DAOs

“I think DAOs is, and especially what happened with DAOs, there was a lot of people who were really excited about DAOs kind of as a concept. And so they put a lot of time running them, but it's actually a very like not interesting job, right? It's like you onbo…”

“Starting money first is wrong, right? Money comes, it's a superstructure on top of a community. It's a way for the community to represent its debits and credits between each other.”

“Centralization is good in times of crisis. And like, I think that across decision making authority too. And so when you talk about Dow's, like, I think a lot of the use cases you talked about are interesting in the context of a doubt where you have like you kn…”

“It's just terribly inefficient to have any doubt, like zoom in and make these microscopic decisions about who to hire or like an individual person's salary or stuff like that. It's just crazy to me. Instead, they need to allocate to basically an entrepreneur, …”

“I suspect that 98, 99% plus of the blockchain applications, the DAOs that exist today, are not going to be around long term.”

“And in some ways, governance and human involvement is almost a bug. It's not a feature. You want these systems and networks to stand on their own two feet, almost as public utilities.”

“So because of that uncertainty, I think DAOs probably trade at lower multiples than companies, at least in the near term.”

“The coordination around governance and voting mechanisms Has been collapsed to almost nothing when you're using these digital environments with provable ownership.”

“So if anything, I would say the biggest challenges around DAOs today are not that People are absconding with the money, but in fact that the money is not being spent quickly enough.”

“When you talk to founders, many times they prefer to take capital from DAOs as opposed to traditional venture firms.”

“Contrary to what DAO stand for, there's some efficiency in centralized organizations and having centralized operational capabilities, which is kind of similar to venture.”

“And one would assume that if these DAOs are to be successful over time, much like companies, institutional investors over time will find direct access to these DAOs. Now it might take like, you know, 10 years, five years, 15 years, but if this is already happe…”

“And if you believe that, then the end state likely of this trend that's been happening for more than two decades is likely going to lead to some sort of model and system that will be powered by web three endowed technologies behind them. And that is the bet th…”

“Purposeful DAOs, where they have explicit mandates and very specific ones. Tend to do much better. So if you have, like, a DAO that's just kind of very generic and doesn't really have a clear purpose, those ones have a much harder time sustaining themselves, w…”

“As it relates specifically to DAOs I, we do believe that DAOs are going to lead to fundamentally new organizations that don't easily or don't exist in today's world. A good example of this is like, you know, some of these DAOs that are popping up right now in …”

“Over the long run, when we're thinking about 10 to 20 year plus time spans, it's likely that the new to world markets are actually going to outsize the existing ones, and that's absolutely what we think Syndicate is going to do.”

“When you are in wartime and having to make dramatic, you know, bold decisions quickly, the idea of going and asking, you know, a hundred million users to vote on something and Trusting that it's going to be the right long-term decision when they're operating w…”

“Is I absolutely think we will recreate a lot of the known governance structures in society. We will recreate representative government, for example, where there are experts and you sort of delegate your votes to them and then they go off and make decisions tha…”

“You'll have millions and millions of doubts created. Many of them will fail. Many of them will look very similar to what we would expect just reasoning through it. And some small percent, 10% of them will wildly break our expectations about what's possible.”

“And I think for us to really know which of these experiments from governance or economic game theory perspective are durable, I think it's going to take seven to 10 years.”

“Who have made money, but they're not motivated by the same status symbols as prior generations. They don't want to buy yachts. They don't want to buy private jets. They don't want to buy, you know, houses. They want to buy digital rocks. They want to buy Uniso…”

“I think there's gonna be a subset of people who are gonna be contributing to DAOs who are gonna be unable to basically take a step back and be like, okay, I need to go eat with my family. I need to take a shower, et cetera. And that's scary.”

“I say DAOs because I believe that they will become legal and global capital formation for the first time on an instant basis will exist, and I believe forty million is the dry run for the Constitution, four hundred million and four billion will happen in the n…”

“I believe that we're probably, like, number three and number two are more likely to happen.”

“I think Eight out of 10 DAOs might totally fail because they have like kind of that leadership issue or like who is the final decision maker issue. But I think those other two are going to do things that like you might not have ever thought to do with a tradit…”

“And I think it's going to force the accreditation laws to change.”

“The next deal will end up being some shitty art piece that's worth a hundred grand as Chamath points out. They'll buy it for ten million, everyone will lose their ass. And the next 500 will look the same.”

“Structurally what's going to happen is there are going to be more of those things that are going to show up that will rip people off and that will heighten regulatory interest and people will come along and they'll start to clamp down on this stuff.”

“We talked about these things as if they already are here, and they're not quite here. I mean, technically, I know they exist, but people haven't really figured out how to Use them to, you know, to be a fund manager, for example.”

“So when you add all these three things together, I think to me it's the most incredibly positively disruptive force I have seen. I think it will destroy wealth. I frankly couldn't give a fuck. And I think it's better for the world.”

“DAOs aren't run through a centralized decision maker like one person or a few senior leaders on a leadership team at a company. There is code that defines how the business operates, and it is 100% transparent for anyone, anyone involved in the DAO to see, and …”

“If everybody comes at this from, like, some kind of hyper-rational, self-centered, I'm only in it for myself, mentality. Then they'll just never coordinate. They'll never cooperate, you know, and they'll never put aside their differences and do the hard work o…”

“Part of our experience of growing up has been to not be afraid of leadership. Leadership is so big. With humans, whether they're coordinating on mass scales, on micro scales, or anything in between, you know, we've really learned that a good leader is worth ev…”

“And now as we move into a new wave of DAOs that is just the beginning, we're going to have a whole new body of management leadership.”

“And so that's an area where I still think that, you know, for obvious reasons, it's going to be a couple of years before we really learn how to do it well and safely, but it's still one of those that I'm Really interested and excited about.”