How could you set up a Decentralized Autonomous Organization to run an online business? What types of contracts would be used? What type of payment systems would be involved? How would you attract people (or AI!) to provide labor for this enterprise?
A challenge from @jjbitters got me thinking about using a DAO to manage an online music collective.
1. First, define your mission and values
For instance, my hypothetical music collective, "Jazz Co-op", would be dedicated to helping independent musicians make money, find fans, and discover new talent. The mission would be to help the entire jazz community thrive.2. Define an AI labor force that is incentivized to do the following
- promote great musicians on social media - create podcasts about great musicians - write articles about great musicians - etc.3. Use a token to reward people for doing these tasks
4. A few ways you could implement this (in order of complexity):
A) Use a smart contract that rewards people who do these tasks with tokens.B) Have a DAO built on top of Ethereum but not use ETH as the token but another token that is pegged to ETH so it doesn't fluctuate in value.C) Have a governance system where token holders vote on what tasks get done and how many tokens are rewarded for each taskD) Have AI algorithms manage the budgeting of all tokens so they are spent optimallyE) Have the ability for any musician or fan to buy tokens back from other token holders if they want their tokens backF) have a secondary market where people can buy and sell tokens (this would also benefit from an active secondary market).5. Note that this is different than an ICO because...
In this case, there would be no "company" per se. The co-op (or DAO) would exist purely on the blockchain with no central management costs. The only costs would be maintaining servers and paying for gas fees when transactions occur within the ecosystem (note: gas fees are paid by users who initiate transactions so there's no cost to the DAO).6. How could you implement this? What contracts would you use?
The easiest way is probably using Aragon or District0x or one of the other first generation decentralized organizations. There's also companies like Colony or Inkrypt that focus specifically on implementing decentralized organizations using Ethereum.
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