# jzhao.xyz


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# DAO

Last updated February 15, 2022

Communities organized around a shared set of rules enforced on the blockchain through a smart contract.

DAOs give us structured ways to collect, invest, and build together.

Inherently transparent, every aspect of the org is public.

The most infamous DAO, The DAO, was a decentralized VC fund. Eventually raised $150M but had$60M hacked, leaving a negative impression/skepticism around DAOs for a while.

Stable employment is possible through DAOs, Empty Set Dollar DAO is paying a \$180k salary to their community manager

All members can still be anonymous and built reputations attached to their pseudonym rather than real identity, hopefully helps to create a more even playing field

## # Potential Issues

• How does this work for people who want to keep things under NDA/keep IP safe?
• Not everything can be codified, what happens in vaugely defined/legal gray zones?
• Often times no legal protections outside the rules governed by the smart contracts facilitating the DAO
• Tragedy of the Commons: how do we ensure all members of the DAO have stake and participate?
• How/can we enforce who joins a DAO? Would this lead to lower quality discussion and higher noise due to lack of value alignment and group limits?