Andreas Park PRO
Professor of Finance at UofT
Instructors: Andreas Park and Zissis Poulos
What is a firm?
the firm begins where contracts end
(paraphrased from Ronald Coase 1937)
Ideas for Organizations/Firms
What is a DAO?
DAO = Decentralized Autonomous Organization
no central leader
runs without external influence
suggests something that binds everything together
Decentralized Autonomous Organization
Types of DAOs
Disclaimer: more structures and ideas will emerge
Problems with DAOs
Sidebar:
Currently: governance = decision making= voting
Challenges with governance
UniSwap Lab supports development
a website app accesses the code
governance (UNI) token holders control contact features
don't own the code
operation = decentral
control = decentral
anyone can use the baseline code
core code runs on the blockchain
Source: Sybill.org
background: 3m=0.3%, 30m=3% of UNI tokens
Bottom line: governance can be hard because of lack of engagement!
The Three Big Questions
Big Questions for Voting
Who should vote?
Big idea: blockchain does allow new and different vote participation rules!
How to vote?
The Three Big Questions
Impossibility Results
Sidebar:
Ken Arrow said this: "Most systems are not going to work badly all of the time. All I proved is that all can work badly at times."
Other issues
Learning from Voting on Candidates
Desirable features (binary elections)
May's Theorem: In binary voting, only the majority rule satisfies the above three requirements
Desirable features (multi-candidate elections)
The big take-home:
Quadratic voting (hot topic at the moment)
Lalley, Steven and Weyl, Eric Glen, Quadratic Voting: How Mechanism Design Can Radicalize Democracy (December 24, 2017). American Economic Association Papers and Proceedings, Vol. 1, No. 1, 2018, Available at SSRN: https://ssrn.com/abstract=2003531 or http://dx.doi.org/10.2139/ssrn.2003531
Summary
Summary: DAO Governance
@financeUTM
andreas.park@rotman.utoronto.ca
slides.com/ap248
sites.google.com/site/parkandreas/
youtube.com/user/andreaspark2812/
By Andreas Park