DAOSTACK - The toolkit for exponential organizations

One of the biggest disruptions of blockchain technology is the automation of processes and the potential automation of the entire organization. Decentralized autonomous organizations or DAOs are the company of the future - there is no point of failure, no downtime, no need for office or formal employees.

Needs

Historically, when there is a need to coordinate large groups of people and lead them toward collective action, humans rely on top-down hierarchy systems, such as in corporations, governments, and the military. Easy enough to steer the ship when you only have one captain, or small team navigator.
One big problem with top-down hierarchy is that they contain concentrated failure points, because the individual can be subject to bad influence, bad actions, or poor judgment. Also, the interests of some powerful people are often out of alignment with less powerful people, so decision-makers often provide incentives to act against the common good.
An interesting alternative has emerged in the form of a movement toward decentralization, in which peer networks organize themselves to act collectively without such concentrated centers of power. One such type of organization has been known as DAO, or a decentralized autonomous organization.
In DAO, peer networks encode their protocols for decision-making into blockchain, and that depends on smart contracts - usually run on the Ethereum network - to become referees who count and carry out the will of the people.
This is a popular concept because it promises to "eliminate intermediaries" - and the boss, in this case - as well as to avoid centralized funding mechanisms like venture capital that support crowdfunding. Imagine thousands of people working together to solve the world's major problems, in exchange for being distributed according to the value donated, and decisions made through the wisdom of the people. Maybe Facebook or Amazon but owned by the user; hedge funds without any of the above embezzling; or even equivalent to BP or ExxonMobil, driven by people and for people (and the planet).
Until recently, however, DAO has remained largely an abstract idea, not yet in practice except in some limited cases. And the decentralization movement has not yet developed.
It turned out that decentralization poses several major challenges.
Perhaps the greatest is inefficiency. If you vote for everyone, things can get very noisy very quickly, like an annoying neighborhood association meeting, multiplied by a thousand. The more you distribute your decision-making power to the entire organization, the more you risk stifling everyone in the ocean of decision making, making it difficult to reach consensus, or both.
So if you're going to coordinate the crowd effectively, you need technology not just to make proposals and count votes, but also to manage collective attention. You need a way to determine who can make a proposal and how. You need a way to decide which proposals should really get the attention of the electorate - a sort of voting tool about what to choose. And you need a way to determine who should be involved in every decision, according to the reputation or credibility of the subject.
You also want none of these mechanisms to be vulnerable to corruption, which means you do not want the influence to be easy to buy and sell. You want everyone to be given an incentive to act in harmony with the greater good. And you want all these systems to be powerful enough to be upgraded to provide a viable alternative to telecommunications, oil giants, social networks, and so on right now.
To solve this complex problem, we need an elegant and adaptable solution.

Approach
The first principle of designing the DAO pile is not to build a specific protocol or specific application, but rather to build up the soil, the soil in which the entire ecosystem can grow and develop. - DAOstack Architects, Matan Field

When DAOstack originators began to be architectural solutions to decentralized governance, they acknowledged that given the complexity of the problem, the best solutions will emerge only from time to time, especially as the need will vary across all use cases.
So first and foremost, they are designing DAOstack to be non-fixed offerings in decentralized government, but rather as a sandbox for ongoing experiments, where pieces of government infrastructure can be easily mixed and matched for any organization, such as LEGO building blocks or WordPress Templates.
They also want to offer some ways for users to interact with the system, thereby serving everyone's needs from blockchain governance programmers to the most techno-logical DAO participants. And they want to make it easy to create special front-end applications based on the back of the pile as they realize that many use cases will require their own interface.
With all these considerations, the team builds a "stack of DAO" - because the technology itself is often called - from basic, modular to the core, and open source throughout.

Application layer
Many DAOstack users will interact with the DAO stack mainly through Dapps built in Arc.js and Arc.
There may be a Dapp for DAO sports, where fans collectively have teams and direct their actions; others for music services without intermediaries, such as decentralized Spotify; and another for industrial trade organizations. Sapien uses DAOstack to build a social news network, while Menlo builds a platform for funding a decentralized blockchain project, and Cultu.re plans a worldwide peer-to-peer identity and contract system to align with countries and countries.

Alchemy
The first application built on the stack is Alchemy, an intuitive user interface for budgeting and resource allocation for decentralized organizations. With Alchemy, anyone will be able to create DAO in a few clicks, create ERC20 Criteria if desired, and invite others to participate in the decision-making and talent sharing center.
In early Alchemy releases, participants will be able to create and vote on proposals, have automatic funds transfer when the proposal passes, and reward contributors with token and reputation (voting power). Alchemy also includes predictive market functionality, running parallel with the voting apparatus, which will help organizations prioritize important proposals. More about the little prediction feature.
Future road maps for Alchemy include greater customization, integration with other popular collaboration tools, mobile support, and reward systems.

The ArcHives
The ArcHives is a series of shared registries designed to enhance interoperability between DAOs and Dapps using Arc and Arc.js.

The Hive is a list of supply and demand used to improve the distribution of talents and resources across the DAOstack ecosystem.
Mosaic is a DAO registry in an ecosystem, curated by the community.

DAOstack Use Case

1. Collaboration to Produce Results ("Work")
In cases where the goal is to develop or deliver products and services - roughly speaking, decentralized "companies" - decisions that need to be made are often about how to appreciate individual contributions, and how to budget for projects and other purchases. Which projects should be funded? How much would James have to pay for the article, or Sally for the software upgrade? What will be the process for verifying and evaluating the work? Should an organization invest in office space or this, legal support, or a PR firm?Examples include the following:

A film project of 1,000 artists
An open-source software project of 10,000 developers
Climate initiative of 50,000 scientists
A collaborative news network of 100,000 journalists

Soon such an organization would be able to use Alchemy to collectively collect tokens and reputations, find collaborators, and offer bounty to professionals. Or they can create a special Dapp on the stack if it is more suited to their needs.

2. Asset Management
The collective types make decisions primarily about asset management and allocation of funds. Should we invest in this company, or the property? Should we pay this claim? Should we sell the asset?
Examples include the following decentralized version

Venture funds
Insurance network
Charity fund
Pension fund
Collective real estate investment

3. Curation
Curation networks utilize the wisdom of the people to determine the quality of subjective objects. What content should appear in the feed, or newsletter? How reliable is this company? How good is the food in the restaurant?Examples include the following decentralized version:

Restaurant or hotel guide, similar to Yelp or TripAdvisor
Articles or video feeds, similar to social news feeds or Reddit
List of websites, like a social curated Google search

4. All On Top
In practice, many DAOs will include decision making in more than one category. Open source software projects, in addition to rewarding contributors (case 1), may collectively curate which code will be included in each release, or displayed in the bulletin (3). In contrast, social networks, in addition to curative content (3), have a business to run and must pay developers, marketers, legal personnel, and so on (1). And any organization may wish to invest the proceeds from its activities into other businesses (2).