J2 PAIN 06 Matan Field and Adam Levi, The DAO Stack

hi everyone my name is Martin and I'm pretty excited to tell you about the Dallas Tech project I let some people take their seats so in the meanwhile let me just tell you that this is a result of four years of research and development and finally I think we are ready to give birth to that product so the name obviously gives the way right it's an operational stock for the AOS Saint Reznor most organizations but more more generally more broadly it's an operating system for collective intelligence ok so let me give you some background about the problem like why why we're doing that so the fear or the company or the organization is orientable but sub scalable and let me define that so basically the firm is an economical tool it's a set up to align the interests of many agents many actors around a shared goal or shared mission so that's why I mean by orientable like once you have that set up you can orient you can drive that force toward any different goal or mission so it's orientable however it's sub scalable which means that when you grow the organization when you grow the structure it becomes less and less effective less less effective per person so in that say that sense it's scalable sub linearly so I call it sub scalable now the free market is another way to coordinate large number of people and by the way every for the rest of my talk I will only consider large number of people so when I say organization I mean large organizations so all organization on the planet are becoming less and less effective all large organization the planning become less less effective when they grow but however free markets are just the opposite they're super scalable free market networks they become more effective as they grow but on the other hand free market is not non-orientable so you cannot drive the free market to accomplish certain mission it just grows right so with these two definition I will define now the Dow so I know that right now in a space Dow is is used very liberally and in a very wide area of instances so I will I will have my little definition of Dow so I will define the doubt to be this new form of human association which is both orientable it can be driven toward to achieve certain missions but is also super scalable it's actually the first organization that becomes more effective when it grows rather than less so now the outcome of because of being super scalable is that it hits an exponential growth trajectory so you know it's effective so it grows but then it's more effective so it grows faster and it more effectively grow faster and so on so for suits it hits an exponential growth trajectory and basically eats up the entire container until it reaches the boundaries and then it saturates so that's the famous s-curve that any network effect you know structure goes so does tuck enables global networks to self organize around shared goals and joint action combining the scale and efficiency of the largest markets with the alignment and coherence of the smallest theorem so this is the this is the goal so let me give you briefly I mean I'm pretty sure you're familiar with that but briefly some use cases so basically any any sort of applications application or the centrosomes organization the error witnessed can fall under this categorization it's either a basically an instance of collaboration so they made thousands of open-source developers may be millions of open-source developers cooperating around shared missions may be Wikipedia editors and so on so forth so collaboration asset management means that the decision in that organization is about a funneling of asset it can be a port portfolio network it can be a pension fund or the central insurance Network curation of course well we're all familiar with creation Google is the creation engine for websites Trip Advisor's booking and Yelp the problem with today's crowd curation is that the most important value contributor to the business cycle which is the curators is kept outside a business cycle and that's why the I would say the capacity curation capacity is very low relatively so this is a new stage of curation where you have gigantic networks of curators that are cooperating to create objects but also being compensated back with the value that they're creating and forth in the marketplace example which is a peer-to-peer marketplace it can be ecommerce but it can also be right sharing now the market base is actually the only only category that doesn't require a collective decision-making engine although it can be enhanced with one so of course the our stack is OP is powered by a theorem and basically it's ready to go on a may net this months so I'll show you a demo of the first application on the stack that he's now deployed on the Cova network and we'll have it on the may net in the next few weeks so it's a sort of like prior VP stage so the dow escaped the landscape of dowse so what does it mean as I said like every exponential organization if when it hits the exponential trajectory it just grows to infinity but then a lot of other instances instantiation of that are occurring either or with competitive competition on different value systems on the same domain or other domains so that basic creates an explosion yet another campaign explosion of those and then you create an ecosystem and there will be a strong emphasis about the inter probability of those dolls in that ecosystem so a word about complex system there is no way to build a complex system there is no such thing so there is no way to build the echo system or allow no more than there is a way to build a complex system what you can do is that you can design a complex system by design building its elements then engineering its