Let’s talk about leadership in DAOs. What leadership if you decentralized and led by no one? And how can you lead without a title or power that is pre-assigned to you?
Check out my another article Learn How To Defi Part 3
Leadership is tricky and what decentralized leadership is like? Apart from centralized leadership that automatically grants you as a leader, decentralized leadership actually focuses on how to centralize people and gather them together to collaborate.
One of the misconceptions of leadership is that we think leadership is a problem solver. Leaders need to take care of everything and provide feasible solutions whenever needed. That is how we mix up with management. The leader only needs to point out the right direction when conflicts happen. They are working to prevent change that misguides the vision rather than deals with the complexity of the organization. Yet we constantly expected leaders to accomplish both directions of the company and resolve the complexity of the work.
Centralized Leadership vs. Decentralized Leadership
In centralized leadership, everyone is supposed to follow the single direction leaders point to. The problem is the team will find out if the direction is actually wrong after implementing and investing resources into it. There is no way to back out later but everyone is in the same boat type of situation.
Decentralized leadership, on the contrary, can discover the wrong direction at an earlier stage. Each separate small unit works its own way to reach the same goal until one or few reach the target. The problem of decentralized leadership is mainly on how to unite many separate individual nodes to eventually collaborate together.
4 Methods in Decentralized Leadership
According to Herman Vantrappen and Frederic Wirtz in their article When to Decentralize Decision Making, and When Not To, they laid out 4 methods to tackle how to manage in a decentralized environment.
1. Responsiveness through immediacy.
2. Reliability through compliance.
3. Efficiency through syndication.
4. Perennity through detachment.
However, there are issues with each method.
Responsiveness through immediacy makes leaders burn out fast. Core members are likely over 24/7 to serve community members.
Reliability through compliance makes the community centralization with rules that carry out through core members. Rather than a decentralized community, rules and guidelines will roll out more to tighten the community interactions.
Efficiency through syndication makes conversation centralized. Everyone wants to share their thoughts and their information receiving asymmetrically compared to core contributors makes them fall out of the conversation loop.
Perennity through detachment makes decisions centralized. Eventually, it leads a community to either vote everything to become an indecisive voting loop or core members take over control to make decisions by themselves before voting and draft proposals with making decisions for the community to vote for which defeats the purpose of voting.
The limited size of the community
Every DAO is trying to accomplish everything at once but forget its mission and vision. Instead of trying to grow out of the community and create more chaotic communities, try to limit members with quality building at first. Once community members fully emerge, then members can decide to grow out.
Produced Equal Opportunity
Try to train members to become core members rather than creating bureaucracy. It is difficult to retain members if there are not enough tasks for each one to grow. Yet, inequality of growth will make each member with a different level of understanding which also jeopardizes decentralization.
Find a Syndication to Communicate
Communication is a key to success. Use tools that fit into the community yet to provide syndication rather than asymmetric information. To help each member to catch up conversation is essential to progress into the next milestone.
Creating tasks mindfully. Do not over expect to accomplish everything at once. Focus on member growth and development is a key to creating a sustainable DAO.
Creating DAO as a space to foster ideas rather than another corporation to exploit everything you can.
Stay tuned for the next part of DAO thoughts!
Starbucks Launches Beta of Web3 ‘Odyssey’ Loyalty Program
The popular coffee chain opened up the Web3 extension to its Starbucks Rewards program to a “small group of waitlist members,” including employees and customers, allowing them to engage in interactive “Journeys” that earn “Journey Stamps” in the form of Polygon-based NFTs. In addition, users also get “Odyssey Points” that will open access to new benefits and experiences in the future, including virtual espresso martini-making classes, exclusive events and trips to Starbucks roasteries and coffee farms.
Sam Bankman-Fried misses deadline to respond to testimony request, now what?
Crypto’s public enemy number one, Sam Bankman-Fried has missed a crucial deadline to confirm his appearance at an upcoming Senate Committee hearing.
The former FTX CEO missed a Thursday 5pm ET on Dec. 8, deadline for responding to a Senate Banking Committee request that he testify at the Committee meeting on Dec. 14. This has set up the possibility of a congressional subpoena.
On Dec. 8, the Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, Sherrod Brown, and ranking member of the Committee Senator Pat Toomey released a statement on the request.
