The TAO of The DAO: One Small Step for Blockchain Systems, But A Giant Leap for Mankind

Abstract

Tao or Dao is the natural order of the universe ([https://en.wikipedia.org/wiki/Tao||Tao, Wikipedia Link]). This intuitive knowing of life cannot be grasped as a concept. Rather, it is known through actual living experience of one's everyday being.

DAOs (Decentralized Autonomous Organizations: [https://en.wikipedia.org/wiki/Decentralized_autonomous_organization||Decentralized Autonomous Organization, Wikipedia Link]) are seen as the way forward for blockchain systems. We draw inspiration from the natural order of the universe, as we know it, and try to incorporate these principles into the DAO, as wish to create it. The simple message that we arrive at is this: our engagement with the DAO has to be one of absolute involvement, just like our experience with the universe has to be. A belief that a DAO is not just an organization but a way of life is necessary to ensure that we can make the most of the fascinating capabilities of the decentralized realm. We propose several mechanisms by which such an attitude can be developed among all the participants and how technological systems can facilitate that.

The topic of the DAO can be a seven hundred part, or more, series of articles. But in this article, we summarize the most essential ingredients for a DAO. The core philosophy we espouse regarding this topic is that we need to have similar principles, and the same group of people in the organization, for all human touch points and to handle the policies for both the Team and the Community. Having such a structure would be a huge first step towards the establishment of a DAO.

To the best of our knowledge every organization thus far, both within the crypto terrain and outside, has viewed employees and clients, including external stakeholders, as two separate entities. The all inclusive approach that we recommend is to recognize the team and community as one group, the human capital. Essentially what this means is that we should not differentiate between the team and community but instead view them simply as different subunits or divisions within the organization. The team and community will include all human (and perhaps, even non-humans at a later stage) actors that are participating in some aspect of the DAO.

It is important to have similar principles, but not the same ones, for all participants. Though, similar to any other organization, there will be different sets of responsibilities and rewards for different departments within the organization. We need to have different incentives, and guidelines, for the many different duties that members of the human capital perform. Surely, such a unique approach might bring conflicts that are inherent when attempting such a radical change. The objective should be to establish this paradigm as an intrinsic part of our culture and revise policies to ensure conflicts are minimized.

Blockchain technology is creating a fascinating landscape where any-one can participate from any-where and at any-time to full-fill almost any-desire. Preparation for the unintended and unwelcome outcomes, by coupling rigorous risk mitigation with continuous innovation, will ensure that this technology fulfills the massive potential it holds. The possibilities are endless.

Keywords: Tao, Dao, human capital, decentralized autonomous organizations, blockchain, universal identity

JEL Classification: D7, D8, I31