Terms & Conditions

BLOCKS Terms & Conditions

Traditional (permissioned) DOs generally rely on conventional marketing efforts  (coordinated between disparate parties) and depend on investment in developers to  build applications—even when this is done on blockchain architecture. Decisions come  from a system that looks very similar to the typical (hierarchical) corporate structure of  management.

DAOs, on the other hand, make use of open networks; and rely heavily on open source  development, which is generated by communities of individuals who coordinate via  forums and blog posts. Such participants are primarily driven by research and  intellectual curiosity. DAOs that facilitate a high level of engagement from a large  variety of people and initiatives naturally hold higher degrees of self-propagation in  design and direction. Moreover, this model has theoretically higher “bus factors”. That  is: The points of failure / vulnerability are distributed, thus mitigating severe  repercussions. Traditional organizations are subject to central points of weakness,  middlemen, and unaligned stakeholder interests.

DAOs are the most efficient (that is: streamlined and cost-effective) business model  ever conceived. Moreover, they are arguably the most fair. Due to the format of their  governance, they are able to shore up the weaknesses of traditional centralized  businesses; and even overcome the shortcomings of many blockchain projects.  Otherwise sluggish processes can be expedited. DAO tooling like Gnosis Safe enables  pseudonymous groups to pool and manage funds across jurisdictions; and do so within  minutes. The equivalent process to establish a traditional joint bank account could take  months; and in some cases, it wouldn’t be possible for individuals from different  jurisdictions to jointly manage a bank account.

A true DAO has only a single interest to protect: that of the business itself. It requires  no employees or executive managers, thereby providing a service without consideration  of salaries and intermediaries, or even the constraints of haggling over financial  forecasts. Businesses can survive on the most razor-thin margins imaginable, and only  need to cover the cost of existing; nothing more.

DAOs are gaining a lot of steam as more and more groups start launching their own  governance tokens. A variety of off-chain and on-chain tooling continue to advance the  ability for these systems to elegantly distribute ownership and management. These  systems offer the latest modes of human coordination. Consequently, they are blazing  a trail for thousands of governance experiments to run concurrently.

More research needs to be done to further detail the extent to which specific DAOs are  technically and culturally autonomous. It will be instructive to continue analyzing the  difference in technical and cultural decentralization exhibited by projects of a specific  category. Every enterprise will invariably demonstrate some mixture of centralized and  decentralized characteristics throughout their development; so it is important to assess  the virtues / drawbacks of both.

As the Web 3.0 ecosystem continues to develop, the most successful enterprises will learn to implement some form of DAO structure, distributing both coordination and network ownership, and making governance more efficient and fair.

BLOCKS was founded on the beliefs that decentralization and autonomy are the cornerstones for the future of business functions and should be embraced wholly as we move forward.  When BLOCKS DAO LLC was first established, it was done so with the intention that by embracing the DAO structure, the organization and contributors therein would be creating a company with ideal scalability, security, and operability.  In structuring as a DAO LLC, BLOCKS has taken the first and most important step in creating the vision for the future of business.