dynamics setting up for evolution and then giving a good conditions that's if you if you make a job that three points right you create an ecosystem or a complex generally complex system so if we take that into the Dow escape we need the elements so actually the Dow escape letters the building blocks the Lego blocks for building dowels and building ecosystem of dowels then setting up for evolution for dynamics between elements dynamics between Dow so inter probability of dowels and finally initial condition so we wanted to achieve super scalable organizations that will require superscalar governance system so governed system that can process more and more decisions per number of people as they grow the number of people which is just the opposite from any decision making engine engine that ever was invented so super scalable governance system will be required to be the initial conditions so let's start with a dowel stock ladders so arc is a modular adaptive and upgradable governance framework on top of the etherium blockchain and that's basically the Taoist applet dowel stock a Dao escape letters so this is the atomic unit governance we call it smart agency which is basically a bunch of agents of actors interacting under smart contracts are actually a quite quite large bundle of smart contracts but under set of rules and this is how we think about those so it's sort of like mesh networks or smart engine season and this is just a caricature but probably way beyond that much more complex so let me tell you a little bit about the arc framework and the smart agency that you can create with them so this again this is atomic unit of governance basically every element that you're seeing in the in the image is a smart contract so every every governance system can be can be divided into the do's and don'ts right so the do's is basically if you know people say such and such then the collective will do such and such and in Don's is no matter what happens no matter what people say will never do such and such okay so the do's for example it's not let's say even an example if 50 percent of reputation hall vote to approve a transaction of tokens then the transaction is being executed also by the way token sale is also goes under this category if eater comes into this address then print token and send it back right and the doors can be for example no matter what happened these governance units will not print over 1 million tokens or nobody what happens these governing unit will not spend more than one thousand if they're a month and note that the globe opens we call that globe constraint the previous one by the way we call governance schemes and note that the global constraints also contain the condition to change the global constraints so for example I can be AG local strange saying nobody what happens this this governance unit will not pre will not spend over 1,000 Eater a month and only governs six only governs scheme number eight can change me and maybe the government scheme number eight requires 80 percent of reputation holders for approval okay so you see in this way every possible governance system can be coded into this framework but more so also the rules to change the rules are part of the rules and then the actors so the two top contracts is the token distributor and reputation or voting power or influence distributor so there are the internal actors right they are distributing the internal tokens and reputation of this agency and then there is the Avatar which is the external external an actor so basically the face of that unit in the world that avatar can do basically anything that can be done on the blockchain it can vote as a single agent so the whole unit the whole agency can vote as a single agent inside another another agency you can send transactions funds and well basically can call any function under any contract on the blockchain so it's the face of the array of the agency finally the controller which controls the actor and dominated by the you know by the governance schemes and confined to the global constraints note that there is like three dots at the bottom which are three special functions that the controller can also trigger one of them is changing the list of governance schemes that are subscribed there are basically allow allowed to interact with the controller so basically registering new govern scheme or unregistering an old one and the second st. the same for global constraints and finally the third one is transferring the ownership of the country so the controller is the sole owners owner of it of the actors and the third one is basic transferring that ownership to a new contract potentially a new controller which basically means that this function is upgrading the entire system so the whole thing both the protocol level and the technology is fully upgradeable and finally reverse allottee means that each of the white contract that you see over there is basically universal in a sense if you not you don't need to redeploy it every time you are deploying a new agency so the only thing you need to redeploy is the tokens reputations and avatars so in that sense this these modules are are serving as the governance as a service sort of thing so maybe just before going on just let me let me emphasize that the arc arc contains the architecture for this like this framework but also contains the library like open library of modules with which anyone can fix their own organization so in that sense it's kind of like WordPress for organization just as in WordPress you can you know pick different modules and plugins and make your own website here you can pick different modules and plugins and make your own organization and if and then if you're if you're missing some protocol you can just