Hey all!
We just finished the first call that lasted for a surprising 1 hour and 40 minutes.
We went through these questions by @coffee-crusher above and some other questions by @fiatisabubble as well. It was just a chilled free flowing conversation where I talked a little bit about my background and experience and my vision for House of Stake and NEAR.
As promised, here is the summary of the transcript of the call summarized by Grok 3 (which is open-source) and by using this amazing open-source prompt that classifies the call’s transcripts into you favorite way of consuming information.
So whether you like IDEAS, INSIGHTS, QUOTES, HABITS, FACTS, REFERENCES, or RECOMMENDATIONS, just pick your flavour to get a gist of what we talked about in the call where I discussed my DAO governance expertise, motivations, and vision for NEAR’s decentralized future.
ONE-SENTENCE TAKEAWAY
Paulo Fonseca advocates for community-driven DAO governance to ensure decentralization and transparency.
IDEAS
- Paulo Fonseca has 15 years of UX design and user research experience.
- He transitioned to full-time crypto and DAO work in 2021, co-founding RnDAO.
- RnDAO focused on researching DAOs while operating as one, starting in 2021.
- Paulo left RnDAO due to differing visions, which shifted to investment-focused ventures.
- He co-founded Senate, a governance tooling app, but later pivoted to open-source.
- Proposals.app aggregates Arbitrum governance data, funded by an Arbitrum grant.
- Paulo is a vocal Arbitrum delegate, pushing for transparency and accountability.
- He believes DAOs need delegate incentive programs to encourage active governance.
- Governance tools should be open-source to avoid misaligned incentives, he argues.
- Paulo sees blockchain’s primary use case as securing immutable data, not finance.
- AI models and data should be decentralized on blockchains, he suggests.
- NEAR’s vision for AI requires robust, decentralized governance to succeed.
- Foundations in DAOs are becoming obsolete due to increasing regulatory clarity.
- Paulo criticizes foundations for centralizing power, undermining true DAO decentralization.
- He advocates for community-elected governance roles, not foundation-appointed ones.
- Delegate exclusivity in DAOs prevents conflicts of interest across ecosystems.
- Whistleblowing programs deter scams and ensure accountability in DAOs.
- Arbitrum’s DAO can replace foundation directors, a unique governance feature.
- Paulo views governance as critical to humanity’s survival and flourishing.
- NEAR’s community is lively, reflecting strong engagement and decentralization potential.
- He believes DAOs can experiment with governance models for real-world application.
- Transparency reports from foundations often lack community engagement or clarity.
- Paulo’s application for NEAR’s governance role was made public intentionally.
- He contrasts his governance approach with another anonymous candidate’s perspective.
- Paulo sees NEAR’s House of Stake as a chance to redefine decentralized governance.
INSIGHTS
- Decentralized governance is essential for blockchain’s role in securing AI data.
- Open-source governance tools ensure neutrality and prevent misaligned incentives in DAOs.
- Community-elected roles enhance DAO legitimacy, reducing foundation-driven centralization risks.
- Delegate exclusivity mitigates conflicts, fostering trust in decentralized ecosystems.
- Whistleblowing programs are effective for maintaining integrity in DAO governance.
- Robust DAO governance can model solutions for real-world organizational challenges.
- Transparency in foundations is critical to align with community-driven DAO goals.
- Blockchain’s future lies in immutable data security, beyond financial applications.
- NEAR’s AI vision demands a truly decentralized governance structure to succeed.
- Active community engagement is a hallmark of effective DAO ecosystems.
QUOTES
- “I’ve been working as UX designer, user researcher for like 15 years now.” - Paulo Fonseca
- “I decided to go full time crypto and join DAOs in 2021.” - Paulo Fonseca
- “Governance tooling should be open source and neutral.” - Paulo Fonseca
- “I’m not very interested in the financial speculation aspect of crypto.” - Paulo Fonseca
- “We should figure out better ways to govern ourselves.” - Paulo Fonseca
- “Blockchain for AI needs to be very properly governed.” - Paulo Fonseca
- “Foundations are a centralization point that doesn’t make sense.” - Paulo Fonseca
- “I think it’s time to put my money where my mouth is.” - Paulo Fonseca
- “The main use case for blockchain technology is not finance.” - Paulo Fonseca
- “AI models should run in a decentralized fashion.” - Paulo Fonseca
- “Delegate incentive program compensates delegates for governance work.” - Paulo Fonseca
- “Whistleblowing program dissuades scams by announcing a bounty.” - Paulo Fonseca
- “Arbitrum DAO can replace foundation directors, a specific power dynamic.” - Paulo Fonseca
- “NEAR needs a DAO to fulfill its vision.” - Paulo Fonseca
- “Community is wild, they don’t hold back, they say whatever they want.” - Paulo Fonseca
- “Governance roles should be chosen by the community, not Foundation.” - Paulo Fonseca
- “I’m a very different candidate from the other anon candidate.” - Paulo Fonseca
- “We need to design governance where the DAO has the power.” - Paulo Fonseca
- “Humanity might end up extinct without better governance.” - Paulo Fonseca
- “NEAR has lived a few different lives with different strategies.” - Paulo Fonseca
HABITS
- Paulo actively participates in DAO governance discussions and forums daily.
