The Decentralized Autonomous Trust concept will enrich Wetonomy and make it a better DAO framework
There’s a growing problem with modern capitalism. Employees are becoming more and more disengaged with their workplaces. This tendency has become evident as generations shift and milеnials grow into the main driving force in the world economy. The main culprit is people don’t have a real stake in the organizations. Workers feel disconnected from the fruits of their work.
Meanwhile, the leitmotif of the 20th century — “Secure a well-paid job and climb the corporate ladder” has already become obsolete. And as the advancing technology changes the world with an accelerating pace, the need grows for a new type of organization that properly aligns the interests of its members. Which leads us to the big question:
How are we going to shape the future of work?
As a technocratic community, we’ve been looking for answers in technology. And we reason that many of the trust issues of legacy corporations could be solved by using contracts, written in code, i.e. smart contracts. That’s why, for the last two years, we’ve been working on a framework for Decentralized Autonomous Organizations (DAO), called Wetonomy.
The Wetonomy framework addresses the employee motivation problem by providing a transparent mechanism for measuring contributions and bridging the added value with fair rewards. Furthermore, Wetonomy’s set of smart contracts provides a holistic solution for running an entire organization. It’s a versatile tool that could work for a range of corporate structures — from a fledgling startup to a large international company.
While Wetonomy utilizes the High-Risk Automated Debt (HRAD) system to reward contributions of capital and labour in an organization, another concept for transfer of value has been developing quickly in parallel — the Decentralized Autonomous Trust (DAT).
What is DAT?
The Decentralized Autonomous Trust is a smart contract that automatically mints, burns and distributes FAIR Securities (FAIRs) using a bonding curve smart contract. An organization can funnel all or part of its income through the DAT to reward investors and thus attract a continuous stream of capital, without exposing the founders to the risk of sacrificing control over their own project.
The positives of the DAT are excellently covered in Thibaud Favre’s original whitepaper of Continuous Organizations, a read we strongly recommend.
Implementing DAT in the Wetonomy framework
We have been exploring the possibility of adding a DAT implementation on Wetonomy for a while. And now we are stepping into action. Here’s why we have concluded that a DAT smart contract would complement and enhance the Wetonomy framework.
Think of an organization as a biological cell.
The cell’s complex internal structure consists of various organelles, all serving different functions. A cytosol liquid acts as a medium that transfers proteins between organelles, i.e. helps them communicate with each other. And then this whole thing is covered by the membrane, who is a very smart pal. It manages the incoming and outgoing substances, being very good at recognizing which ones are vital for the cell and which shouldn’t be allowed in.
Wetonomy provides the framework that autonomously manages all the processes inside the cell. So that’s all the employees (organelles) internal communication, tasks, peer-to-peer rewards, voting on decisions, etc. An analogy of the cytosol could be made with the HRAD mechanism which acts as a medium to keep the employees happy and aligned with the interest of the whole cell.
Then, just like a cell needs the membrane to bring in vital nutrients, a Wetonomy DAO should have a mechanism to attract investments. In this regard, a DAT smart contract would enrich the Wetonomy arsenal of fundraising, providing an alternative cell membrane to the HRAD system. The guaranteed liquidity of DAT solves one of the biggest problems investors have.
In other words, once we’re done with our DAT implementation, an organization using the Wetonomy framework would be able to choose whether to work with HRAD, DAT or a combination of these two. For example, a Wetonomy cell could be organized internally around HRAD and enclosed by a DAT membrane, which brings in nourishing investments.
Get in touch
We are very excited about this opportunity and the Comrade devs are already getting their hands dirty with an implementation of DAT! We intend to roll out updates on our progress (and challenges) along the way.
The best place to stay tuned is the Wetonomy community on Discord, where we also chat about DAOs, DAT, the future of capitalism, etc. You’re welcome to join the conversation!
Originally published at http://blog.wetonomy.com on June 6, 2019.