Week 11
Communities And Institutions
- Decentralized systems from zero, week 11
- Technology works when people can govern it together.
Outcomes
What You Will Be Able To Do
- Describe network states and pop-up cities.
- Explain how cooperatives are governed.
- List Ostrom's design principles.
- Apply them to a community.
- Write a charter with exit rights.
Motivation
Protocols Need People
- Tools help only when groups use them.
- DAO failures are often social.
- Informal power appears when rules are missing.
- Written rules make power visible.
Experiment
Network States
- Idea from Balaji Srinivasan, 2022.
- Start with an online community and shared purpose.
- Build collective action, then gain territory.
- Treat it as an idea under test.
Experiment
Pop-Up Cities
- Temporary community living for a few weeks.
- Shared housing, meals, talks, and projects.
- Zuzalu in Montenegro, 2023, was an early example.
- Later events tried new formats.
Experiment
Pop-Up Lessons
- Short events allow fast, low risk learning.
- Real relationships strengthen online groups.
- Visas, venues, safety, and cost need planning.
- Continuity is the hard part.
Ownership
Cooperatives
- Owned and governed by members.
- One member, one vote.
- Surplus follows use or work.
- Credit unions and worker shops are examples.
Ownership
Cooperatives And DAOs
- Cooperatives align ownership with participation.
- DAOs offer transparent ledgers and programmable payments.
- Platform cooperatives are owned by their users.
- Legal form depends on the country.
| Cooperative | DAO |
|---|
| Vote | One member, one vote | Often by token |
| Records | Annual accounts | Public ledger |
| Payments | Bank | Programmable |
Ostrom
The Commons
- A resource shared by a group.
- Examples: fisheries, forests, codebases.
- Hardin said users ruin shared resources.
- Ostrom studied real cases that lasted.
Ostrom
Ostrom'S Principles, Part One
- Clear boundaries for users and resource.
- Rules fit local conditions.
- Affected people help change the rules.
- Users or their agents monitor.
| Principle | Example in code projects |
|---|
| Clear boundaries | Maintainer list |
| Local rules | Project guide |
| Collective choice | Open proposals |
| Monitoring | Public reviews |
Ostrom
Ostrom'S Principles, Part Two
- Graduated sanctions for rule breaks.
- Cheap, quick conflict resolution.
- Outside authorities respect self-organization.
- Larger systems nest smaller groups.
Application
Ostrom For An Open-Source Project
- Boundaries: contributor and maintainer roles.
- Rules: contribution guide, code of conduct.
- Monitoring: code review.
- Sanctions: reminder, then temporary ban.
boundary -> roles
rules -> contributing.md
monitoring -> code review
sanction -> warn, then ban
Practice
Charter Basics
- Purpose and membership.
- Roles and decision rules.
- Admin powers and who holds keys.
- How the charter itself can change.
Practice
Conflict, Exit, And Safety
- Dispute steps: talk, mediate, decide, appeal.
- A safety contact members can reach privately.
- Easy exit with data export.
- Collect only the data you need.
Practice
Money, Law, And Handover
- Pick a legal wrapper with advice.
- Keep accounts open where the law allows.
- Share authority with newcomers gradually.
- Review the charter on a schedule.
Summary
Recap
- Network states and pop-ups are experiments to test.
- Cooperatives tie ownership to participation.
- Ostrom's principles describe lasting commons.
- A charter makes power visible.
Coming up
Next Week: Capstone
- Design a decentralized application or protocol.
- Use the brief, rubric, and demo script.
- Present and review each other's work.
Wrap up
Questions And Exercise
- Exercise: write a charter and test it against Ostrom.
- Swap with a partner for written feedback.
- Read chapter 3 of Governing the Commons.