Modern capitalism is undergoing radical changes due to new social trends and blockchain development. We are living in the Post-Fordism era, where the labor is not alienated anymore, capital isn't fixed and means of production aren't necessarily owned by the bourgeoisie. So let Karl Marx rest in peace while our generation rethinking not only the Labor conditions and organization structures but the Labor itself.
Redefining opportunities and responsibilities for people in a society absent of mass formal employment is likely to be the single most pressing social issue of the century
-- Jeremy Rifkin
We #BUIDL KYODO new economy model for DAO with the hottest instrument of rewarding community participants.
KYODO Dapp is for managing DAO based on Ethereum blockchain.
Many modern thinkers have noted new features of the Post labor era that we are experiencing nowadays. The main long-term social trends should be taken into account modeling modern organization.
- Liquid modernity / Hyper fluidity / Constant changing / Avoiding long-term obligations / Nomadism 1
- Third industrial revolution / Global switching from vertical hierarchy to horizontal organizations / Decentralization 2
- Post labor 3 / Workless world 4 / Labor Gamification 5
- Networks for collective individuation 6
1 "It is a kind of chaotic continuation of modernity, where a person can shift from one social position to another in a fluid manner. Nomadism becomes a general trait of the 'liquid modern' man as he flows through his own life like a tourist, changing places, jobs, spouses, values and sometimes more—such as political or sexual orientation—excluding himself from traditional networks of support, while also freeing himself from the restrictions or requirements those networks impose." https://en.wikipedia.org/wiki/Late_modernity "Liquid modernity" Zigmund Bauman ↩
2 "Jeremy Rifkin explores how Internet technology and renewable energy are merging to create a powerful new engine of economic growth. This process will usher in a fundamental reordering of human relationships, from hierarchical to lateral, that will impact the way we conduct commerce, govern society, educate our children, and engage in civic life." https://en.wikipedia.org/wiki/The_Third_Industrial_Revolution ↩
3 "Labor becomes a voluntary activity there the working class owns the means of production. With this freedom, humans create with sincerity and desire, and not out of materialistic necessity." "Play and labor" Chin Jungkwon 2017 "Superhumanity" ↩
4 “New revolution is moving us to the edge of workless world” “the information and communication technology revolutions virtually guarantee more production with less human labor… Free time will come, William Green said, the only choice is unemployment or leisure.” Jeremy Rifkin “The End of Work: Decline of the Global Labor Force and the Dawn of the Post-Market Era” 1999 ↩
5 "According to Marx, capitalist is "alienated" labor. However, the situation is different now. As capitalism grew to become semiotic, aesthetic and play-like, the structure of human desire changed. Since the 1990s, wages have not been the only incentive for economic activity. That is, there has been an increasing amount of people who pursue what they are good at, even at the expense of high wages." "Play and labor" Chin Jungkwon 2017 "Superhumanity" ↩
6 The era of self-interested individuals, but they are looking for individuation through collective, through common activity and they will need networks for individuation.
"Each collective project could be defined by an agreed-upon goal, and requirements of fulfillment are collective initiated and updated by ‘members’ of the group. Tasks can then be assigned either in the form of individual actions or subgroups. Groups can be merged together to form larger projects at any time, and a project can also be split into smaller collectives. In this manner, collectives can discover each other and communicate to seek possibilities of collaborations and information sharing.”
YUK HUI Researcher specializing in digital objects and social web. HARRY HALPIN Research Scientist at Massachusetts Institute of Technology ↩
KYODO is a framework to solve issues that Decent.Fund meets building decentralized organization. Project aims to achieve:
- high activity from members;
- self-motivation and self-responsibility;
- hyper-flexibility to handle high liquidity of members and tasks;
- trusted governance;
- stable currency to reward contributors;
- effective fund management;
- good UX to eliminate the entry barrier for newcomers;
- ability to scale.
- Create a working DAO group. KYODO provides a clear interface for manage processes, gives a constructor to build a customized version of a DAO for the wide range of spheres.
- Ability to mint your own token or use existing mintable one. We use Colony to own and manage it.
- Instant tipping tool - instant payment for a contribution in crypto via different working chats. DF balance is reflected on the KYODO interface, and kept on Ethereum blockchain.
- Token economy with inflation as an incentive system.
- Democratic voting on the blockchain.
- Multi-signature wallet holding fund treasury.
- Task management interface.
- Network effect incorporated.
The productive processes and organization of labor fits within the KYODO framework that incorporates Blockchain, tokenization and collective intelligence and lead to lowering costs of coordination DAOs allow it to scale larger. Means KYODO reduces the transaction costs. Let's see which ones:
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Costs of blockchain transactions KYODO records to Ethereum blockchain the token allocation. To reduce the transaction cost of this operation. KYODO doesn't record every tip that each member receives, but collect the data of it on backend application with Mongo database cache layer. KYODO records the data to Ethereum blockchain one time in the end of period paying ETH for Gas. Period*- conditional time interval while tips are collecting before being recalculated into tokens and sent to a members.
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Bargaining costs They are the costs related to coming to an agreement that is agreeable to the parties involved and drawing up the contract. Aragon voting permissionless system
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Policing and enforcement costs They are the costs associated with making sure that the parties in the contract keep up their word and do not default on the terms of the contract.
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Search and information costs They are the costs associated with looking for relevant information and meeting with agents with whom the transaction will take place. KYODO motivates to share result to be rewarded.
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Opportunistic behavior KYODO impression based reward model
Now that the commodity value of human labor is becoming increasingly tangential in an even more automated world, new ways of defining human worth and the social relationship will need to be explored
-- Jeremy Rifkin "End of work"
KYODO explores new ways to reward and incentivize community members. KYODO is the new tool for liquid labor because the "Pey per hour" rewarding model is now better fitted for machines than humans.
A horizontal organization is free from the management layer leaving its stakeholders in full self-responsibility for the outcome. However, any rational participant is interested in further development and flourish of the organization. Thus, novel management model should be aimed to unite and guide productive members to collective benefit.
In an organization run by KYODO, stakeholders are bounded by the token which represents ownership of all common assets and rights for future revenue distribution. The model suggests simple mechanics as an incentive for members to stay active and productive contributors: minting new tokens through activity.
At the start of a period(usually not less than a month), every member of DAO receives a stack of points based on their native token holdings. Those points are used to reward other members of DAO who make valuable contributions(Impression based model). After period ends, new native tokens are minted and distributed among members pro rata to earned points.
The quantity of newly minted tokens(inflation) is derived from the overall level of activity in DAO by the following principle: the lower the activity, the higher the inflation would be and vice versa. Activity is determined through simple relation: Ps/Pt, where Ps - total points spent by all members during a period; Pt - total points at the start of a period. Inflation rate and activity relation graph
Such interrelation provides a strong incentive to contribute right at the start of a period as initial contributions will have huge weight(for some time at least). As a period goes by, less active members will try to spend all their points lowering inflation or try to earn points by themselves. Totally passive members will eventually feel the pressure of inflation and either leave the DAO or start to deliver useful contributions.
As we can see, inflation could serve both as a reward for active contributors and as soft non-human moderator for inactive members. However, there are concerns and opened questions around this model. For instance, how early contributor currently inactive will behave? Is quitting a good option for such member or it will be more beneficial to have their stake cut by inflation, but stay in DAO until stable revenue develops? How "fair" those rewards would be from the rewarded member point of view? How initial capital will be formed? How DAOs will regulate entry and exit of new members?