Decentralised Autonomous Organisation - The future of Governance
Governance can be defined as: “The system by which entities, networks are directed and controlled. It is concerned with structure and processes for decision making, accountability, control and behaviour at the top of an entity. Governance influences how an organisation’s objectives are set and achieved, how risk is monitored and addressed and how performance is optimised”. Governance is a system and process, not a single activity and therefore successful implementation of a good governance strategy requires a systematic approach that incorporates strategic planning, risk management and performance management. Like culture, it is a core component of the unique characteristics of a successful organisation.
Every society, organisation or network need some type of governance to survive and thrive. History has seen the experimentation of different type of centralised governance models, which ultimately have failed and as we are all well aware today the democratic governance systems we live in are breaking down. The disparity between the rich and the poor is ever growing and creating economic unrest. It basically comes down to the fact that centralised systems have failed miserably, and as we move into deeper into the digital realm, centralized systems become more of an enslaving tool and hinder our freedom. Decentralised systems based on blockchain technology are the need of the hour.
The crypto universe with its smart-contract technology has introduced the DAO (Decentralized Autonomous Organization) concept, which has been hailed as the holy grail which will redeem humanity, but this has not resulted in a perfected workable model.
A DAO, or “Decentralized Autonomous Organization,” is a community-led entity with no central authority. It is fully autonomous and transparent: even the very code itself can be publicly audited. Decisions get made from the bottom-up, governed by a community organized around a specific set of rules enforced by contracts on a blockchain
DAOs are internet-native organizations collectively owned and managed by their members. Ultimately, a DAO is governed entirely by its individual members who collectively make critical decisions about the future of the project, such as technical upgrades and treasury allocations. They have built-in treasuries that are only accessible with the approval of their members. Decisions are made via proposals the group votes on during a specified period.
Community members create proposals about the future operations of the protocol and then come together to vote on each proposal. Proposals that achieve some predefined level of consensus are then accepted and enforced by the rules instantiated within the smart contract.
The Nexus DAO is based on the Social Stack; a new social structure concept for the future. The goal of the social stack is to build a new type of governance structure which not only suits the Nexus network, but also to be utilised in real world for any organisation, society or network.
Nexus has designed the DAO organisation structure to resemble the starfish; decentralized network, no head, major organs are replicated throughout each arm. Cut it in half, and you get two starfish. This organisation structure can withstand around 42% malicious actors or two arms going corrupt.
A new social structure has to be vetted, tested in its natural habitat, and we have launched the organisation as a group of people, testing every functionality and fine tuning it before programming it mathematically into the Nexus protocols. The on-chain DAO is scheduled for release with the 7.0 update.
Nexus will have the Ambassador and the Developer starfish organisation which will be the legislative and the executive branches
Nexus DAO technology is based on mathematical regulation to improve the overall network governance model. The technology will enable groups that share similar knowledge and interests to vote together on subject matters that they have expertise in. By encapsulating values that are alike into groups that determine a smaller part of the entire decision itself, we can improve the overall reflection of value in a system as a whole. This concept can be observed in the human body: the lungs value certain resources over the stomach, heart, kidneys, liver, although they all work together as components of a decentralized system to form the basis of a healthy body.
”The dilemma is not that people have conflicting value systems, but rather that they are usually required to decide together in one group. We believe the best way to enforce the keys is by a public vote on their issuance.”
This is an important step towards the longer term sustainability of our Ecosystem, and the creation of direct accountability of those who are paid to complete work on behalf of the community. In order to fully maintain an active contract, Ambassadors or Developers will be required to uphold the utmost transparency, accountability, and performance necessary for continued support. Mathematically enforced management of the funds will prevent the mismanagement of funds, corruption, coercion, and complacency that can arise in growing organizations.