Could a DAO Build the Next Great City? | Scott Fitsimones | TED

Summary

In a bid to circumvent traditional bureaucratic hurdles, a group of internet enthusiasts founded CityDAO, a Decentralized Autonomous Organization (DAO) aimed at purchasing land for collective community use. By pooling cryptocurrency and leveraging blockchain technology, they acquired 40 acres near Yellowstone National Park. DAOs empower members to collaboratively make decisions, share ownership, and propose projects, unlike conventional companies. CityDAO exemplifies this innovative model, with plans for transparent operations and community-driven development. This approach could reshape economic opportunities, allowing broader participation in ownership of assets, such as real estate and sports teams, fostering a new era of decentralized governance.

Takeaways

• 🏙️ Starting a new city involves significant challenges, including land acquisition, bureaucratic processes, and community engagement.
• 💻 CityDAO is a decentralized autonomous organization (DAO) that facilitates collective decision-making and land ownership using blockchain technology.
• 🤝 DAOs operate without traditional hierarchies, allowing members to propose projects and vote on decisions, promoting a cooperative management structure.
• 🔗 Blockchain technology enhances transparency in transactions, enabling quicker processes like land buying and permitting through smart contracts.
• 💸 CityDAO raised over six million dollars through the sale of governance tokens, granting holders voting rights in organizational decisions.
• 🌐 Community engagement is fostered through platforms like Discord, where members collaborate on projects and discuss proposals in a decentralized manner.
• 🚀 DAOs have been applied to various innovative projects, including funding research, purchasing sports teams, and acquiring significant cultural assets.
• ⚖️ While DAOs provide innovative solutions, they face challenges such as the need for consensus and navigating regulatory frameworks.
• 🌱 The potential for DAOs to democratize ownership in real estate and technology could reshape economic opportunities for a broader audience.
• 🌟 The future may see DAOs play a vital role in addressing large-scale problems and facilitating collaborative efforts to build communities and cities.

Q & A

What are the main challenges in starting a new city according to the transcript?

Starting a new city involves surveying terrain, obtaining permission from the state, purchasing land, and convincing people to relocate, all while dealing with the limited availability of prime land.

How did the speaker begin their project to start a new city?

The speaker utilized social media, specifically Twitter, to connect with individuals around the world who were interested in collaborating on the project.

What is CityDAO?

CityDAO is a decentralized autonomous organization (DAO) that was formed to collectively own and manage land, utilizing blockchain technology for transparency and decision-making.

How do DAOs differ from traditional companies in their management structure?

In a DAO, members collaborate as peers to propose and vote on projects, contrasting with traditional companies where a CEO and executives dictate direction and decisions down the hierarchy.

What frustrations led to the creation of CityDAO?

The speaker experienced significant frustrations with city bureaucracy while trying to navigate permits for a startup aimed at optimizing empty parking lots, highlighting the inefficiencies of traditional processes.

What advantages do smart contracts provide in the context of a DAO?

Smart contracts enable faster transactions and reduced bureaucracy by automating processes like land purchases and loans, which would traditionally take a long time.

What role does Discord play in CityDAO's operations?

Discord is used for community calls, idea sharing, and project proposals, allowing members to collaborate and communicate effectively within the organization.

How did CityDAO raise funds, and what were the governance tokens used for?

CityDAO raised over six million dollars from around 5,000 people through a governance token called 'Citizenship', which grants holders voting rights on DAO activities, including land purchases.

What notable projects have DAOs undertaken, as mentioned in the transcript?

DAOs have initiated various projects, including attempts to buy an original U.S. Constitution copy, acquiring an NBA team, funding research, and even raising funds for the Ukrainian defense effort.

What potential does the speaker see for DAOs in the future?

The speaker believes DAOs could democratize ownership and management of significant assets like real estate, sports teams, and fine art, providing more people with opportunities to participate in economic benefits.