It's kind of weird presenting this at a (central) conference for certification (by a central authority), but how do we decentralize the organizations that are decentralizing our currencies, apps, and, well, organizations? Whether it's a blockchain like Ethereum, your startup, or an organization like this conference, decisions have to be made and funds have to be managed somehow, preferably fairly and without single-point-of-failure. I (attempt to) collect all the various solutions that exist and summarize them, and combine all of them into a working solution.
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First of all, what is decentralization?
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basically
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specifically lack of centralized politics, architecture, logic…
by “no” we mean every
Are blockchains 1) politically 2) architecturally 3) logically decentralized?
(answer is in the Opolis off-white-paper)
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tends to manifest as
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DAICOs are something between a DAO and an ICO
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the blockchain that started it all: Bitcoin (2009)
(cryptocurrency started in 1998)
open source != decentralized
Is Bitcoin a DAO?
What makes Bitcoin (including all its soft/hard forks) fully decentralized is: users decide which version to use
You can think of all the blockchains as hard forks of each other (cryptocurrency as a hard fork of fiat)
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1st line of the Tao Te Ching
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Was started in response to the organization problem among blockchain orgs
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How do we decide how we make decisions?
Democracy is ~300 years old, we’re still using today
What’s wrong with this picture
Tyranny of the majority
Liken to Web1.0 (commercial only)
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Upgrade to digital democracy
Web2.0 is about individuals, social media, startups, etc.
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Web3
What’s it gonna look like? So far…
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The mathematical proof is not so important as the fact that deterministic voting schemes 1) aren’t continuous: require voting at set time set location 2) can’t satisfy all types of voters: ties in preferences, want all proposals to proceed simultaneously, none of the above, changing preferences, etc. 3) require enforcement by physical means
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1p1v (1 person 1 vote), rank voting, are similar
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Each person gets equal number of voice tokens
For each proposal: N^2 voice tokens = N votes
100 tokens = (10,0,0,0) or (5,5,5,5) or (1,1,…,1)…
Is this manipulable?
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When do policies become law and payments happen?
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To achieve non-manipulability, we must think outside the definition of deterministic voting schemes as defined by Gibbard.
Inspired by approval voting/quadratic voting/futarchy, these solutions: 1) are continuous 2) satisfy all voters 3) don’t require enforcement.
Can combine with Merit Signaling resource allocation for decision-making and funding.
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Ideas are great in theory, but you can’t know for sure until you test them. Currently working on implementation for Disclosure Exchange.
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financing decentralization
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It is totally possible to have an economy without inflation if goods/$ = 1/ ($/goods)
Current: not sustainable
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Goal: sustainability
What makes crypto different from fiat is…
Thanks to the work of various individuals and institutions, we are living in an increasingly transparent world :)
Merit: at any given time, any given individual has different merit in different areas
(it does NOT mean we label one person as "meritorious," another as "bad")
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Aragon implemented
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Homogeneous auction: bidders’ values are i.i.d.
Sealed-bid second-price auction optimizes resource allocation:
- Pareto-optimal: the winner is the highest valuer
- Maximize earnings by bidding exactly the value of the object to oneself
- No costly (time, resources) market appraisal and manipulation
- As long as the highest bidder and 2nd highest price are published transparently, and the seller and top bidder and 2nd highest bidder don’t collude to set the price to the 3rd highest bid
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Inspired by mechanism design and conviction voting
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Microsoft bundled IE during the browser wars, which the US govt deemed monopolistic and unsuccessfully tried to prohibit
Compare to today’s copyright and monopoly disputes, and what they’ve actually done for rights and innovation
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Q: What if projects conflict?
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applies to software licenses not for land usage
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A: There is always a 3rd choice (1. house only 2. highway only 3. house in highway, highway in house, none of the above)
And in a decentralized world, anyone can propose anything at anytime
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We covered