- He engages in public transparency by posting applications openly online.
- Regularly critiques foundation actions to push for accountability and clarity.
- Maintains a habit of researching DAO structures and governance models.
- Frequently joins community chats to stay connected with stakeholders.
- Takes notes during discussions to address questions thoroughly later.
- Consistently advocates for open-source principles in governance tool development.
- Monitors and responds to community feedback on governance proposals.
- Participates in hackathons to innovate governance solutions, like proposals.app.
- Shares governance insights publicly via Twitter and forum posts.
- Collaborates with peers to refine ideas on decentralized governance systems.
- Reviews governance proposals with attention to detail before discussions.
- Engages in debates to refine governance ideas and challenge norms.
- Maintains a critical stance on centralized foundation practices in DAOs.
- Plans to summarize and share call transcripts for community benefit.
- Schedules regular community calls to discuss governance and progress.
- Tracks regulatory changes to inform DAO governance strategies effectively.
- Builds reputation as a delegate through consistent governance contributions.
- Seeks feedback from peers to improve governance tool designs.
- Balances multiple governance roles while avoiding conflicts of interest.
FACTS
- Paulo co-founded RnDAO to research DAOs while operating as one.
- RnDAO shifted to an investment-focused venture after Paulo’s departure.
- Senate, a governance tooling app, raised funds but was scrapped.
- Proposals.app aggregates Arbitrum’s offchain and onchain governance data.
- Arbitrum DAO can replace foundation directors per its bylaws.
- NEAR has undergone multiple strategic shifts in its history.
- Foundations were created to navigate unclear crypto regulations initially.
- Uniswap’s DUNA initiative addresses regulatory concerns for fee distribution.
- Arbitrum’s Foundation spent $117 million in 2024, per report.
- Transparency reports from foundations often lack community engagement.
- Delegate incentive programs exist to compensate DAO governance work.
- Whistleblowing programs in DAOs deter scams and promote accountability.
- NEAR’s community is highly engaged, reflecting decentralization potential.
- Governance tools with business models risk misaligned incentives.
- Blockchain’s primary use case is securing immutable data, not finance.
- AI data and models benefit from decentralized blockchain governance.
- Paulo has been a vocal Arbitrum delegate for a year.
- NEAR’s DAO efforts involve significant financial investment currently.
- Governance roles in DAOs are often foundation-appointed, not community-elected.
- Conflicts of interest arise from delegates serving competing ecosystems.
REFERENCES
- RnDAO: A DAO Paulo co-founded focused on DAO research.
- Senate: A governance tooling app for DAO delegates, later scrapped.
- Proposals.app: An open-source governance aggregator for Arbitrum ecosystem.
- Arbitrum: A blockchain ecosystem where Paulo is an active delegate.
- NEAR: A blockchain protocol Paulo is applying to govern.
- Uniswap: Referenced for its DUNA initiative and fee switch debate.
- A16Z: Mentioned for their voting power in Uniswap governance.
- SingularityNET: Early influence on Paulo’s decentralized AI interests.
- The DAO: A DAO Paulo joined in 2016, sparking his interest.
- House of Stake: NEAR’s community chat Paulo finds lively.
- Arbitrum Delegates Telegram: A chat Paulo manages for discussions.
- Fireflies: A note-taking tool used for call summaries.
- IPFS: Used by Paulo to preserve transparency report versions.
- Winamp skins: Early UI design work by Paulo as a kid.
- Sociocracy and Holocracy: Governance models discussed in RnDAO talks.
RECOMMENDATIONS
- Implement delegate incentive programs to boost DAO governance participation.
- Ensure governance tools remain open-source to maintain neutrality, fairness.
- Elect DAO governance roles through community voting, not Foundations.
- Establish whistleblowing programs to deter scams in DAO ecosystems.
- Design governance with clear checks and balances for decentralization.
- Prioritize transparency in Foundation reports to align with community.
- Avoid delegate conflicts by enforcing exclusivity in competing ecosystems.
- Experiment with DAO governance to find real-world applicable models.
- Secure AI data on blockchains for immutable, decentralized governance.
- Foster lively community chats to enhance DAO engagement, collaboration.
- Regularly update governance processes to reflect regulatory clarity changes.
- Create mechanisms for DAOs to replace Foundation directors effectively.
- Encourage public applications for governance roles to ensure transparency.
- Use decentralized platforms like IPFS for immutable transparency records.
- Continuously engage with community feedback to refine governance strategies.
- Develop governance aggregators like proposals.app for better transparency.
- Promote discussions on sociocracy, holocracy for innovative governance models.
- Invest in decentralized governance to support blockchain’s AI applications.
- Regularly summarize and share governance call outcomes with community.
- Challenge centralized foundation actions to ensure true DAO decentralization.