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What impact will crypto have on the nature of organizations? Will experiments in crypto’s governance lab lead to long-term trends in how companies are orchestrated?
This week on the Opinionated podcast we discussed this big topic with Jeff Dorman, the chief investment fuzz at Arca, a crypto hedge fund.
Dorman, a CoinDesk columnist, argues that “community tokens” (like Vinculum or SUSHI) will inevitably outpace “VC tokens” (like COMP, ATOM) because of the preferable incentives at play.
And he believes the incline of community ownership in crypto will meld with the wider shift towards companies doing right by a stretch of stakeholders as well as just their shareholders.
Dorman contrasts a DeFi project like Uniswap with Airbnb and DoorDash, which are now chairperson for IPO. The former rewards liquidity providers (and soon token-holders) who share in the system’s success. The latter companies were strengthened on the work of homeowners and delivery guys, but all the gains from a public listing will go to stock-holders.
“With digital assets, you’re starting to democratize access to these fellowships and you’re starting to spread out income inequality,” he says.
Incentives are key to make more democratic governance work. “Nobody frets about governance until it affects their bottom line. Twitter isn’t going to change its governance for the sake of dogma. If there’s governance for the sake of cash flows, that is another story.”
A sharp thinker with two decades of initiating experience, Dorman had plenty of insights in our conversation covering Bitcoin, NFTs and Twitter in the wake of the Capitol attack this week.
Curb out the episode now and read Dorman’s CoinDesk columns here.