build a new module and then everyone can join even a larger library so the second point was about interoperability of dows and for that we have enhanced arc towards the full dau stack so this is the dau stack so at the bottom of course there is this lily frame on kuchi called arc and then there are shared registries that are supporting interoperability of dissenters applications of virus interfaces which we call archives it can be the registry that maps by the way these are curated registries so they can basically curate for example entire set of modules governance modules or they can curate the entire set of agencies that were created with a flat form or it can also be just a registry for in for like inter probability interred up messaging for example or in the app requests so different interface can can interact with each other and universally and by that creating a larger Network effect so these are the archives and then the ArcGIS is it's basically an API layer it's a library over web 3 which which kind of like bridges solidity to JavaScript but also make it higher level so that like it make it very easy for front-end developers to develop and integrate their collaborative apps to the stack without understanding anything about the blockchain but also without us telling the even the architecture of arc like you don't need to call different contracts in different order you can just with high-level command if you can create in configure organization you can participate the vote make proposals and anything that can be done on the arc framework and the result of that is is is you know a variety of applications that can integrate and interoperate with each other the Dubs and we've developed one of them that I'll show you in a moment which we call alchemy with which you can now open more and more smart agencies and then cloud or mesh networks of those agencies with shared tokens economy basically form those and of course then it would be the question but how do we make them super scalable right so we'll answer that in a moment but before that let me just show you a quick really quick demo of alchemy so this is the last version deployed on the Cova network let's see if the internet permits us if not I have like well I have a video of a slightly older version let's see so the feature to open right now Dow is disabled so we just see the Dow exists there so let's enter here this is the genisis now this is actually the genesis that will be the first Dow that is will be deployed this months over alchemy which we actually the Dow that is supporting the dowser project with this gent oaken so you can see there are like a open proposal over here so the proposal over here downstairs let me see if it works yeah so that are these are the regular proposal so they require majority of reputation holders in order to be executed sorry Thanks yeah yeah so the the the proposals downstairs are opposed they need absolute majority in order to be executed and then you can for example you can vote let's vote on this proposal over here build a plant weed it Burning Man now we're submitting it playing us Freight so we're just not voting it so the special thing in of this protocol and I'll just mention it in a moment and then I'll have my second talk tomorrow that will expand about it but that's what that's what makes this integral the centralized governance work at scale is that you can also there is an additional layer on top of the governance layer which is a prediction there so you can also predict anyone actually not from within the Dow anyone could come and predict whether certain proposal will pass or fail so let's give a prediction over here the proposal will pass and let's pay the guys for it so once enough predictions are predicting that they propose a certain proposal is going to pass I think there is another transaction here then then that that proposal is being basically being boosted which means that is open for finite time shorter fine at a time and then the end of that time period the decision is being executed irrespectively if there is irrespective of quorum basically so if the majority of the voters not all the rotation holders if majority of voters say yes it being executed if they say no it's being failed and that's like the the critical part of the holographic consensus which I will expand about tomorrow yeah so well let me not get in too much details here but you can also proposal of course and all that so let's with that let me go back over here so the the last piece of this talk is basically mentioning holographic sensors is just a teaser for tomorrow and again the idea here is how do you make well super scalable governance system so governance system that can process more and more decisions per person when it goes up so firstly in again these are the two last slides of this talk is kind of like the two first slides of the next talk not exactly but just just to have something in mind so what's the problem why it's so hard why white was never done yet the problem is that there is a core tension in any centralized system there is a core tension between resilience and scale so if I need to sum it up in one sentence if you're demanding if you're acquiring four too much of the collective attention for each and every proposals then clearly you are not scalable or definitely not definitely not super scalable and secondly if you're demanding for too little collective attention for each and every proposals you are potentially not resilient to fold the behavior and potentially even both you can be the same time not resilient and not scalable so the way to go about this - basically way to solve this tension is and we call that orographic consensus is by allowing small groups of people so that's that's what