Blockchain technology has provided us with the tools and infrastructure that was needed to innovate and streamline in every industry out there, and in doing so, it has introduced a number of concepts that would have been downright impossible before this technology came along. DAOs (Decentralized Autonomous Organizations) are one such concept; a DAO is an organization that is powered and run by smart contracts, their data such as financial records and rules and regulations are all stored on blockchains.
The concept of a DAO is full of promise and has captivated many people already, however it lacks certain critical components that currently prevent a DAO from being practical and feasible in the long run. This is where the DAOstack comes in, a blockchain powered operating system that will provide a comprehensive framework that shall make the creation and maintenance of DAOs simpler and more feasible. This solution will fill in all the existing gaps and work on creating an Internet of Work that will allow people to contribute resources, skills, and capital to various projects.
DAOs have a variety of topologies and structures, each of which has their own pros and cons, what makes these structures similar is the fact that they all work on a voting system that basically calculates every party’s voting power (based on the number of tokens they have or their reputation). This voting system enables various parties to take part in the organization’s decision-making process and participate in the organization’s operations.
The DAOstack will also have a similar Voting System that shall be as simple as possible to keep it efficient, resilient, decentralized and scalable. DAOs made through DAOstack will require agents (parties that are contributing to an organization) to submit proposals which shall initiate a decision, these proposals will be voted on with a simple Yes or No. Proposals shall have a time limit after which they will be closed and their acceptance or rejection will be decided based on the number of votes that were submitted before the time limit.
The DAOstack’s voting system will implement a Quiet Ending that will prevent last-minute changes being made to votes so that finalization attacks can be avoided; if significant changes are made to votes just before the proposal closes, the stack shall automatically extend its closing time for an additional day. Since DAO’s are primarily run through decision-making votes, so it shall be expected that DAOstack based DAOs will have a tonne of proposals being submitted all the time, in order to keep the proposal voting system organized and safe from overloading, the DAOstack will make use of an Opening Stack. The opening stack will have a certain number of proposals in it that shall be active, proposals that will not be in this stack shall be queued and will have to wait till they are able to get a spot in the open stack.
The Stack Economy
Tokens are being distributed to contributors of value to the network: builders, early adopters and maintainers of the DApp. On the other side, the usage of the DApp requires the spend of those same tokens. For example, Ether was distributed to founders and builders of the Ethereum blockchain, and is now being distributed to miners that maintain the network.Agencies, DAOs and DApps are all based on circular token economies. The general idea is that tokens are being distributed to contributors of value —for value that is contributed to the network. On the other hand, the same tokens gain benefit from the value created by the network.