DAO Infrastructure

Core to decentralized economies is a network that continuously creates consensus for propagating transactions irrespective of the device or its hardware capabilities. Over time, the Semada DAO Infrastructure will become the environment for hosting decentralized companies.

SRI’s protocols facilitate autonomous self-governing networks of DAOs.

A good example that helps illustrate the DAO improvements over existing internet-based platform companies is Uber, the ride-sharing platform company. In essence, the DAO is a collective of people who decide to follow a certain protocol. Semada is the platform that helps the members of DAOs adhere to their own protocols. The Uber DAO on the Semada Platform can be seen as Uber the company with all its constituents except without the company, e.g. the entity, itself and its hierarchical governance structures. If Uber were a Semada DAO, the DAO collective of Uber drivers would become Uber, e.g. a fully decentralized company without hierarchies. The control and power over the Uber DAO would be completely in the hands of the DAO Uber collective. Yet, the staking mechanisms in the Semada protocols make the voting structure different than any previous attempts at creating liquid democracies.

Several core benefits are associated with the DAO infrastructure for decentralized platform businesses. First and foremost, the pricing should not be determined by the company Uber. The drivers and their passengers know best what pricing can work among them. The pricing for rides would be determined by the DAO members and their passengers. Hence, the marketplace is in the DAO itself. Second, the decentralized network of DAOs is significantly more efficient because the centralized fees, e.g. in Uber’s case 25%, can be shared between the drivers / DAO members and the passengers. Third, the decentralized DAO business infrastructure is more efficient because the drivers themselves know best how to assess other drivers as members of the DAO. Fourth, the DAO collective enables unprecedented information symmetry among all constituents because unlike centralized internet-based platform businesses, DAO members continuously, iteratively, and incrementally evaluate all information pertaining to decision making metrics and protocols that govern the DAO. More complex DAO arrangements can be further governed by smart contracts. Because of the information history of the smart contracts, users can further get paid for improving smart contracts.

The combined efficiencies of DAOs over existing businesses suggest that DAO businesses could effectively overcome collective action problems and outcompete internet-based businesses such as Uber.