In order to understand bitcoin you need to understand money, and in order to understand Rho you need to need to understand corporations. Corporations are groups of people getting together for an aim and for that this group can make one decision and everyone can know what that decision is.
And thus can own stuff, and everyone can know who is entitled to make decisions about that stuff.
A single individual can produce a basic shelter enough food to feed himself and maybe a little bit of the others. However in order to produce a civilization, you need individuals work in groups and produce more and better.
An individual puts his labor to earn money and if he owns a capital gets profit, if land he gets rent. A corporation on the other hand, tries to own more capital to get more profit and also more land to get more rent. And it mostly pays money for the labor labor it needed along side goods it needs for the production.
That makes it clear that in order to produce more for a better civilization corporations are essential.
The enterprise, obviously is indeed a social construct, but there has to be a moral and social obligation on the book keepers that the books reflect a reality that is real, not socially constructed.
You cannot socially construct profitability, capital, and assets, hence the Great Minority Mortgate Meltdown. And you cannot program computers to reflect Gods creation. Humans have to do it.
DAO stands for “Distributed Autonomous Organization”.
But “distributed” is generally conflict with “organization”. Daos that actually make a profit (and all the others are just scams) continually have to make decisions that require immediate human judgement, case by case.
A dao is a group of people acting as one – a particular case of the corporation and the enterprise. And the dao coin is a share in the joint stock publicly traded enterprise.
But it is very difficult and dangerous for outsiders to invest in the dao enterprise because it is not clear who the board is, who the ceo is, how much capital it actually has, or if it is profitable. A dao does not have books, at least not official books. You cannot have an enterprise without old type book keeping, seventeenth century book keeping.
A successful DAO usually has someone who does the kind of stuff a CEO does, a group of people who do the kind of stuff a board does, and people keeping track of money in and money out, but its all informal, vague, and vulnerable to scamming, which also makes it difficult and dangerous for outside investors to invest in the DAO coin.
Corporations work (when they work, which is of course not always) because the share holders appoint people whose books they are inclined to believe. Problem is that the cohesion of a legal corporation derives from the state. You know who the directors and CEO is because the state records this and makes the information available. The shareholders agree on the board, but this becomes official because registered with the state. In Nakamoto’s terminology, the state is functioning as a centralised time stamp server. And similarly, that is how you know what the books say. Which is why when you are capitalising a company, you need a company bank account in a bank that the state has officially licensed as a legitimate bank. And to get a company bank account, you need to register your company with the state.
All this legality and registration, so that a group can act as one in pursuit of return.
They absolutely do.
We want to do all this stuff with Nakamoto consensus, rather than centralised consensus, and crypto currency rather than registered bank accounts.
So, the way we do it is that the company name is a Zooko identity, whose public key is an n-of-m distributed secret of the board.
And the blockchain has to show who the board is, and a majority of ownership who owned dao coins (unlike corporations where you own shares).
Every so often, say perhaps every block height that is a multiple of 2^12 everyone who controlled the public key of a utxo of a dao coin at that block height becomes eligible to cast a vote for the n-of-m key that of any key whose owners want to become the dao board.
If a majority of ownership votes for a key before the next block height that is a multiple of 2^12 rolls around, then that becomes the new board. If nothing happens, and something will very rarely happen, the old board continues to be the board.
The board from time to time appoints a CEO, the CEO appoints company officers, you know the board key because the blockchain attents that such and such a key is the key of the nickname, you know the ceo because he has a key signed by the board whose nickname is DaoName/CEO, and you know a corporate officer because his nickname is signed by the CEO as DaoName/CEO/Corporate role.
reaction.la gpg key 154588427F2709CD9D7146B01C99BB982002C39F
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