BUIDLing scalable DAOs

Transcript

so we have martine field next he's architected a stack and he'll be talking about building scalable aetherium dowse okay thank you so my name is martin and i'm working on now stack and i'll tell you about the theorem dow okay so this is ground zero i think that's the one common factor that unites us all we all dearly love a Tyrian we are stake we've built businesses on aquarium and well that's a good starting point to also face reality in a and ask the hard

questions so this is the situation there is i think there is a growing belief that there is an increasing competition blocked in space so i think the if you asked me two years ago i would say that there is no chance that a viable competitor to exterior will rise i think that assumption is not anymore so clear anything many believe that it here needs to increase the pace of innovation in order to maintain its advantage so I think there is quite consensus that a theorem currently lacks the structure to properly support even faster innovation both at the etherium core blockchain development and the ecosystem development okay scalability is one particular

example earlier so early in 2016 the estimation was that initial scalability will show up in 2017 and final unlimited skill with the scalability will show up in 2018 and now it's pretty clear that at best we're looking at 20 2021 and possibly even 20 to do so but really it's beyond just scalability what we need at the end of the day we need mass adoption and for mass adoption we would need true killer adapts and for truly clear adapt so we need also to solve scalability but as well to solve non you you know

gas relays is a key management so on so forth and eventually also better security solutions okay so this is the situation the good the bad and the ugly so I think still I would say that the theorem number one asset in even unfair advantage and also the most important network effect it has is the build builders community and it builds community I don't I don't mean just the community of developers that building aetherium but also the greater community that are building on top of it area and this is by far the largest community in the space I would even say there's a an order of magnitude bigger than any other community it's by far the most important

Network effect more important than miners and users so we need to find ways to better utilize this invaluable resource and I think divert better energy is rather than the internal dirty words that are now on the rising with with market pressure so so let's ask the hard question what is blocking us from faster innovation right now so I would I would argue it's definitely not capital so even if you put aside the funds the detail information itself holds if you just took ten percent of mining and turned it into inflation fund you would get seven million dollars a

month in a consistent development fund and this is this is this is enormous I would also argue that's definitely not human resources lack of human resource that is a bit bottlenecking us right now we have thousands of builders in space perhaps even tens of thousand so many people are ready to work for that and I think that's not holding us back from further innovation so I would argue that the one bottleneck for for faster innovation is decision-making capacity so with that try to imagine the ether Dow or the theorem Dow try to imagine a seven million door a month's inflation

fund to which anyone that has an idea can apply for funding can be quickly screened and get fund within one week of course if the idea is great imagine all those 10,000 in Tyrians you know hardly engaged a collaboratively engaged submitting 300 peoples of the day screwing all of them and finding the best one so I'm just assuming an average etherion will submit one proposal a month now if you get if you get that imagination you might be excited but you also might be worried because that's well that's a lot of proposal to screen every day and we're not sure what can do that

so this is exactly where those come in so those I would say are good for there is one thing that there are really good for and this is scaling up capacity while maintaining the centralization and you can ask but well what this is reading this intro session is good for and the standardization I would say is good for in order to maintain alignment of interest and alignment of interest is good for effectivity and of course a better world for everyone so this is this is down I want to show you what I mean by scalability so this is its agents they shoot up proposals to the Dow and now is this machinery that turns proposals into decisions so it object s-- or rejects the bad ones and automatically executes

the good ones and this this construction is only interesting if that it can go from this into that if it cannot scale the number of agents scale the number of proposals and number of the throughput the number of decisions made by the Dow it's simply not that interesting it's not a new structure so those are open and scaled organization with the emphasis on scalable but then the big question is about how how can we scale scale throughput in such a way so the solution I want to propose is holographic consensus it's a new you know way to make governance a new way to make decisions in a Tao that does provide scalability does provide scalable down throughput so I'll go of

very briefly about that not with all details but just imagine this gigantic inflow of proposals of high high frequency of proposal coming in and in order if you really want to screen them all you'll have to allow for local decisions so decision that are made by relative majority with no requirement of quorum if you really want to screen them all but on the other hand if you want to have safety and an resiliency you need all of them to be actually representative so even though they are made its local decisions by a small number of people or small amount of voting power they would need to represent the silent majority and this is of course where the problem

is how can local decision made by just a few members can represent everyone else that's the conundrum so this is exactly what holographic concerns is about enabling local decisions that are actually insured to be represented of the entire absolute majority so let me just show you very quickly how it works out there is this inflow for regular proposals so each each new proposal enters the regular queue votes you know voters can cast their vote and votes are weighted with reputation reputation is just a nice name for voting power without referring to what's the origin of repetition if

