Daniel Coffeen
2 min readMar 17, 2022

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So, in a DAO, there would most likely be no traditional corporate structure — no board, no CEO—as the point of a DAO , as the name suggests, is to be decentralized. This means decisions would be made by the community who would also choose a team to build, market, maintain, etc the network. How voting works, who has what rights, etc would be determined by that DAO.

As for how revenue is generated and the network maintained: again, that would be proffered by the DAO as there are an infinite number of ways to structure it.

But here's a simple one: make it work just like the dreaded FB — that is, funded by advertisers. The difference would be: a) as participants own their own data, they can choose not to sell it; and b) the majority of the revenue would go directly to those who opt in....but let's say 25% goes to maintaining the network. That's a very simple way to think about it.

As for network validators, they could be rewarded by transactions fees or the inflation model. The point is: there are SO MANY ways the financial aspect can be incorporated into the behaviors and incentives of that social network. For instance, upvoting and downvoting might cost users as a way to disincentivize gaming the system. Posting, too, might cost a nominal amount to disincentivize spam. Meanwhile, people with popular posts might get paid while reposters, too, would se a return for spreading the word. This way, "influencers" are rewarded by the network from revenue generated through participant activity.

In any case, this is precisely the work that needs to be done — designing these models to see which works best for participants. Hope that helps!!

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Daniel Coffeen
Daniel Coffeen

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