization. Therefore, DAO is creating value with an experience attached. You will design an experience that tailors down to community wants and needs.
Define Value
In a traditional business sense, defining value comes from your product design process. Part of the input comes from customers and other parts of the input come from broader research. However, whoever had a management role decides on the final product outcome.
In DAO, the value will constantly change based on the growth of the community. The top-down structure to define value will have a negative impact on community engagement. Every community member wants to say about the value and input their voice. Therefore, it is a crucial part to serve the community and get their input into value. It will become a core of the DAO and bond everyone to work together.
Compensation
Defining what is valuable really helps to layout how to compensate your community members. Blur out value will make compensation harder to be fair.
Discuss what you contribute
Before even entering into contributing your time, make sure to discuss with a core team or any lead in the community. Express what you can contribute and ask what they can compensate for. Many DAOs focus on asking members for contributions but lack a system on how to compensate their members. Here are three tiers of compensation that DAO can consider to separate their tasks on:
Contribute as self-inspiration
Community members can start their own tasks to contribute. Sharing news and information about the topic DAO focus can be the first step of contribution.
Contribute as beneficial
Composing members' thoughts and ideas to share in the community can be the next step of contribution. It is feedback on news or information. It starts the momentum of the conversation and possibly dives into a deeper question that DAO tries to solve.
Contribute as task
The answer to the question can become a solution that the community as a whole tries to resolve and accomplish. These then can become a task for members to go into depth research and create tools to resolve problems.
Contribute as feedback
The solution that community members provide may not be perfect at first. Feedback is necessary to continue improving the solution.
Level of Compensation
Once you come up with the level of contribution, you can compensate accordingly. There are many ways to compensate members from honorable title to monetary compensation. Many DAO is lack funding at the early stage, promised compensation may not retain members to contribute sustainably. Therefore, designing an economy to compensate members fairly is another challenge that DAO has to figure out even before recruiting members.
Permission to Permissionless
At the beginning of DAO, the organization may run like a top-down structure due to core members recruiting and limited resources. However, you will need to transit the community into DAO and become a permissionless space for members to freely contribute.
Management to Delegation
You manage DAO at the beginning of the stage because many members are still learning the space. Transition into delegation is a crucial success to becoming a DAO. Delegation is an art rather than a science for people to follow. However, the more delegation, the more efficient that DAO can operate by itself.
Right Information to Right Tools
To transition into a DAO, members will have the ability to use tools and complete tasks by themselves. Right information sharing is the first step. However, core members need to carry members out to use each tool and mentor them to accomplish their tasks.
Poor Insight to Metrics Driven
At the beginning of the DAO, it may be a poor insight. Once more data is collected and contributed, the organization will become more metrics-driven. Skill sets of members will become more concentrated and more specialized. Data will become a more critical part to gauge DAO into their specialty and narrow down their mission.
In Conclusion
There are many areas to focus on and to build because everything is open to discuss and experiment into.
Stay tuned for the next article!
No activity yet