NEAR NEARCON | 2021, 9 Nov 2021

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From YouTube: NEARVERSE - Day 1 - Trevor Clarke W/ Cron.cat & Pingbox.app

Description

Talk: "DAO+S: Bringing sustainability and automation to the decentralized organization"

Blurb: "Businesses of the future will rely on decentralized entities that govern, manage and operate autonomously. What business models will be used for sustaining an autonomous entity? How can you get started today?"

Workshop: "Automate Anything Using Croncat"

Blurb: "A workshop for no-code and minimal code experience on how to do things like weekly transfers, auto-yield farming & more using https://cron.cat. You will walk away with practical experience on how to unlock decentralized automation for your NEAR apps."

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Hello, my name is trevor clark, I'm one of the founders of cronkite, built on near protocol, I'm here to talk about dao's doubts with sustainability and autonomy.

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We're going to look at what my method and model is for adding sustainability as one of the core cornerstones of how dows operate, we're going to look at what that means in context of community in context of products and maybe goods or services, and we're also going to look at an easy way that you can contain your infrastructure and your organization in a framework that has a sustainable outcome before we jump in, though, let's start with the definition, if you're unfamiliar with the dao, the dao is a decentralized autonomous organization and I'm going to add a little spin to that which is adding sustainability.

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The key point here is that you actually have an organization that is not made up of an entity with a physical location with just the product and a business model. No, it's made up of many individuals from around the world. Anyone can join this organization, it's autonomous where there are no intermediaries commanding how you need to operate.

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It's an organization structure structured around folks that believe in the ethos and the mission of that organization. They've come alongside this organization to further the mission and create amazing things with this product or good or service, and the last thing is the sustainability.

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If the dao has a community and a solid ethos, sustainability will happen when there is a net positive operation ratio, I'm going to define what that means, but at the core it's actually just a little tweak that you can do in in the way that the doubt operates.

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Why? Let's step back for a second and and ask, why is this needed free is not sustainable? I think everyone's pretty pretty familiar with these items here, so free versus paid in general terms. A free service is not going to last as long as a paid service.

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It makes sense the developers couldn't keep up with that free service. Maybe the infrastructure cost was too expensive.

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Second, fully open source free projects versus private projects that are likely privately funded or publicly funded are not going to do as well. However, their community might be thriving, so this one is a special case where, if the community is philanthropic, maybe they devote a key amount of time to deliver that great product.

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But it's going to be difficult for that to have ongoing sustained development unless there are more donations or more free time available from those developers. It's also hard to find skilled talent to further that without some sort of incentive.

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The last thing I want to mention is sustainability with free open source software. I want to give a quick shout out to ink drop they're a note-taking app that is fully open, source and free. You can run it as a self-hosted service entirely on your own or you can do a subscription fee and that's how they're able to sustain themselves.

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So what does it mean to have a decentralized organization? These are actually not nothing. New they've been around for a really long time. It just means that there's a globally decentralized team, maybe they're operating in multiple countries, there's also the blockchain examples. Maybe you've heard of molok, dao or maker dao or sybil.org. Those are all great examples of how decentralization can be coordinated on the blockchain they're. Also amazing, when they're not limited to nationality, and you can have amazing user experience just by delivering a consensus protocol on top of the blockchain.

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So the thing about that is, it may be top-heavy in the case of a decentralized organization of a traditional company. You're gonna have the c-suite commanding all the underlings and maybe the management teams of a bigger organization.

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It's also not representative of the entire user base and customers and development.

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Autonomy in organizations is also really important. It removes the intermediaries, it promotes diversity. It can reduce the collateral bias that in some cases happens. This is kind of the the main key factor of these dows. The autonomy without the intermediary is really important.

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A really cool concept- that's actually happening is. If you have these decentralized autonomous organizations, you can actually create networks of taos that can communicate across and between other doubts, dao's can create doubts to talk to dao's taos.

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I could go on there's also another crazy option here, where automation can be a part of the autonomy where a lot of the micro governance can happen in an automated way if the dao votes on a specific way that they want to have outcomes happen. So it's similar to the token mindset, except it's creating a scheme or a system that will make those changes and behaviors on its own.

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Lastly, let's talk about sustainability. This is a in general terms. The business model of a dao and the goal here is to have a net positive effect, something that makes sure that a dow can sustain itself.

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The ways to achieve this are by having a strong community goods or services and payment loops and, lastly, external revenue based on dow collateral. This could be anything from tokens or nfts or even subscription fees. Something like that. So here's the model that we've been following at kroncat, which is first and foremost, building a community, adding a layer of a product and a service which is the cronkite run time, and now we've got a good service, some organization we're going to organize using that dow collateral we're going to back that by our mission.

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The dow collateral would be some of the fees that are used to run the service, so that collateral is then staked and earning interest and then, lastly, to keep the whole thing bundled up nicely and sustainable.

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Since that interest is it's occurring over time, it's actually used to negate any of the operational costs and pay those that are running the service and that ends us in a net positive effect.

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So here's a quick look at cronkite cronkite is a dow based product. It is governed by four different groups of people, it's not token backed, so those four groups of people are the founders, the applications that use it, agents that run the service and commanders which are the growth, hackers, the marketing and everything else, support team.

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That gives us a really nice governance layer that can operate, and it's using that micro fee structure plus compounding to keep the entire service very cheap and very efficient.

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So, let's look at a traditional governance model. You may have been familiar with tokens, for example, maker dial. They are backed by the maker token that token holdings is how you can weight your votes for the ongoing governance and development.

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um One really cool project is common stack. The ui that's seen here is a simulation of how those tokens can be generated and bring in some sustainability into the dow. However, there's really big drawbacks there, which are you can get unfairly uh allocated tokens across all of those that are participating in the dao and you can have bias based voting with collateral.

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So really, the important thing to remember is that utility and sustainability are core pieces of a doubt.

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Utility comes from that store of value, the store of value that is generated from the community and the ethos, and the methodology that really drive that innovation and that governance around a product that will also drive network effects and create growth, long-term value. Once that that mindset is really running and operating, it should sustain and grow itself.

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So here's the formula for you and here's, the takeaway that you can apply to your organization, start with a network, a network is your community and like-minded individuals that are going to grow. Your mission, second, is a consumable, something that your dow is really good at that could be artwork. It could be a good. It could be a service, something that those that are like-minded can get behind and help produce.

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That's something that you can govern and iterate and innovate using a dao.

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Once you have that you have collateral now you have assets that can maintain potential passive income in many cases that passive income can be compounding interest from staking or yield farming or whatever, and that will add a net positive effect for the operations of the dow, whether that's just simply paying back all of your community for their voting or if it's incentivizing your community, to continue developing, paying them back and earning a little bit of revenue on the side to further the mission. So that's really the key takeaway for today decentralized organizations are the future.

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I believe autonomy is the new way of expressing that you're free you're, not reporting to that intermediary organizations. I believe, require inclusivity and that's easily achievable with a doubt. And lastly, sustainability is the last piece of that dao that will really take every sort of organization that's available and make it maintainable long term.

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Thanks for listening, I hope you enjoy the rest of the conference if you're interested in working with me and the crown cats and the rest of our decentralized autonomous organization reach out thanks a lot.