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Valocracy: A Web3 Solution for Next-Gen DAOs

Version: 0.1 (oct-23)

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The shift from “Web2 Era” to “Web3 Era” is upon us, even though we cannot agree on what Web3 actually means.

Some will say that it is about data and money ownership, others will say that it is about the metaverse, and some will even argue that it is about privacy and the decentralized foundations for a crypto-anarchist future.

All in all, it seems that what Web3 is really trying to encompass is an amalgam of social, economic, and political shifts in how we perceive and engage ourselves as individuals within collectives.

Not to be surprised, the creation of digital communities in Web3 is prevalent, and it seems to be at the heart of what we can observe as the “Web3 phenomenon”, in which lots of communities are attempting to thrive through the experimentation of different and recent technological building blocks, such as social media and blockchain.

Nonetheless, some of these communities, in particular the ones that attempt to be more inclusive and democratic in the form of DAOs, are failing to escalate and to create proper incentives that actually promote true social, economic, and political shifts in human relations.

Hence, “Valocracy”: A novel and structured social, economic, and political framework that attempts to leverage blockchain technology in order to create new forms of organizations with the goal of empowering communities along with their individuals and their combined efforts.

Why do we need new social, economic, and political models?

The answer is both simple and complex.

First and foremost, because our current models are unsustainable and are evolving towards an inevitable dystopic endgame, be it from social, economic, or environmental collapse.

But secondly, and most significantly, because we can actually do much better than we do right now, as we have new technologies and experience at our disposal that enable us to do so.

That is the simple part…

The complex part is that whatever models exist that can surpass our current models are yet to be known and will have to be discovered through the old and good “trial and error”.

And what does that have to do with Crypto and Web 3?

If we go back to the middle ages, we would have the established power as the “Church-State” arrangement, where the Church legitimizes state power, and the State then exhorts power and finances the Church.

That, of course, until the invention of new technologies, such as the printing press and banking, which not only subtracted power from the previously established elites but also bred the emergence of a new one: the “Banks”.

Eventually, the Church ended up (mostly) separated from the State, and we saw the rise of the “Secular State” that configured a new kind of dominant establishment: the "Government/Central Bank” establishment, where governments legitimize banking with the rule of law, and in return, banks finance the government's operations.