it's you know if it's meritocratic or token locking doesn't really matter now these propose of this regular proposal require absolute majority to be approved in executed absolute majority means majority of all voting power in the system and of course they times out after some time if nothing interesting happens let's say after a months they just times out now the new thing is there is predict prediction network there is predictors stake gen and of stock token on proposals let's see how that works so anyone can be count predictor you don't need to be a reputation holder our a member of a dowel and you can stake

gen talkin some weather possible pass and call it up stake or fail down stake now you're only predicting predicting what the voters will say the predictors themself do not participate in the decision they just predict what the voters will decide and then once and if there is resolution if the voters get to resolve that proposal then successful predictors win all of the steak of the wrong ones that in there are losing their steak and and importantly and lastly the Dow itself Dow steaks each and every proposal in order to incentivize the predictors to come in and start searching for good proposals that's the kind of like kicking off kicking off the game and then there's this new thing called

booster proposals so if an upon there is sufficient positive prediction signal the end proposals get boosted so by sufficient I mean that well you can see the signal over here this is like the UPS taking and this is the down stake and if the total amount of ups take over the total amount of douse take down stake if that ratio is higher than some threshold long enough so stabili for some time only then a proposal gets boosted once it gets boosted it can be approved and executed by a relative majority so it has like a shorter time period let's say a week at which people will vote will keep on voting on it and the end of that week whatever the majority from

those voters is that's decision and execution so this is how it looks like some some will signal up we'll get to the boosted cue people will keep voting on them and a decision will be made so this is the summary of flow graph constants again I I missed out I put out a lot of details but a whole graphic says what it really does or the way that it works is that it's achieved by turning a social arbitrage so a situation that where active voters do not reflect well the global majority into economic arbitrage the situation where anyone can make a profit from identifying signaling as they engage against it so again we try to avoid the

situation we wanted the the the whole purpose of our graphic Constance's was to avoid the situation of social tries to avoid the situation where a local decision is made which does not reflect well the global majority and the way we resolve from that mismatch is by making that transferring that into an economic arbitrage that then the mark the free market will take care of take care of and exploit so I will not get into reputation how reputation is achieved but there are various schemes and just to say that it doesn't really matter because the technology for the Dow that that that we can put up the Dow stack itself is completely agnostic and model or I can support any governance protocol in any

reputation system I will show you very very quickly the interface for this Dow alchemy it's an interface for the operation you can go and play with it in alchemy Dada staccato IO it's still pre-release it's still many many a ux bugs you in UI bugs but it's working it's working the minute it has been working in alpha for five months with a mini Dow of 100 people very successfully and now we're launching the beta phase so actually the Dow is live again just a few days ago so this is I'll just show you some pictures and you can go play with it later so this is like the dividend virus does that you'll see inside when they launch in a few weeks these are kind of like the proposal you would

see the regular proposal downstairs and then the depending those heart that are above threshold but are waiting to be stabilized so for some time and finally the boosted ones if you get into a proposal see all of its detail the voting stats the mistaking stats there is a discussion thread on each proposal and here you can you can make a new proposal so you can make there you can write the title now this depends by the way about which kind of governor skins you have so right now I'm describing a governor skin where at the end of the process you're just allocating some funds or reputation to a beneficiary but this actually system can support any sort of decision can be made on the blockchain your system can eventually can make any call to any other contract and maybe for example manage the Dutch X

platform in the case of the dig style that is launching in a couple of months so you can basically put all details in that proposals yeah and this is just showing you different schemes your doubt your down may have different scheme so this is 20 bution row that I just mentioned but you can have protocol upgrade decisions you can have external decisions and so on so forth you can see all reputation holders and and and many more things so to wrap up I would say that we filmed out the potential assume Dow could use an inflation fund to support a consistent development and faster much faster innovation I will argue that it

can actually support thousands of active contributors I will argue that holographic says this is here to support these thousands of proposals in a unit of time maybe hundreds of the day and and finally it alchemy the interface for all of that is ready for this experiment thank you thank you so much Martin um so you mentioned that you're going live in a couple of weeks what do you expect to be the first couple of use cases right so it's live right now the minute but kind of like internally so we have the Genesis now the the Dow stack Dow testing it and it's going live in a few weeks with the well a few a few test cases I think the most popular one is

the decentralized grant program it's actually exactly what I'm is scribing so polka dot web three is launching this decentralized grant program it Phoenix is launching the same and and there are few other which are more community dows and one of them is a psychedelic society another one is liberal and is more like bottom-up dowse yeah and I think maybe the most complex one is that that is the DX tau which is countries it's dull to control the Dutch X platform and and beyond a in Sydney we have a decentralized future fund and maybe will consider using what you have to provide so thank you very much thank you okay