Decentralized Autonomous Organizations (DAOs): A Primer

Decentralized Autonomous Organizations (DAOs) & Smart Contract Technology

We’re BULLISH on DAOs! For us, the hope of a better tomorrow lies in all the opportunities yet to come on the DAO and smart contract front!

The only problem currently with DAOs are that they aren’t always user friendly and the average person has no idea what it is. We want to open this technology up and make it more mainstream.

In simple terms, the DAO is going to be the program that you use on your Blockchain Billiards Mobile App or Web Browser to introduce proposals and vote on existing proposals to make changes in the Handbook, for tournament formats, or Treasury decisions. It will remind you of online polls.

But what is a DAO? It stands for a Decentralized Autonomous Organization, and it is a type of organization represented by smart contracts and governed by its stakeholders without the need for centralized control or traditional hierarchical structures.

In more detail, a smart contract is a type of computer program that automatically executes and enforces the terms of an agreement or contract when certain conditions are met. It runs on a blockchain, which is a decentralized and distributed digital ledger, and is written in code. Smart contracts can facilitate, verify, or enforce the negotiation or performance of a contract, without the need for intermediaries like lawyers or banks. They are designed to be secure and transparent, once deployed on the blockchain.

Imagine a smart contract is like a vending machine. When you put money in and press a button for your snack, the machine automatically gives you what you paid for. Similarly, a smart contract on the blockchain automatically carries out actions agreed upon by both parties once certain conditions are met, without needing someone to oversee the process.

Smart contract technology, facilitated through DAOs, has the potential to revolutionize organizational structures by enabling a democratic and decentralized decision-making process where everyone involved has a voice and a vote. It’s bottom up, not top down.

DAOs are entities represented and governed by code, which execute automatically when predefined conditions are met. They operate on blockchain networks, allowing for transparent, tamper-proof, and immutable record-keeping. In the context of decision-making, DAOs can be programmed to execute various functions, such as voting on proposals, allocating resources, or managing funds, all without the need for intermediaries or centralized control.

Let’s take some common billiards examples:

·       Tournament formats. Let’s say you’re playing a double elimination format in the regionals. In a double elimination tournament, players who lose earlier on can continue competing in the losers' bracket for a chance at redemption. They could even make it to the finals and become a champion. However, if a player makes it to the later stages of the tournament, such as the semi-finals, and then loses, they do not get another opportunity to enter a separate bracket for redemption. This style might seem a bit unfair since some players get a second chance while others do not. In the Blockchain Billiards DAO, players may propose and vote on a different tournament format (e.g., Single Elimination, Round Robin, Swiss System, or any other model).

·       League rules.  In other leagues, you may be required to have a team that consists of five players and a cumulative skill level of the players on a team cannot exceed 23.  The 23 system, while designed to promote balanced competition, can potentially create incentives for players to engage in sandbagging, which is prohibited and discouraged, especially if someone perceives it as necessary to sandbag in order to remain on their team or to qualify for regionals or nationals. There may be better models. Proposals to this extent can be made, and voted on, in our DAO. When it comes to the rules, members can be very creative.

·       Treasury decisions. The league is a DAO LLC non-profit. This means that revenue earned is used for the sake of its members. So why not allow the members to decide what this money should be spent on!? In the DAO, members can make proposals and vote on Treasury allocations annually.

DAO transactions are made available on a public ledger, which means that all transaction records are publicly visible and transparent. Ever donate to an organization and wonder how much is being allocated to the cause and not to someone’s pockets? Sure, there are public filings, but it doesn’t always tell the full story. With blockchain technology, the public ledger will provide that visibility.

One of the most compelling features of DAOs is their inclusivity. By utilizing smart contracts, DAOs can ensure that every member in the League, has an equal opportunity to participate in decision-making processes. This democratic approach promotes transparency, accountability, and fairness with the organization, as decisions are made collectively based on the consensus of participants.

Moreover, smart contracts can enforce predefined rules and protocols, ensuring that decisions are executed as intended and without the potential for manipulation or bias. This enhances the trustworthiness of the decision-making process and reduces the risk of fraud or corruption.

Additionally, DAOs can foster innovation and creativity by enabling rapid experimentation and iteration. Since decision-making is decentralized and permissionless, anyone can propose ideas, and the collective wisdom of the organization can determine which proposals are adopted and implemented. This open and collaborative environment encourages diverse perspectives and allows for the exploration of novel solutions to complex problems.

At Blockchain Billiards, we are taking on this honor-bound mission to fine-tune the DAO experience and develop a truly remarkable and global League.