We’ve passed peak corporation already — Michael Anderson, Framework Ventures – Cointelegraph Magazine
June 11, 2021. Summarized by summa-bot.
Compression ratio: 26.6%. 3 min read.
Tech investor Michael Anderson from Framework Ventures believes DAOs are on track to replace corporations because crowdsourced models incentivized by tokens simply work better.
But when historians look back in a few decades, will they see this period as a turning point in the transition from an economy dominated by corporations to a new crowdsourced model where participants are incentivized with tokens to grow a project and share in the profits?It may sound far-fetched given that mega-corporations dominate the present reality, but imagine a world in which Uber drivers and their passengers own and operate a decentralized rideshare network.
Or one where Airbnb property owners, guests and even the cleaning staff share in the success of the cooperative business. “What has happened over the last 10 to 12 months would have probably taken 10 to 12 years had it not been for the pandemic,” explains Michael Anderson, co-founder of Framework Ventures.
Anderson says the concept of a decentralized collective effort has become normalized by working from home. “That kind of concept of working for a company where you show up every day, and there’s an office […] that’s kind of been broken down,” he says.
Anderson uses the example of a clothing production line in which the sourcing of materials, the creation of clothing, distribution and sales could all be incentivized and organized through this new model. “I think what we’ve seen over the last few years is a peak of corporations.
And while our mental models for this sort of ownership currently look a lot like handing out equity, Anderson expects that to change as the use of tokens grows and evolves. According to Andersen, having a clear vision of the future — or a strong thesis about how things may evolve in the future — is one of the things that separates Framework Ventures from many other investors in the space.
They are popular guests on DeFi-themed podcasts as a result of their inspiring and well-reasoned thoughts about the future. Framework’s first big success came before they’d even formalized the fund, with Anderson and Spencer developing a thesis around the need for smart contracts to access secure, reliable real-world information, which informed their investment in decentralized oracle network Chainlink:“Mass adoption of interesting smart contracts will require data feeds that are secure, external to the blockchain (i. e. , interest rate data from a bank), and maintain privacy when incorporated into a smart contract.
This is the secret to successful VC investing, Anderson says. “Finding the pieces that fit into that vision and into that new world, I think, is actually the easy part,” he says.
We started to have an informal investment partnership together, where we were looking at different angel opportunities, and it just kind of grew from there. ”Top Shot in all but nameIt’s one thing to develop a clear vision of the future, and it’s another to profit from it.
Anderson and Spencer sold the business to a sports holding group in New York. “It’s definitely hard to push something, especially when you know that this idea should be working but the infrastructure, the technology just isn’t there,” he says.
“It just means that we’re rolling up our sleeves being one of the larger users, one of the largest suppliers for most of the investments that we make; it’s kind of how we define our edge. ”Anderson and Spencer see this as a perfect alignment of interests, and it’s why this new decentralized organization model can take some of the power back from the tech monopolies and corporations that dominate everyday lives.
He says, “Google had this famous line of: ‘Don’t be evil. ’ Well, blockchains enable something even better, which is: ‘Can’t be evil. ’” “When you build cryptographic guarantees around transparency and decentralization, you know, there isn’t the ability for a corporation to extract value in the same way. ”Radical transparency means the best projects with the most well-thought-out incentives will attract the sharpest minds, and those that hold 50% of the tokens back to dump on retail in the future will get shunned. “I think you don’t really get that far with those types of models because everything is transparent and the incentives are aligned with the users of the product, the users with the networks, more so than anything I’ve seen in the previous tech generations. ”