Introducing DAC Technology

How Decentralized Autonomous Communities may help Puerto Rico thrive

Luke Stokes

• Majored in computer science engineering at UPENN, built my first websites in 1996
• Co-Founded and built FoxyCart.com, a successful ecommerce solution with thousands of stores for over 10 years
• Been involved in blockchain technology since January 2013, sold my business in 2018 to focus on it full time
• Moved to Caguas, PR on December 4th, 2018 with my wife and three kids
• I want to see blockchain technology used to bring about more economic freedom and global, non-violent consensus

How we got here...

• CoinAgenda
• Pedro Piquer Henn, Esq.
• “Hello… Maybe I can help?”
• A newbie invited to speak to government...

Time is money.

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I don’t want to waste yours.

What is a “DAC”?

• Decentralized
• No single point of failure
• Autonomous
• Smart contract-driven consistency
• Community
• Members are owners/operators

Are DACs the Future?

• Traditional Economics
• Conflicts between customers, employees, and owners
• Tokenomics
• Shared goals where customers are also employees and token-holders

What is eosDAC?

• Respected community-owned block producer on the EOS blockchain
• Builder of open-source, DAC-enabling technologies

What did eosDAC build?

• DAC Smart Contracts
• Built on EOS
• Member Client
• Material Design, Quasar, Bootstrap
• API integrations to the blockchain
• Node.js, mongoDB, etc

How might it help Puerto Rico?

• Open Source
• Customizable
• Transparent solution for tracking proposals, voting on custodians, approving payments, and more

Step 1

New resident registers, identification validated, and smart contract stores on the blockchain

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Step 1 - Challenges

• Identity validation - third party service?
• Identity privacy (everything on a blockchain is public) - hashes only?

Step 2

Not-for-profit registers, validated by Dept of Treasury, and smart contract stores on the blockchain

Step 3

Resident spends $5,000, throughout the year, on registered non-profit organizations in dollars or crypto. Smart contract stores/executes transactions on blockchain and directs to appropriate non-profits

Step 4

Non-profit receives funds (converted to dollars) and stores receipt on blockchain

Step 4 - Challenges

• Conversion from dollars to cryptocurrency - custodians validate dollar transfers?

Step 5

Smart contract sends notification of contribution and receipt of contribution and generates approval for token in Step 6 and stores information on the blockchain

Step 5 - Going Further...

What if each non-profit ran as a DAC with their own custodian board approving on-chain, documented proposals for how the donated funds are spent?

Step 6

Smart contract sends notification to individual - generates digital token that can be used for tax purposes

Imagine DACs running...

• Non-Profits
• Businesses
• Associations / HOAs / Clubs
• Government Programs

Benefits Include:

• Security
• Transparency
• Accountability
• Fraud Prevention
• Programmable Money

Non-Profit Transparency and Accountability

• Show how donations are improving Puerto Rico down to individual project expenditures of each non-profit
• Roll up the aggregate blockchain data into overall benefit reports

members.eosdac.io

So What Now?

• How do we prevent analysis paralysis and get sh*t done?
• Who will take responsibility for customizing open source code and managing maintenance like a business?

Full Disclosure: Some call me a voluntaryist

• I believe humans don’t need rulers and technology can help create voluntary interactions and systems to govern ourselves.
• DACs and economic freedom are the future. I hope you are also.

CoinAgenda Presentation Notes

UNCERTAINTY DUE TO LACK OF FEDERAL REGULATION

--> Innovate. Ask for forgiveness later. The greatest defense is wildly popular success.

EACH STATE/COUNTRY CREATING THEIR OWN LOCAL LAWS/REGULATIONS

--> All the more reason to get in front quickly and set the standard for the world.

LACK OF UNDERSTANDING OF SUBJECT AMONG LOCAL PUBLIC & PRIVATE SECTOR.

--> Huge problem we all have to work at fixing. I've worked on projects like http://understandingblockchainfreedom.com and continue to post on social media regularly with free educational content.

CoinAgenda Presentation Notes

LACK OF MONETARY RESOURCES

--> What if community was engaged and encouraged to participate without money (similar to open source projects) just using digital tokens? In the future, the tokens may have value or allow for governance involvement through voting, but in the beginning they can simply exist with no promise of future value.

INTERGOVERNMENTAL INFORMATION TRANSFER

--> Blockchains make everything transparent. The real problem is disrupting the status quo and putting some government organisms out of business.

CoinAgenda Presentation Notes

Open and equal access to all stakeholders:

-> DAC model ensures everyone with a token can participate in governance or submitting a worker proposal

Payment rail providers (including digital assets)

-> Getting from cryptocurrency to fiat can be tricky

Blockchain service businesses

-> Clarity on what this means?

CoinAgenda Presentation Notes

Non-Profit Donation Platform

eosDAC technology is a great start for this. Areas to expand:

-> Creating a "token" used for tax purposes. Might be easier just to reference a transaction on the blockchain as everything done will already be in the blocklog.

-> non-profits would register just like users. They would be the ones to fill out worker proposals.

-> The government would be the initial custodians?

-> Validation step required for members and charities to join (managed by the custodians?)

CoinAgenda Presentation Notes

Government entities

-> Their engagement?

Residents of Puerto Rico (the public)

-> For sure!

Media

-> Use blockchain media outlets like Steem

Sustainable revenue models for continued operation

CoinAgenda Presentation Notes

Usage Fee

-> What about voluntary inflation?

Transparency of operations

Fees

Participants

Contract terms with commercial providers

-> Yes, everything on-chain.

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