# Open Source and Public Goods: How Can They Reshape DAO Governance? | Alex Netto, Daniela Zschaber

- Channel: [Ethereum Denver](https://streameth.org/ethereum-denver)
- Date: 2024-10-09
- Duration: 12:36
- Topics: blockchain, web3, ethereum, Entertainment
- Watch: https://streameth.org/watch/yt-2zbh7GRUV3E
- YouTube: https://www.youtube.com/watch?v=2zbh7GRUV3E

## Description

My idea is to explain how governance projects for DAOs that are open source and focused on being public goods can reinvent DAOs. This is not only in terms of decentralized and mutually collaborative internal participation in DAOs but also in their entire structure and rules. This approach could potentially prevent unexpected forks, Sybil attacks, or any other attacks on the treasury in the future.

- Discuss the importance of DAO projects aiming to be public goods, meaning assets and resources accessible to everyone.
- Address how transparency and accessibility can be promoted through open-source projects, making DAOs more inclusive.
- Discuss how participants' incentives align with the DAO's long-term objectives, minimizing conflicts and maximizing collaboration.
- Explain how the open-source (with mutual collaboration) approach allows anyone to contribute to the development and improvement of the rules and structures of the DAO.

## Transcript

introduce Daniela and Alex take it away thank you everyone uh hi um I'm Denny I'm BL F pmm and today I'm going to talk about open source public goods Dow governance and yeah present yourself okay uh I'm Alex uh founding member of blogfall today um developer executive director and yeah happy to chat with you about what what we been doing and yeah take it off Danny yeah thank you um yeah so let's talk about public goods first um what is public goods the first of all we need to talk about the n excludible and non rival uh characteristic of the public goods such as Sunset common knowledge or laws um I I could dive uh into all these topics but I think we don't have enough time to do it uh so think about that like public goods uh nonrival non excludible and companies doesn't like companies don't like to build public goods because they think that uh public goods uh there's no rewards they don't deliver rewards because uh they are not getting profit of it or direct profit but this is not true because think about uh build a company without laws without those public goods uh it can be tough uh if you're building Dows you can see that it's very very difficult to build a dow without uh regular you know without regulation and so it's not true that companies don't get any benefits from public goods um mainly when you're talking about M when it comes to web3 because uh this ecosystem is built for communities and individuals so if you're doing a public goods if you're building up public goods in this ecosystem probably you're going to get uh any benefit in a long term uh and I have some uh examples um very soon and companies don't like to do it because they are afraid of the Free Riders uh so people that are not paying for that public good but are using it um getting profit from those public good um but we have the parate efficiency uh in this ecosystem it's very nice to talk about parate efficiency because it means that uh you can get benefits from the public good um but other people will not get any benefit but nobody will lose so there's a public good you can benefit from it I cannot but I'm not losing anything um and let's not forget about the utility Theory all the public goods uh are endorsed by the utility uh Theory which means that if there's a public good if people are using that it means that we are providing utility so if a dow uh is building a public good people AR using it it's another utility uh pred for that Dow uh here um I put some you know brief explanation about the utility Theory So based its belief upon individuals preference it is a theory postulated in economics to explain behavior of individuals based on the premise uh people can consistently rank orders their choice depending upon them preferences it's a brief explanation so um but how does Private companies benefit from public goods uh as I said before uh imagine build a company without laws or without public transportation so it's not direct but the companies get benefit from that so DS have a lot to benefit as well uh mainly because uh it comes more direct when we're talking about this ecosystem uh built for individuals built for communities so think about uh optimism for example optimism is doing very very well um building public goods and financially in public goods and I I I can I can talk about the season five for example they are providing money for people to build for example ZK uh private voting and they they're going to do uh uh uh they're going to finance these public goods they're going to use that but they are not only using that they are not only financing uh this tool for them they are also enhancing all this ecosystem all the web three uh through that which is amazing so we are connect the wires of the ecosystem so optimism is doing that they are helping the ecosystem and probably uh they will get they will participate in a better ecosystem in the long term um well so final words from my side this isn't just about enhancing governance too only it's about fostering active uh participation from the whole ecosystem enabling more