How Aragon Manages DAOs with Luis Cuende

Humans organize into groups. There are lots of group types: religions, corporations, national governments, state governments, citizenries, clubs, musical bands.

Every group has governance. Governance defines the rules and the ways that rules change. The United States requires citizens to pay taxes. A corporation requires you to show up to work, but they have to pay you a salary.

Most groups today are managed by people. If you break a law, you have to go to court and sit in front of a judge and jury, who decide how you will be punished. If you work at a corporation, and you have a problem with your manager, you go to HR to arbitrate it.

These organizations are centralized. There is a governing body that sets the rules. If there is any ambiguity, the person who happens to be in power gets to decide how the ambiguity is resolved. Power is centralized in that governing body.

These organizations are run by people. The governance of these organizations is enforced only to the extent that the human government carries out its duties.

A decentralized autonomous organization is a group that can run with neither centralized nor human intervention. It is decentralized and autonomous. It is a DAO.

Aragon is a platform for running and managing decentralized autonomous organizations. Luis Cuende is the founder of Aragon and joins the show to explain what a DAO is and why people want to create them. We also talk about the engineering of Aragon and the structure of its ICO—which raised $25m via a token sale.

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