Editing Governance (section)

== Transcendental values ==
''Main page: [[Transcendental values]]''

It is important to recognize that even though governance is the obvious force needed to keep an organization coherent and stable, it is not the most important force in this regard. The values and goals of an organization are ultimately more important than the explicit rules for keeping an organization solvent. This effect is particularly pronounced in decentralized organizations: when roles are less specialized and authoritative leadership is less important, members give greater importance to abstract values in maintaining harmony.  

Therefore, it is important to design the system with this reality in mind. Power is determined by the incentive structure engendered by the governance process of the DAO. Whether a DAO merely states their values is less important than how the DAO acts. Thus a DAO must design its reward mechanism to be in harmony with their goals and values. Tokenomics answers how accurate this effort is, objectively.