If you know me and my work, surely you’ll know, I’m very passionate about the topic of inclusion. I’m always looking for ways in which we can create more inclusive companies and workplaces.
When talking about diversity and inclusion, most people think about gender diversity, yet this is only one aspect of the diversity spectrum. Background, country, skillset, gender, and behavioral diversity are all significant, and this is just to name a few.
Unfortunately, while we’ve seen some improvements in companies attempting to make good D&I commitments by recruiting with diversity in mind, we are still far behind the ideal. Furthermore, hiring is only the first step. Companies should think more about retaining and developing talent - which requires by default building an inclusive company culture.
Last but not least, there are still constraints from the Web2 legacy, where people are required to be in a physical location or hold a certain degree in order to work for a company.
Thankfully, this is already changing a lot in the Web3 industry.
Most of the companies in this space are already working remotely, with international virtual teams and flexible working hours.
(oh, by the way, if you’re wondering about what the hell is Web3 and why everyone is talking about it, don’t worry! For now, let’s simply say that Web 3.0 refers to the next generation of the Internet, which, thanks to blockchain technology, will be completely decentralized.)
One of the most fascinating areas of Web3 that I really believe can play a huge role in the future of work is the concept of DAOs: Decentralised Autonomous Organizations.
DAOs are basically companies (or projects) with a flatter, more flexible organization, where there’s no need for a defined management team, a board of directors, or other management roles which would usually lead the organization. The rules and principles of the company are governed by “code”, controlled by the organization members, and not influenced by a central authority.
They redefine entirely the concept of work as people can come together without knowing each other simply by establishing their own rules and making their own decisions.
In the concept of a DAO people can come together for multiple reasons, but often it’s either to provide a service or product or to make a profit/ return on investment.
The concept of making investments together is particularly fascinating. In today’s world, if you want to make an investment, you’d usually seek advice and support from an expert or a company, to take your capital and generate a return for you.
With a DAO model, people can pool their capital together and collaborate over investment decisions. They are disintermediating the old paradigm of having someone to manage your capital and leaning on a broader group of people to actively manage and decide on their asset allocation.
Another fascinating application of DAOs is when people gather together to purchase specific assets. For example, there's ConstitutionDAO, which was trying to obtain a copy of the Constitution of the United States. In fact, people everywhere are trying to pool together capital in order to acquire a number of things.
What fascinates me the most in this concept is the fact that DAOs are not centrally run and they don’t even need to have people working for them full time.
They’re not tight to one place or even a timezone, and, ideally, people who participate can be located anywhere in the world.
All the work is digitally native, without the need for physical interactions.
The positive impact that these structures can create globally is incredible to imagine if we reach a point where they are massively rolled out and adopted.
People could contribute to multiple DAOs based on the topics they’re most passionate about.
They could comfortably perform their work from their home, without the need to commute or travel to faraway locations.
They could choose to work in the hours that are more suitable for them and have a great work-life balance.
They could choose to work in another country, without having to ask permission from anyone.
And, most importantly, they could come from any background without the need for gatekeeping from legacy companies.
This is the future of work. And this is a truly inclusive environment.
An environment where we give the single individual the power to decide how much they want to contribute, and to which initiatives.
All of this sounds very promising, however, I believe there are many points that need to be addressed for DAOs to become broadly adopted.
First of all, if people voluntarily choose to enter/exit DAOs, and contribute based on their preferences, how can we make sure they will be fairly compensated for their work?
How can DAOs manage their talent’s growth and development?
In my opinion, there would need to be a legal framework/ entity through which DAOs could manage relationships with their employees/collaborators. This gets even more complicated when thinking that DAOs are not tight to one country, but rather located in multiple jurisdictions around the world with very different employment laws.
Legal uncertainty is an important challenge. DAOs will need to find answers to how they can engage with policymakers to establish their rights and the rights of their communities.
The million-dollar question is, therefore, how do you develop a system that is scalable, replicable, and decentralized?
I personally don’t see a scalable fully decentralized solution, but hybrid models that will either:
Form DAOs to manage a portion of their businesses (eg. marketing or treasury management),
Create DAOs with a board of directors/team to oversee decision making
It all sounds pretty futuristic, but I am very confident that, in the next few years, we’ll be able to transform some of these experiments into reality.
I’m looking forward to seeing the ecosystem develop!
As always, if you are involved in a great DAO, feel free to reach out and spread the word!