{"id":770,"date":"2023-04-05T08:52:53","date_gmt":"2023-04-05T08:52:53","guid":{"rendered":"https:\/\/www.growth-dao.com\/?p=770"},"modified":"2023-11-30T10:42:50","modified_gmt":"2023-11-30T10:42:50","slug":"growth-daos-web3-thesis","status":"publish","type":"post","link":"https:\/\/www.growth-dao.com\/2023\/04\/05\/growth-daos-web3-thesis\/","title":{"rendered":"Growth DAOs Web3 Thesis"},"content":{"rendered":"\n
Tokenisation will revolutionalise the ownership and value distributions across human organisations.<\/p>\n\n\n\n
The realm of Web3 is no longer just world wide, it\u2019s transformed into the \u2018metaverse\u2019. As the vastness of the internet expands, we wanted to be especially clear on the scope of our thesis. Growth DAO is particularly interested in the potential of blockchain technology for organisations (business) and the wider impact on economics and finance.<\/strong> Therefore we\u2019ve built our ideologies around DAOs (Decentralised Autonomous Organisations), DAO tooling, DeFi (Decentralised Finance), smart-contracts, new infrastructure, protocols and their governance. We\u2019ve discounted the impact of our thesis on the gaming industry, metaverse in general and multi-media NFTs. We want to analyse the impact of the blockchain on pre-existing assets such as equity, cash, art and human capital. <\/p>\n\n\n\n Web2, what a journey it\u2019s been. Since the end of \u2018Web1\u2019 at the turn of the century, internet users have shot from 600m to around 4.5bn (BDC consulating<\/a>) – well over half of the global population. It\u2019s no surprise that the hallmarks of Web3 give power to the people. Many people are comparing the adoption of Web3 today to the adoption of the Web1 internet. If this is the case, we\u2019re about to experience the wave of innovation that hit us in the early 2000s. It\u2019s just this time the boom-bust cycles appear to have hit their half-life. So the next upswing will could be akin to the rise of Facebook, Google, Apple and Amazon and happen in 2-4 years in Web3 .<\/strong> The Web3 movement is predominantly a social revolution of the web, taking power back from globalised companies dictating our usage of an inherently open sourced infrastructure. <\/p>\n\n\n\n TLDR; Here are the questions running through our minds. <\/p>\n\n\n\n What does blockchain do?<\/strong> Enable immutable ownership of digital assets. <\/p>\n\n\n\n What is the second biggest asset class?<\/strong> Equities. <\/p>\n\n\n\n What <\/strong>really<\/em><\/strong> are equities?<\/strong> Shares in the ownership of public organisations <\/p>\n\n\n\n What is an organisation? <\/strong>A virtual entity that humans have imagined and created<\/p>\n\n\n\n What is the future?<\/strong> Organisations on the blockchain <\/p>\n\n\n\n What\u2019s that called?<\/strong> DAOs (Decentralised Autonomous Organisation – What is a DAO<\/a>)<\/p>\n\n\n\n Companies are made up legal constructs, incorporated in a system of defined rules. A brand doesn\u2019t physically exist, a company name was made up by a founder. Humans perceive value in these entities based on pre-agreed constructs within nationalised legal systems<\/strong>. In many countries you still have to issue a signed (paper?) share certificate to anyone buying a share in your organisation. <\/p>\n\n\n\n Mental right? Surely this will be replaced by blockchain technologies. It\u2019s more efficient, more reliable, more secure, easily trackable and shareable. Organisations can issue shares (tokens) more easily and seamlessly give them away. No longer will the legal structures be geared towards directors and institutional investors. Employees will benefit from actual ownership, not just \u2018options\u2019.<\/strong><\/p>\n\n\n\n I know what you\u2019re thinking, will the centralised powers relinquish their stranglehold on the regulation? There is a lot of red tape and pitfalls around securities! Perhaps they will adapt once they\u2019re pushed into it or maybe there will be a new system for Web3 built from the ground up. <\/p>\n\n\n\n A new, globalised, crypto-native system will need to be created to handle international disputes, taxation and public goods. Now we have a globalised, decentralised currency (Bitcoin), isn\u2019t it time for the other governamental levers to become globalised?<\/strong> The global taxation system is a mess, global conglomerates are taking advantage of governmentally created tax havens and benefiting from lenient legal systems. The playing field isn\u2019t level\u2026.yet. <\/p>\n\n\n\n This may be too big picture, utopian thinking, but platforms are already popping up to tackle similar challenges. Take q.org<\/a> for example, they\u2019re powering a decentralised legal system and economic structures for networks, baked into code. Also, Jur.io<\/a> are creating the building blocks to build globalised societies. It might be a few years before serious progress is made and we\u2019re confident that the governmental structures won\u2019t roll over in a hurry. But, they\u2019re so inefficient and bloated with bureaucracy, could they be the next casualty in the blockchain revolution? <\/p>\n\n\n\n At an economic level, we\u2019d love to see traditional stock exchanges be replaced by something akin to a Decentralised Exchange (DEX). New legal, accounting and financing systems need to replace the bureaucratic processes for companies to \u2018go public\u2019 on a stock exchange. It\u2019s fairly obvious that the tokenisation of organisations will supersede this antiquated system. It\u2019ll be much, much easier for organisations to sell off shares\/tokes – increasing investment, activity and creating an equitable IPO market. <\/p>\n\n\n\n Blockchain native (private equity) investors will underwrite organisations looking to raise capital on-chain.<\/strong> Organisations supporting in this space will no doubt be billion dollar enterprises pretty quickly. <\/p>\n\n\n\n Human organisational theory suggests a new wave of organisational structures to empower and reward the individual. Old organisational paradigms dictate a centralisation of power amongst executives and board members. <\/strong>These owners set the budgets and strategies, based on high-level information. Swathes of middle management are placed to carry out their directives and often left behind in times of change. And we\u2019re in a time of change. According to Frederick La-Roux (Reinventing Organisations), this dominant hierarchical organisational structure has encouraged short-term thinking, corporate greed, overconsumption, and the reckless exploitation of the planet\u2019s resources and ecosystems.<\/p>\n\n\n\nThe state of play in Web3<\/h2>\n\n\n\n
Our core theses<\/h2>\n\n\n\n
Thesis 1: Equity ownership will become tokenised<\/h3>\n\n\n\n
Thesis 2: A globalised tax and governance system <\/h2>\n\n\n\n
Thesis 3: the future of work will be driven by self-managing organisations <\/h2>\n\n\n\n