What Co-Ops and DAOs can learn from each other

What Co-Ops and DAOs Can Learn from Each Other

This resource discusses the intersections and potential learnings between cooperatives (co-ops) and decentralized autonomous organizations (DAOs). The content highlights the importance of blending these two organizational models to enhance collective ownership and governance. It is published on a website focused on collaborative community building, founded by contributors involved in both the platform cooperativism movement and the DAO space.

Platform cooperativism emerged as a response to the exploitative nature of the Web 2.0 sharing economy. The concept, introduced by Trebor Scholz, emphasizes the formation of platforms owned and controlled by workers and users. This model aims to ensure that platforms like ride-sharing apps and grocery delivery services are owned by the people who contribute to them. Over the years, this movement has gained traction globally, fostering community organizers and social entrepreneurs who share experiences and challenges, particularly in securing funding.

Co-ops and DAOs both promote collective ownership but differ significantly in governance structures. Co-ops operate on a one-member, one-vote basis, ensuring equal voting rights among members. In contrast, DAOs typically use a one-token, one-vote system, which can lead to disparities in power based on financial stakes. Despite these differences, both models aim to expand collective ownership and governance, prioritizing shared control and the creation of communal goods.

The historical practices of cooperatives provide valuable insights for DAOs. Co-ops have long been utilized as means of mutual aid and democratic ownership, with examples from marginalized groups in America creating solidarity networks for survival. These historical frameworks illustrate the significance of community-led economic coordination, highlighting how past initiatives can inform contemporary practices in the DAO space.

Co-ops often emerge in response to systemic inequities, focusing on providing benefits like good jobs and collective agency. Their motivations are typically aligned with social justice goals. In contrast, many DAOs have formed around profit-driven or speculative ventures. However, there are discussions around Decentralized Impact Organizations, which aim to direct resources towards social impact, demonstrating the potential for DAOs to also engage in economic and racial justice initiatives.

The concept of the "ownership economy" in the crypto space risks diluting the essence of true ownership, which includes transparency and accountability. Co-ops have established frameworks for shared ownership, which can serve as a guide for DAOs looking to create robust governance structures. This is essential for ensuring that all members have a voice in decision-making processes.

Cooperatives often unite around shared principles, such as democratic control and community concern. The Rochdale Principles serve as a foundation for many co-ops, emphasizing open membership and cooperation among cooperatives. As DAOs evolve, establishing common principles could help guide their development and collaboration, ensuring they avoid replicating the pitfalls of previous organizational models.

DAOs have the advantage of rapid experimentation and innovation, allowing them to quickly implement ideas and scale impact. This flexibility contrasts with the often lengthy processes required to establish traditional co-ops. Examining successful DAOs can provide insights for co-ops aiming to innovate and adapt in a rapidly changing landscape.

DAOs utilize tokens to facilitate coordination and funding, presenting a potential solution for co-ops facing capital challenges. These tokens can incentivize member contributions, allowing cooperatives to bootstrap their operations without traditional equity investments. This model could empower co-ops to better engage their communities and enhance collective ownership.

The future may lie in hybrid models that combine the strengths of co-ops and DAOs. Organizations like DisCo explore how DAOs can operate with cooperative principles, while others experiment with community ownership in a decentralized manner. By integrating these models, it is possible to create effective, principled organizations focused on building a more equitable future.