What do blockchains and DAOs offer that groups need? In short, it’s security, transparent governance, user-friendly software, and lower costs. These features enable ordinary people to band together and leverage their skills and resources, often as part of a global community.
A proof-of-work blockchain like Ergo provides a solid, secure foundation for a DAO. On this foundation, it is possible to build multi-signature wallets, smart contracts and other types of secure software that is necessary for a DAO to work.
For example, a standard task of a DAO is to vote on some course of action. Ideally, a DAO can automate the proposal and voting process, and then, a smart contract can do some action. For instance, that action could be to spend funds from a DAO treasury once the vote is completed.
With a baseline of security, it is possible to create smart contracts for identity, reputation, vesting, profit-sharing, and a whole range of other features that have yet to be imagined.
Security Audits & Open Source
One problem with security guarantees is that the average member of a DAO does not have the technical expertise to create or review a smart contract. So, DAO software needs to be created by a knowledgeable team and be subject to outside review by experts. Furthermore, releasing the code as open source software enables anyone interested to review the DAO code themselves.
Paideia writes their own software, has it reviewed by experts, and all of its code will remain open source. If security is a process, this is an approach that can give DAO members confidence that the DAO software they use is secure.
In a distributed organization, decision-making must be transparent. It is not enough to have secure smart contracts. A DAO also needs to make decisions in a way that members understand and where the decisions made are supported by DAO membership.
One way to make governance more transparent is to develop standards, such as standard governance presets to select from, consistent ways of voting, records that can be reviewed by new members, and so forth. Transparency needs to be consistent, and record keeping can be remain open and consistent by software using a blockchain.
Designing these processes is difficult. They need to be flexible enough to work with different use cases, yet they must also be consistent enough to create and meet the expectations of DAO members.
Paideia’s initial focus is on creating two governance models: optimistic (sometimes referred to as lazy consensus) and simple majority with quorum. Each will share standardized workflows and token management features and lay the groundwork for additional models in future iterations of the Paideia DAO software.
Easy-To-Use, Cost-Effective & Global
Software that is too complex or expensive to use is of limited benefit to anyone. Paideia strives to be easy-to-use. It has an intuitive interface designed for use on a computer or mobile phone. This is important because it puts sophisticated DAO software into the hands of anyone with a cell phone.
One of the reasons to build Paideia on the Ergo blockchain is that transaction costs are low. A DAO software suite on many other blockchains is often prohibitively expensive for ordinary people. Paideia is attempting to broaden the market. With a lower barrier to entry and more accessibility, DAOs become more useful. It allows groups to form that would not have been able to work together in the past.
One of the things that make DAOs such a powerful tool is it enables people with common interests to work toward common goals. As much as the Internet has changed the way people communicate, DAOs will change the way groups of people coordinate their skills and resources, at scales that range from a group of friends to global communities.
Paideia is working on a complete software solution for DAO management and participation. With the security of the Ergo blockchain and transparent governance (packaged in an easy to use, cost-effective software-suite accessible by anyone with a cell phone around the world), Paideia will make DAO software, and its advantages, available to billions of people.