DAOs & Decentralisation

When the core contributors set out to build a fully autonomous, permissionless investment infrastructure-as-a- protocol, a social good owned and operated by its own community, it was clear many problems would need to be solved:

• How to disrupt traditional venture capital using Web 3 principles and building block.

• How to provide access to early stage deal-flow.

• How to engage the community at all stages of the process.

• How to protect the community, investors and protocox i how to galvanise and guarantee community and investor involvement.

• How to tackle the many issues plaguing online communities - the tragedy of the commons, low governance participation or its counterpoint, voter fatigue, etc.

• How to deal with trust and reputation, responsibility and leadership.

• How to remain strategically aligned while empowered tactically and trustlessly, and at the same time to minimise regulatory capture as much as possible in as much of the world as possible

From the outset, WLTH knew a decentralized protocol alone was insufficient. A solid foundation was needed to address key challenges, and CW believes the special solution now being built provides the answer.

The Problems With DAOs

For WLTH to succeed as a responsible and sustainable platform, active participation from investors and $WLTH holders is essential. To truly democratize opportunity, its solutions must be social, inclusive, and equitable—not just technically and economically sound. This requires overcoming common DAO issues like voter fatigue and corruption, while also challenging the typical 1:9:90 online engagement rule to foster a more active community.

How do we collectively come together to counteract the Tragedy of the Commons?

“The tragedy of the commons is a metaphoric label for a concept that is widely discussed in economics, ecology and other sciences. According to the concept, should a number of people enjoy unfettered access to a finite, valuable resource such as a pasture, they will tend to over-use it, and may end up destroying its value altogether. Even if some users exercised voluntary restraint, the other users would merely supplant them, the predictable result being a tragedy for all.”

Vitalik Buterin’s post ”DAOs are not corporations: where decentralization in autonomous organizations matters” calls out yet another issue - namely, how to handle the succession problems in a distributed systems when key community participants leave.

DAOs are notorious for their lack of leadership and poor quality control. How to maintain equitable, reliable standards for all? How to provide guidance and structure and mentorship for all?

Like every system ever designed, how humans in the real world interface with the system and each other is critical. Finding a balance between freedom and open governance and efficiency will be a key challenge in years to come.

‘DAS’ As Our Alternative To ‘DAO’

Unlike a DAO (Distributed Autonomous Organisation), a DAS (Distributed Autonomous System) is designed not to be an organisation. It is a self-sustaining system run by smart contracts on a global, uncontrollable computer. The goal is such extreme decentralization that its participants have no more legal association with each other than two independent plumbers working in the same building.

Legal Decentralisation, DAS And The Future of Community

In WLTH's DAS, every action, from proposing initiatives to certifying work completion, is transparent and accountable, secured by the immutable nature of blockchain technology. The system's design ensures that no single entity controls the DAS, fostering a truly decentralised environment where power and decision- making are distributed among its participants. This structure not only enhances security and resilience but also aligns with the ethos of creating a fair and equitable financial ecosystem.

The WLTH DAS is not just a platform for investment - it's a vision for the future of decentralised finance, where technology and community collaboration converge to create an inclusive, efficient, and transparent financial landscape. It's a system where every participant has a voice and the power to shape the future of finance, making it a beacon for innovation and empowerment in the digital age.

There are three main aspects to our distributed autonomous system:

• A legal decentralisation strategy.

• Activity-based rewards program.

• The DAOS (Distributed Autonomous Operating System).

Legal Decentralisation

A robust and innovative legal framework to build our strategy on based on the premise that an algorithm- driven autonomous system, taking inputs from protocol participants as well as data or AI-sourced inputs, can manage the activity and, coordinate involvement and incentives of the participants in such a way as to minimise regulatory capture around the world.

Collaborative, autonomous, automated processes as a form of management instead of people. And it so happens that the process of decentralising legally aligns very nicely with the plans for progressive decentralisation.

In brief:

• The protocol collects royalty fees for use of the intellectual property.

• The actors in the system all function as service providers to each other and to the protocol, under short term legal agreements.

• The community itself, each acting their own behalf, participating in a decentralised protocol provides a sophisticated legal framework.

• The participants are rewarded proportionately for their service.

• The token holders and community direct the treasury, and enact the will of the community via the DAOS and according to the principles of the Manifesto.

• The token holders and community benefit from the smooth operation of the platform and protocol.

It is nothing less than by the 99%, for the 99%.