uh uh decentralized resilient governance from the project start but now uh uh Alex has a great explanation he will explanate uh he he'll do a very nice explanation Through Math go ahead okay now it's better uh yeah I'm a I'm a bit nerdy so I like to explain things uh using math and first let's begin with an interesting question uh so what's the social valuation of a company what I mean by that is every company has a financial valuation but well companies are made by people and the market have uh Tendencies uh Financial valuation you have like Tendencies but uh there is a floor price when you you talk about people because brilliant people are like rarely uh the like brilliant people they they they stay uh uh brilliant brilliant and if you have the the ideal uh environment for that and the ideal tools for making this people to organize then you have like a a floor price of this organization that's like social it's not about financial uh so I was jamming a bit around uh math and trying to express this idea of how how we get into this uh social valuation of the company well uh the first aspect is people so this part of the equation it's kind of like the sum of people the second part is about how does people interact uh so in sna flow we have a centralized organization it's like top down and the second that is the Met call flow it's more uh common to to know about it uh so it's more like PE peer-to-peer Network and then you have have readed la readed la is it it fits more the organization ecosystem because in larger organization you have like subgroups and read La is not just describing the communication and interact interaction between uh per peers between persons is also describing the interaction between uh persons inside this group groups and groups and it's more complex than just peer-to-peer uh so because of that uh when I express it efficiency of coordination uh that's express it in uh to n Al like the exponentiation term uh so the more people you have the more like it's harder to coordinate right and then the third aspect of the social valuation of an organization is the value generation for society uh so that's interesting well if you have a team of brilliant people and they know how how to coordinate but this idea doesn't like solve something big for Humanity or like it's not it's not something that people will use and and and and uh well generate value for the society then perhaps the social valuation of the company isn't so high uh and the idea here is uh expressing this through the formula in a multiplication way so you have here in Infinity time 0 is zero because it's about the social impact that this organization is having well now let's describe better efficiency uh you have tools so that's the way uh people organize or like tools they use for uh organize themselves perhaps uh governance tooling perhaps uh notion called B1 example uh the second one is Clarity of the mission so having everyone having a clear direction of what to execute and where are we going that's really important and protocols cultures and routine uh that's really important for like making sure we are on this mission on this execution in in in in a right way uh well C andp are parameters we can we cannot control from outside it's something that's unique for each organization but tools it's it's something that um you can you can use what's around you can use public goods you can uh use open source so tools are the only parameter when where you can leverage from what other organizations build better tools especially for Dows means lower lowering the entry barrier for creating new organizations and more efficiency and productivity so uh yeah having better tools mean means having also like a higher market cap of like new organizations uh uh and then you can start creating more being more create more creative for uh uh um people it's easier for people to to spin up their organizations uh here is a quick example so down here you can see the infr oh by the way I hope my mom don't see the presentation because my my letter is really bad um so in the lower part you have infrastructure tooling for organizations when you're building that all organizations Above This are uh are benefiting from these tools and then you also have specific tooling inside those organizations for example uh n s if we build a public good for ens it's perhaps is not benefiting balancer or optimism but it's leveraging the organiz organizations that are above this ecosystem uh so I will divide uh this public goods in in in two ways more in our our perspective one is for all digital organizations and then you have the specific tolling uh and there is something really beautiful Happening Here because well the infrastructure layer is helping the layer above that is helping the layer above and perhaps taking again the example ons rainbow name has Nam Stone 3D NS these guys will all also build public goods that can benefit the ecosystem itself uh so it's it's it's pretty cool to see this and that's only possible because of Open Source that's a really important uh part of it so that's our invite build on public goods [Applause] yeah yeah I don't know if any you guys have any questions so if yes raise your hand if not just clap your hands again it's okay thank you don't forget to build in public goods bye another round of applause for Danielle and Alex thank you so so much we love