Editing Talk:DGF comparisons (section)

===Design Governance===

They describe what they call a Design Governance approach to blockchain protocols, which provides the context in which DAOstack (and DGF?) were developed, as a reaction to failures of Bitcoin and Ethereum on the governance front:

“A “second wave” of DAOs continued to work on governance, now as a problem of incentive design. Incentives would be used as a design option for creating bespoke forms of social and economic organization. Drawing on game theory, incentives would be arranged, assuming people would respond in predictable ways, making individual behaviors align with an overall design objective”

The note that this approach

repeats many of the oft-criticized assumptions [of market economics], not least that people are (or have to perform as) isolated economically rational actors who react to incentives in a predictable manner”

And

“that imposed rules can to a large degree be replaced with incentive designs that will produce predictable behavioral outcomes.”