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Long Term Planning and DACs

Karl_SchroederKarl_Schroeder Member Posts: 37 ✭✭
in Smart Contracts and Dapps
One critical flaw in shareholder-controlled corporations is that they have a strong attractor to short-term profits at the expense of long-term growth and stability. As a foresight consultant I typically find most corporations completely unable to think or plan more than two years ahead. How can we avoid this phenomenon with DACs? Or, to flip it around, how can a DAC reward long-term strategic thinking among its shareholders?
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Comments

  • LeanLean Member Posts: 28 ✭✭
    Good point Karl. We have to look on smart-contracts and the blockchain as possible solutions for long-term vs. short-term.

    Also, I think DACs maybe will have a different mentality. Maybe short-term and long-term will have not all the sense they have today... who knows? I'll keep an eye on the first DACs and hope to create and experiment with one soon.
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  • RussRuss Member Posts: 4 ✭
    @Karl_Schroeder

    Perhaps in the economy of decentralize organization, users could gain extra "corp-coins" if they plan projects in the far future--and successfully tie mini-projects to that end-objective?
    I can imagine a whole mini-economy of time and influence "corp-coins" developing as a significant part of the operations of future corporations...
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  • giannidalertagiannidalerta Miami, FLMember Posts: 76 ✭✭✭
    Different Vesting Periods? Time released shares?
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  • Karl_SchroederKarl_Schroeder Member Posts: 37 ✭✭
    Ohh, cool ideas. I'm still thinking about tying values to things like carbon prices, ecosystem services etc., but it's also interesting to consider purely algorithmic approaches to rewarding long-term thinking. Simply slowing down certain kinds of transaction could do it. But Lean is probably right that short and long term will mean different things--if the famous essay "The Nature of the Firm" is right and the efficiencies of protocols like Ethereum dissolve companies as we currently understand them, then we just have a kind of economic nervous system instead. And the question then is, does it just have a fast-twitch response, or is there a planning function?
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  • wasthatawolfwasthatawolf Member Posts: 3 ✭
    Since the release of a new DAC on Ethereum won't require new miners then won't the release be accompanied with an IPO-like fundraiser (like Mastercoin and NXT)? Isn't the ability to buy equity at the beginning the long term incentive to maintain and grow the DAC's value?

    I imagine DACs built on Ethereum will still need to go through some type of fundraising, although the more I think about it if it's backed by ether than maybe they won't need to fund raise? I'm having trouble reconciling this...
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  • StephanTualStephanTual London, EnglandMember, Moderator Posts: 1,282 mod
    @wasthatawolf, DACs don't *require* funding to exist, however they can choose to raise funding if they wish to do so. For example, a large scale enterprise project could be started by entrepreneurs that would then need funds to hire developers.
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  • kylinkylin Member Posts: 10 ✭
    No more discussion
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  • mquandallemquandalle FranceMember Posts: 50 ✭✭
    More dividends for long time holder?
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