“FTX’s collapse has caused real financial harm to consumers, and effects have spilled over into other parts of the crypto industry. The American people need answers about Sam Bankman-Fried’s misconduct at FTX,” they stated before adding:
“The Committee has requested that he testify at our upcoming hearing on FTX’s collapse, and will consider further action if he does not comply.”
According to the official Committee website, the hearing titled “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers” will be webcast on Dec. 14.
So far, two witnesses have been confirmed to attend the hearing — including American University Washington College of Law Professor Hilary J. Allen, and, Actor and Author Ben McKenzie Schenkkan.
Professor Allen is an academic whose research focuses on the impact of new financial technologies on the stability of the financial system. Ben McKenzie is an anti-crypto actor-turned-commentator who played a troubled teenager on a U.S. television series called “The O.C.”
Messari founder Ryan Selkis commented on the futility of the witness selection:
The Senate Banking FTX hearing is a complete goat rodeo and mockery of the system.
I offered to go even though it would have been a distraction, but instead the Senate opted for the former child star of the OC and a “never crypto” academic.
Another waste of taxpayer $$$.
— Ryan Selkis (@twobitidiot) December 9, 2022
Meanwhile, Cointelegraph has reached out to Ben McKenzie for comment.
Related: Texas enforcers want Sam Bankman-Fried to attend the hearing in February
Other than the Dec. 14 Senate Banking Committee hearing, Bankman-Fried has also been requested to attend a separate hearing called “Investigating the Collapse of FTX” on Dec. 13 with the U.S. House Financial Services Committee.
Bankman-Fried was first requested to attend the hearing via a Twitter post from Congresswoman Maxine Waters, but seemingly declined the invitation on Dec. 5 stating that he wasn’t sure what would happen by the hearing date, “but when it does, I will testify.”
Waters responded on Dec. 8 stating “a subpoena is definitely on the table” should Bankman-Fried fail to voluntarily testify at the hearing.
The collapse of SBF’s FTX empire has initiated a tsunami of backlash from U.S. lawmakers and regulators threatening to drown the fledgling crypto asset industry.
Binance CEO ‘CZ’ Will Teach You About Crypto And The Web3 on MasterClass
On December 8, Binance, the world’s largest cryptocurrency exchange, announced its partnership with Master Class, an online education platform, to launch a course on cryptocurrencies and blockchain for the “crypto-curious” audience. The class will be led by Binance’s CEO and founder, Changpeng Zhao (CZ), and is a joint effort between both entities to build a better ecosystem —and prevent new users from losing their money.
The master class, called “Crypto and the Blockchain,” will last for 3 hours and 40 minutes and will provide participants with the opportunity to learn about blockchain technology, Web3, DeFi, DAOs, and more from leading experts in both the crypto and mainstream finance industries. These experts include Changpeng Zhao (CZ), Emilie Choi, President and COO of Coinbase, Chris Dixon, Founder and Managing Partner of a16z Crypto, and Paul Krugman, author, NYT columnist, and Nobel Prize-winning economist.
Crypto and Blockchain 101 —But Experts Are Welcomed
The master class will cover essential topics on cryptocurrencies that will give newcomers a balanced view of the ecosystem and help them understand the industry’s current state and where it is headed. However, more experienced individuals can also benefit from the class and find valuable insights in each lesson.
Each participant will also have access to a downloadable crypto primer packed with explainers, activities, and illustrations to help them better understand the topics covered in the class.
To join the class, participants must pay a MasterClass membership fee of $15 per month (billed annually) that unlocks access to multiple courses and sessions taught by more than 180 instructors, so users will benefit from a wide spectrum of courses that go beyond the scope of crypto and the Web3, ranging from modeling to gardening with everything in between.
Binance Bets on Education To Improve The Crypto Scene
Changpeng Zhao said that as civilization advances, it is necessary to understand new technologies in order to build business models that would be impossible using the outdated traditional financial system. On the announcement, he said there are new business models that can be built using the novel blockchain technology, which cannot be built using the methods and tools from the legacy financial system.
In addition to the master class, Binance has also announced the launch of six courses and 29 modules through Binance Academy to teach basic knowledge about cryptocurrencies and blockchain. Upon completing the six free courses, users will receive an NFT certificate as proof of learning.
Binance also launched new courses and quizzes on December 7 to allow users to earn rewards in BNB, BUSD, POLYX, and ALGO as Christmas gifts.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
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