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==== DAOstack case study ==== Similarly to DGF: “DAOstack’s governance mechanism, described in detail in their whitepaper (DAOstack, 2018), is called “Holographic Consensus” and combines voting, staking, and reputation. The ideal DAO is defined as “an entity that not only lives on the Internet and exists autonomously but also heavily relies on hiring individuals to perform certain tasks that the automaton itself cannot do” (Buterin, 2014). Humans are on the outside, with coordination taking place automatically from the inside by an algorithm. The essential concept is to program the required rules and decision-making of an organization into code on a blockchain, with the idea that it will minimize the need for governing roles” This seems important too: “The Genesis DAO is a good example of a unique trait common to many DAOs, namely, that they comprise highly motivated groups that have formed around a set of ideas about governance, rather than governance being a means in order to achieve some shared mission. In other words, it was tool-centric and focused on one main action: allocating funds to proposals. It is unusual for people who are strangers to start making financial decisions together immediately without having time to develop coherence and trust. And this was in fact the very promise of projects like the Genesis DAO: that the technology would bypass the need to develop trusted relationships, meaning thousands of people would be able to coalesce around objectives, take actions, and even spend money together as a group.” This part seems related to [https://daogovernance.slack.com/archives/C03NUBD2279/p1686246912296819 this question] on Slack “The fact that decisions are executed automatically, no matter whether conversation takes place or not, generally had the effect of discouraging it. Instead, it was all too easy to disengage or disappear when dissensus arose. Low proportional voter participation led to much speculation about what a “no vote” meant. Were those not voting abstaining because they had no opinion or no time? Had they registered, left, and never come back? Were they silently disagreeing, or already left because of a diverging opinion? Apart from engaging with the group on other communication channels, there was no way of knowing whether silence meant silent agreement or silent dissent. This dynamic led to a stagnant feeling in the group, hindering it from collectively learning and working through issues as they arose.” They then detail how governance moved off chain and isn’t actually available on the record at all as a result.
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