we're doing with a relative majority and the boosting period allowing small group of people's make making decisions on behalf of the larger majority but in a way that is critically ensured to be in alignment basic what we're basically what we are doing is that if if there is a mismatch between a status quo of a proposal and what people believe is the truth of the DAO you know the outcome that I will vote on if everyone will look at it then there is there is a potential profit to be made by signaling that mismatch and that signaling layer is being done with basically the staking layer that I mentioned before sticking against of for proposal and that's that's what we've been that we that is done with the Ghent oaken's of the project yeah so with that a you know any questions thank you [Applause] the mechanisms for ensuring that people are not doing bad things to the majority sure I mean I will get into much more data tomorrow if you come at 12:00 so I'll give half an hour just about the full protocol and the logic behind it but again basically the idea is that only if enough people are predicting their proposal is going to pass only then it's being boosted and you can ensure by that is that there is so basically your crypto economically monetizing the possible mismatches so you can make profit by signaling a mismatch but again I'll give much more that much more details about it tomorrow completely ruin the talk yeah that's like that's a recurring question so yeah so I don't think we are any anywhere different from argon in our vision also colony Chucky's over there and then there is harbor and they're not I think big big number but a growing number of players that are having the same sharing the same vision and also we are wearing full interaction with each other I think the differences are eventually in the details like eventually you'll just get different architectures completely different textures so for example our unique element is the you know from the beginning we had a very echo systemic approach so we haven't built like an application and then protocol and then build a platform we we started from a platform like a fully general platform and when we finished that we've built a protocol and then we finished that with build application so it's I think we went just the other direction from all other projects and we'll see the result if it's better or not but it doesn't doesn't really matter we're not like it's not for me it's not a competition we are doing I think you know we have our own design which is more bottom-up I would say more ecosystemic the second I think big differentiator is the whole graphic content so again as far as I mean as I said in the beginning I think those being used liberally but what I call Dow is this super scalable organization and I think that's the first protocol it actually achieves that it potentially so that I think these are the two differentiators maybe another you know a third one is that again I gave it I saw I showed the image over there again a lot of dolls that are being mentioned are more looking at something like that of the form of this where the Dow I mean and we've designed the architecture in order to facilitate this kind of dolls so it's maybe it's another very differentiator any more questions okay thank you then oh well kissing sorry yeah just I just love to hear you share some of your daydreams about where this stuff might go if we kind of cast your mind 50 years forward what does the world look like I know it's all crazy and it's a complex system and things like that but if you're you're entertaining the ideas here that could challenge the nation-state I'm just curious how you think about it sure so I don't think we need to go that far by the way I think 5 10 15 years is down the road this is totally phase changing so basically I think you can you can see how these things evolved in history for different cases so whenever he created a you know much more efficient like multiplicative economy rather than a additive economy or exponential economy rather than depictive economy or super scalable structures rather than sub squares with structures so the internet for example is an example right so basically once you created that structure the whole domain of this information distribution completely shifted right it ate the entire domain and swallowed all legacy organizations that exist before I think that the same thing will happen here for the domain of cooperation so any coordination any work but also as I said like the central insurance like once it's a phase transition it's not I mean of course it's a process but it faces its position this process that finally that suddenly accelerate exponentially fast that's what we create here once the MVP of a DA will be created it will explain and explain it it will run exponentially fast initially explain looks linearly but there is after some point there is like this me and then goes and that's what will happen and they and the outcome of that is that the entire domain of cooperation of work of structures of society basically will shift into a completely new form so so just as today we are you know dominated by corporations and governments I think this is completely going to shift to domination by networks by the centrist networks that actually run the entire corner me from bottom to top so how that looks like we can we can we can spend like a an hour about that yeah so yeah that's a great question so you should have asked the same question what blockchain right do you think that the elite will allow this transition and no they don't that's true and that's what's that's what's right happening these days yeah okay we're running out of time so we'll do that conversation later thank you very much [Applause]