Source-Level DAO Platform will be the Next Step in Business Evolution
With the decentralized nature of blockchain tech, the traditional hierarchical structures associated with organizations that fall within a centralized platform, such as single ownership, leader, trust, and headquarters, are no longer applicable.
For instance, web service providers support account structures that can only cater to a centralized, single owner structure, with centralized control and oversight. Such a structure certainly falls short of supporting the new world of decentralization.
Ellcrys is delivering a solution to the problem with Source-Level Decentralized Autonomous Organization (“SDAO”) and will be the first to bring the Source-Level Decentralized Autonomous Organization platform to market.
A Source-Level DAO is a decentralized source code repository that can have multiple owners, with an identification of ownership coming from the continued contribution of owners to the SDAO. Contributors create and publish tasks that are completed, with members being required to vote in order to accept or decline a solution to a particular task, through a process referred to as a Task Review Proposal. For the completion of successful tasks, points are then awarded to the contributors.
The advantage of SDAO is that there is no org chart of head office, so there is no management structure, creating an organization that allows everyone within an SDAO to influence the direction and decision-making processes. Contributors to the SDAO create and publish proposals, with the majority vote deciding the outcome. Contributors are also able to delegate work to other contributors by creating new task proposals.
A key characteristic of Ellcrys’s SDAO is that ownership is ephemeral. Owners need to continue contributing to the organization in order to avoid a gradual depletion of their stake in the organization. In the event that an owner is at risk of stake depletion, the option is available for the owner to sell back their stake to other owners.
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While the decentralized and lack of hierarchy is an important trait for some SDAOs, other SDAOs may require voting rights to be based upon reputation or stake. Source-Level DAO allows for voting rights to be determined by a contributor’s stake or reputation.
Reputation is attained by consistency in the quality of contributions and, while a stake may be transferred to another contributor, reputation is non-transferrable. At the launch of an SDAO, all contributor reputations are equal and new coins are distributed equally until there is a divergence in reputation, which then influences the distribution of coins for work done.
On Ellcrys, SDAOs can be revenue generating. Payments received are visible to all of the contributors to the SDAO, with a contributor required to submit a New Task Proposal for a distribution of wages, which is then voted upon before the deduction is made and the identified contributors receive the allocated wages.
In addition to native coins and stakes, other reward mechanisms include tokens that are the primary form of exchange to obtain services offered by an SDAO and revenue, earned from tasks completed or wages earned.
Reputation within an SDAO will be the most important asset and decides the level of influence that a contributor holds within the SDAO, while also determining how much reward a contributor will receive for their contribution.
While it may take some time for the SDAO concept to be fully embraced, the principle of reputation within an SDAO is an attractive quality that Ellcrys has developed, ensuring that organizational hierarchy exists in the loosest possible sense, purely by the quality of contribution and effort made to the organization.
Ellcrys token sale starts on 1st of February with the purchase of tokens via Ethereum.