Mtg Dao, DAO, Andrew discussed on Opening Arguments

Opening Arguments


Down. Down. Okay, Andrew, I can't wait for you to explain exactly what happened here, but from the looks of it, we had some sort of NFT NFT people. Some sort of NFT company that was like utilizing magic the gathering IP and then they got a cease and desist. It seems delightful. Tell us what went on here. It is even more delightful than it seems. I want to apologize in advance. I did a lot of research on this. I am sure I am going to get some of this crypto stuff wrong. So, you know, in advance, open arguments at Gmail dot com when I have somehow managed to make an error, but I put a lot into this. Okay, here's what we start with. We start with MTG DAO, a DAO is a decentralized autonomous organization. What does that mean? Here's what it means in plain English as best as I can do. It's an effort to take the rules of corporate management and then write them into software. And that's it. That's what a Dao is in general. That's so so a DAO is not a real thing. It is not a legally recognizable organization for obvious reasons that we're going to make kind of even more obvious. But the goal is to have everything that the organization because you can't call it a corporation does be public and then stuck on a blockchain. So put yourself in the mindset of one of these anarcho syndicalists. Well, is this an effort to democratize, is this like seizing the means of production a little bit? Like instead of having corporate infrastructure with the CEO and blah blah blah, is this an attempt at a worker owned thing? It is certainly not a worker seizing the means of production. It is a modification to normal corporate governance. So why don't we start with that? Under normal corporate governance rules, one share is one vote. Put an asterisk by that because there are non voting shares and you can write whatever you want into the structure of the articles of incorporation and we do that for my business clients all the time, but basically that's kind of the idea. One share, one vote, you buy more shares, you get more votes. This does nothing to change that. Except that instead of one share being one vote, this is you take NFTs, you turn, you turn the NFT, the non fungible tokens. They then become each one of those is your one token becomes one. That becomes the replacement for stock. Exactly right. Oh, so that doesn't really do anything. It absolutely does nothing to democratize. It makes the problem of if you were super wealthy and control the corporation, you get to say what happens, it makes that more acute, right? Yeah. And the idea is that you don't need any corporate governance at all because everything can just be decided by vote and one token is one vote. So that's why I started with the anarcho libertarian utopia, right? The idea is that they look at so you and I look at a corporation and go, well, the problem is that a corporation employs 10,000 workers who get no votes and the guy at the top gets to make all of the decisions and maybe that should be more equitable. And sometimes the guy at the top gets in trouble if they do something wrong for the shareholders. If they mess anything up for the shareholders. So this is like, let's just have the shareholders run the whole thing, but it does nothing about the employee. That problem of the employee is getting a say or getting more of the revenue. Correct with an asterisk. So I want to do my very best to steal bought the other side, even when the other side is crypto. They would argue that there are mechanisms that will enable you to earn more NFTs, the harder the work you put into the DAO. How that operates, I do not know. I can actually see this being a good idea if and again, we're not talking about the MTG one. This is just general whatever this DAO structure is. Forget the magic gathering for a second. I could see this actually working if the people who hold those non fungible tokens are the workers are the, you know, like so then it would be like a worker owned, they would all have this, it would be the equivalent of like the company being owned by the workers because they controlled all the stock essentially. So I could see that being a good idea. Well then let's make the crypto bro argument a little stronger because what they would say is, yeah, yeah, yeah. Not only could you have all the employees own the NFTs and then get to vote in order to get admitted into the DAO you have to have a crypto wallet. Yeah. I'm doing a certain motion with my arm that I'm not going to describe, but yeah, that part all is nothing. But let me give you their argument. They say, look, all of those transactions are on the blockchain. And then every thing the DAO does as a matter of corporate governance instead of being written down in the corporate minutes would be recorded on the blockchain, right? So you know exactly who to hold accountable and something something something. Yeah. All right. Instead of being in the shared drive, it's in some stupid thing that doesn't, that doesn't really change a whole lot. Right..

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