DAOSTACK - Operating System For New Organizational Forms

Greetings Community, in this post I would like to introduce about Daostack project, and for more details let's just go to the following discussion:

DAOstack is an operating system for a new form of organization:
the DAO. Decentralized Autonomous Organizations have captured the imagination of the best minds in the blockchain space, but despite their promise have yet remained an abstract idea. One key point of failure is the lack of solid framework for decentralized blockchain governance. At the base of the DAO stack, Arc is an open, universal framework of smart contracts for decentralized governance and collective value management over the blockchain. Just as HTTP allows the creation and interoperability of web sitesand web applications, DAOstack allows the creation and interoperability of web companies, collaboration appsand DAOs,as wellas thealignment of their interests. The result is a new web of open collaboration, in which collectives can self-organize around shared goals and values, beyond pure economic growth. We believe this will bea critical step in the evolution of society toward a more cooperative and sustainable future.

The Future of Organization
The ability to well-organize and coordinate a large number of individuals is one of the greatest forces (and drivers) of society, which has gone through constant evolution over thousands of years. In this chapter we describe the challenges of the legacy organization today, and a new possible form of web organization: the DAO.

Legacy Organizations
Cooperation of agents increases their efficiency with respect to external competing market forces. This is the basic origin of the company and the reason organizations want to grow. However, coordination of large number of agents is difficult and costly, and that is why organizations cannot grow indefinitely.

When growing, organizations need more rigid structure in place, and thus face a growing challenge to: a) maintain agility with respect to rapidly changing conditions, and b) preserve alignment of interests, trust and engagement among their members. In short, the larger an organization is, the more internal friction it needs to cope with; the smaller it is, the more external competition is predominant. The actual size of a company is generally the sweet spot balancing between these two forces.

Once in a while, the introduction ofa new technology or paradigm shift enables the reduction of coordinational cost, pushing up the scaleand efficiency of organizations to new levels. It triggersatransition in the landscape of work and business, and thereafter a social change too, as was exactly the case with the invention of crowdsourcing and the Internet itself.

The Internet allowed for an open, real-time and peer-to-peer information exchange on a global scale. As such, the Internet media has become more efficiently scalable than traditional media outlets, and has quickly assimilated the latter. However, the Internet by itself does not support open, peer-to-peer exchange of valueand general-purpose coordination, and is thus limited in its potential to power global cooperation.

The Blockchain
Blockchain is the second internet revolution, doing for value and business what the Internet has done for information and media. It allows unprecedented levels of crowd coordination by eliminating altogether the
issues of fault and trust, and consequently forms the technological basis for Decentralized Autonomous Organizations (DAOs). A DAO isa new form of scalable, self-organizing cooperation, that is operated by smart contracts on the blockchain. Many believe that DAOs hold the promise for the future of business and work, but despite a lot of traction in the blockchain community around this subject, a successful governance system and operational basis for DAOs is still missing.

Agencies
The building blocks of DAOs are smart companies, or agencies (we will use those terms interchangeably). An agency is an atomic governance unit that is managed and operated with smart contracts on the blockchain. It has its own token (related to benefits of the company’s resources), its own reputation systems (related to credibility and influence in company matters), and its own governance system (its “bylaws” encoded in smart contracts).

The governance protocol embedded in the smart contract ofan agency can beanything one can come up with. A simple example is a proposal-based governance system, with a yes/no majority vote on proposals needed for
approval and execution (which are one action in smart companies). Proposals might be about token distribution, for example, and votes can be weighted by the voter reputation. We will give a handful of other examples in the next chapter. In a heuristic visualization it could look like this:

HOW The foundations of a thriving DAO ecosystem

DAOstack runs on GEN
GEN is the native token of the DAOstack platform. Basic operations across the DAOstack ecosystem – such as promoting proposals – will require the spending or holding of GEN. GEN will be distributed to contributors of value through the DAOstack framework itself, incentivizing development, promotion and adoption

GEN Distribution