Above Average Joe | Intersection of DAO Compensation and Incentive Alignment - Making Bank: A Black Flag DAO Podcast (formerly Bankless DAO) Recap
Podcast: Making Bank: A Black Flag DAO Podcast (formerly Bankless DAO)
Published: 2023-02-20
Duration: 45 min
Guests: Above Average Joe
Summary
Above Average Joe discusses the challenges and opportunities in DAO compensation and incentive alignment, focusing on equitability and the dynamics of flat organizations. He emphasizes the importance of trust and reputation systems in fostering sustainable growth within DAOs.
What Happened
Above Average Joe, a long-standing member of Bankless DAO, reflects on his decade-long journey in crypto, emphasizing his focus on compensation and incentive alignment within DAOs. He draws parallels between the growth of Bankless DAO and personal milestones, likening his nurturing role in the DAO to parenting. Joe explains how DAOs, as flat organizations, face unique challenges in assigning responsibility and fostering initiative among members. He advocates for permaculture principles in DAOs, highlighting earth care, people care, and the return of surplus as crucial components of a sustainable system.
Joe elaborates on the symbiotic relationship between individuals and the DAO, where contributors are empowered to align their efforts with organizational goals. He stresses the importance of a clear code of conduct to maintain cultural cohesion as DAOs grow. The conversation touches on the need for a thoughtful onboarding process that facilitates new members' integration without overwhelming them. Joe critiques the common practice of assigning mentors, advocating for organic relationship building instead.
The discussion advances into the realm of reputation systems and their role in equitable compensation. Joe points out the difficulties in measuring subjective worth, particularly when comparing different types of contributions like coding and artistic work. He sees blockchain as a tool for capturing value creation transparently, which can help equalize compensation disparities.
Joe introduces the concept of finite and infinite games, where the goal is not to win but to sustain and propagate the game. He aligns this with the mission, vision, and values of DAOs, emphasizing the ongoing evolution of their goals. The conversation highlights the necessity of continuous adaptation and learning from past iterations to improve organizational resilience.
On the topic of scarcity, Joe argues that artificial scarcity, often seen in NFT projects, is not inherently beneficial. He suggests that true value lies in the creation and capture mechanisms rather than the scarcity of raw resources. This perspective shifts the focus towards more sustainable economic models.
Joe concludes with a call to action for participation in the DAO's infinite game, inviting listeners to engage in the community through initiatives like the internal Thrivecoin supporter system. He sees these efforts as vital to fertilizing the ecosystem and enhancing its value proposition.
Key Insights
- DAOs face challenges in assigning responsibility due to their flat organizational structure, making it crucial to foster initiative among members and maintain cultural cohesion through a clear code of conduct.
- Permaculture principles such as earth care, people care, and the return of surplus are advocated as sustainable strategies for DAOs to align individual contributions with organizational goals.
- Reputation systems in DAOs aim to address compensation disparities by transparently capturing value creation through blockchain, though measuring subjective worth remains challenging.
- Artificial scarcity, common in NFT projects, is criticized as not inherently beneficial, with true value emphasized in sustainable economic models focused on creation and capture mechanisms.