Author: Marcus Spallek Date: 7/5/2016
Working Title: Guild Mesh
“Back of a Napkin” Conceptual Overview
The rise of Bitcoin and related digital currencies has effectively created a new asset class for investors. Currently most people buying digital assets are speculating in hopes that their purchase will appreciate in value over time (aka HODLing). Guild Mesh was inspired by the market demand clearly demonstrated by TheDAO’s crowdfunding success, and is an effort to implement the goal of creating decentralized industry specific investment vehicles using tokens and the security of Bitcoin’s blockchain to avoid the security risks revealed in TheDAO’s demise. This proposal suggests a possible open source path forward that attempts to balance the legacy legal system with the incredible potential made possible by digital assets.
The architecture envisioned is an open source project with four main categories of human participants detailed below. The basic unit or “guild” was inspired by the concept of child DAO’s, but to be clear this proposal is NOT A DAO. Rather, each guild has elements of a social network, a balance of power, and economics predicated on tokenization. Examples of possible guilds include: ecovillages, political lobbying, preventative healthcare, cat videos, etc. An analogy to the structure of reddit as a community of communities is appropriate, but this is like reddit for digital asset allocation. Each guild will have it’s economics governed by a digital token, linked to the Bitcoin blockchain for security. So if an investor would like to take some of their Bitcoin that they have in cold storage and put it to work, weather it be for building ecovillages or filming cat videos, this project is designed to let them do so with a structure that will return economic interest, or serve as a charitable donation depending on which guilds tokens they decide to purchase.
Token Holders are anyone who purchases the digital token associated with a specific guild. Ideally each guild will have the option of being treated as a nonprofit for tax purposes or as a for profit guild depending on their focus. Investors can choose to fund a guild by purchasing their token, and can divest at any time by selling their tokens. The Guild Mesh will allow Token Holders to set their voting preference for the following three offices:
Guild Counsel members are the industry specific leaders and experts elected by their guild to serve as the equivalent of board members of a corporation. Their function is to evaluate proposals, vote to fund projects they approve, and offer suggestions for improvements to proposals that are rejected. The voting weight of each counsel member is determined by the number of tokens that have selected them as their representative. This structure is designed as a provably fair representative oligarchy, such that the economic weight choosing a counsel member as their representative is proportional to their voting power. Token Holders can reassign their representation preference at any time, allowing for prompt removal from power of bad actors. The details will require additional input from experts on voting systems to prevent gaming of the system. Guild Counsel members also serve their communities by curating an industry specific network of knowledge and contacts to connect entrepreneurs with resources that will help them accomplish their proposals and return value to the guild by repaying their loans. Guild Counsel members should receive a salary to incentivize highly qualified leaders in each industry to participate.
Executors are lawyers in Zug, Switzerland or a competing crypto friendly regulatory region. They will function as legal counsel that will serve as the bridge to the legacy legal and economic system with the intent of maintaining legal compliance. Every proposal that passes the Guild Counsel must next get a thumbs up from the Guild Executor to proceed. In addition to verifying that the proposal is legal, the Executors must also agree that the proposal serves the intent that the guild was created to serve. The vision for this aspect of the system is that every crypto friendly regulatory region that wants to can form a legal cartel that can compete against their counterparts in other regulatory regions. Similar to Guild Counsel members, Executors must be paid for their services. This will result in funding global crypto regulatory arbitrage and development. Some guilds will chose the least expensive executors, but the incentives should result in an economic evolutionary force to develop and discover the best legal frameworks for governing decentralized investments.
System Administrators are the nerds required to build and maintain the system. Also they will be the final hurdle to any proposal that has passed the Guild Counsel and Executors. Once a guild has elected its counsel members, they have voted to fund a proposal, and the Executors have given it a legal thumbs up, the System Administrators must give it a final green light verifying that a technical implementation is possible to advance the intent of a proposal. Similar to Executors, System Administrators must be economically incentivized, resulting in globally distributed competing teams.
Guild Mesh is a conceptual structure that could become an open source project. The intent is to allow digital assets to be allocated to serve whatever purpose an investor chooses. Both for profit and tax deductible non profit structures for decentralized investment could be developed using digital tokens and social networking while financing global crypto regulatory arbitrage and development.