Building the TE Commons

Griff Green

@thegrifft

TE COMMONS - EXPECTATIONS

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What it is...

• An economy that prioritizes funded TE work (exact focus TBD by you)
• A fun DAO-club coordinating funded TE value production
• A path to make financially supporting the TE field fun & a win-win!

� What it is not...

• A transferable currency (probably)
• Free money for nothing
• A replacement for any other project
• Quick & easy

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We want to help you create a TE Commons!

TE

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COMMONS STACK EXPECTATIONS

What we hope to give:

• Lots of hours to organize and champion this effort
• Need to finish the Commons Simulator to clear out more time
• Efforts to raise funds to pay for a full time Champion & other costs
• Support in gathering the Hatchers to kickstart the TEC

�What we hope to get:

• CSTK Token Holder experience with Hatching Commons
• To document a Cultural Build (our focus in this effort)
• An ABC working in the wild (probably a slightly modified Gardens)
• Credibility by supporting an actual working Commons

STEP 1: COMMUNITY STEWARDS

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• We will want to gather a small crew
• Pass out Roles, Hats & Moustaches
• Make a Discord room
• Start the Cultural Build!

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STEP 2: CULTURAL BUILD

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The Vision & Identity Written Down

• Explicitly state the value to be created by the TE Commons
• Vision, Values, Mission/Goals (long/short term)
• Constitution, Process, Procedures, Roles/Expectations

� The Plan

• Align the Legal, Technical, Social & Financial Roadmaps
• Ensure Ostrom’s Principles are followed

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Advice Process - “Product Market Fit”

• Identify stakeholders, collect feedback & refine the plan

The longest part! Expect 6 months.

Vector created by macrovector - www.freepik.com

Hatchers will Govern the Commons: Community members that have a reputation of being altruistic & value aligned are the ideal candidates to become part of the Hatch.

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They will acquire & generously provide the seed capital to start the Commons, in return they get governance rights via locked tokens.

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STEP 3: RECRUIT HATCHERS

The Reserve backs the value of the TEC token

The Funding pool is used to fund TE Projects

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TEC Hatchers

Reserve

Funding Pool

500k

300k

200k

Step 4: HATCHING THE COMMONS

300k

HATCH INCENTIVES

Slippage & Vesting Encourage Hatchers to Develop the Commons

6¢ to �Reserve

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4¢ to �Funding Pool

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Token holders vote on which projects receive the funds in the funding pool using Conviction Voting. While denominated in DAI, the funds will be given in TEC.

Token Holders

Funding Pool

Open Source TE Projects

STEP 5: GOVERNING THE COMMONS

TEC Tokens are created on demand by the TEC’s Augmented Bonding Curve.

If a circular economy arises, the TEC can become an attractive Impact Investment.

If the TE Commons is managed well, it will attract more donations, which will grow the internal economy and raise the TEC Token price

TEC

Token Price

100

100 DAI

STEP 6: GROWING THE COMMONS

TEC Tokens are encouraged to be held & used to distribute the Commons’ Funding Pool.

Other funding streams can be added as well.

If a TEC token holder wants to convert their token to DAI, they pay an exit tribute to the TEC & the token price will fall.

Token Price

100 DAI

80

STEP 7: SUSTAINING THE COMMONS

TEC

THE KEY ADVANTAGE OF THE TE COMMONS

If it works, contributions to advancing the TE field can be rewarded & sustained by a regenerative Commons’ economy.

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If it fails, the Hatchers simply donated funds to advancing TE, while retaining active decision power over how their donations were spent.

WHAT HAPPENS NEXT?

TE Community

• Create & join a discord channel
• Actively engage in the channel

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Commons Stack

• Kick Start this effort
• Create a Roles Sheet and promote it
• Post relevant content & opportunities to help
• Draft a roadmap for the Cultural Build

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TE

TE

TE

AMA

Thank you for listening!

STEP 4: PUBLISH THE CULTURAL BUILD

Promote it to the world: This should be targeted at the people that benefit from the value your community intends to create, non-hatchers that may want to contribute funds Post-Hatch and the people that will want to propose work for the TE Commons to fund.

TRUSTED SEED

Successful decentralized networks grow out of a Trusted Seed, a core group of aligned individuals that are obsessed with the long term, qualitative value that can be provided by the network (not profit-driven)

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Bitcoin

• Satoshi, the benevolent trusted whale

Ethereum

• Ethereum Foundation

Countless failed sh!tcoins & DAOs

• ...Profit-seeking or otherwise misaligned founders

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The Key to a Successful DAO

THE COMMONS STACK MISSION

Create Sustainable Funding, Incentive Alignment & Novel Coordination Techniques for supporting Public Goods

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Build a foundation of Tooling & Documentation to enable innovative communities to design & launch successful DAOs around the value they create

�We call these DAOs “Commons”

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COMMONS

“A commons is neither the resource, the community that gathers around it, nor the protocols for its stewardship, but the dynamic interaction between all these elements.” - David Bollier

Our Commons are special ;-)

• Capital C
• Protocol is DAOified
• Contains a value aligned funding layer

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COMMONS ARE COMPLEX

ADAPTIVE & DYNAMIC SYSTEMS

They are very sensitive to initial conditions

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HATCHING A COMMONS

The early adopters set the vibe of the Commons, they will determine if it succeeds

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Choice early adopters will be:

• Value driven, not profit driven
• Know how to achieve the mission
• Collaborative and Competitive
• Experienced with the community
• Experienced with the tech
• Actively engaged

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BE SELECTIVE IN YOUR INITIALIZATION

START WITH SUPERSTARS & SET THEM UP FOR SUCCESS

Well designed initializations will:

• Account for “skin in the game”
• Have fair rules for everyone
• Penalize failure
• Reward success
• Lock in users
• Be exclusive

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The Reserve backs the value of the token

The Funding Pool is used to fund projects

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Hatchers

Reserve

Funding Pool

HATCHING A COMMONS

Token holders vote on which projects receive the funds in the funding pool using Conviction Voting. While denominated in DAI, the funds will be given in BCC.

Token Holders

Funding Pool

Public Goods

DEVELOPING THE COMMONS

BC

BCC Tokens are created on demand by the BCC’s Augmented Bonding Curve.

If a circular economy arises, the BCC can become an attractive Impact Investment.

If the BC Commons is managed well, it will attract more donations, which will grow the internal economy and raise the BCC Token price

BCC

Token Price

100

100 DAI

GROWING THE COMMONS

Exit Tribute: 20%, for Commons’ Funding Pool to support bonding curve research.

Acts as a disincentive to exiting so funds to pool in system

If a BCC token holder wants to convert their token to DAI, they pay an exit tribute to the BCC & the token price will fall.

Token Price

100 DAI

80

SUSTAINING THE COMMONS

BC

BCC

THE KEY ADVANTAGE OF A COMMONS

If it works, contributions to public goods can be rewarded and sustained by a regenerative Commons’ economy.

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If it fails, the Hatchers simply donated a lot of money to a cause they believe in, while retaining active decision power over how their donations were spent.

As early adopters they should be:

• Value driven, not profit driven
• Experienced with the community
• Experienced with the tech
• Know how to achieve the mission
• Collaborative and competitive
• Actively engaged

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GATHERING QUALIFIED HATCHERS

As early adopters they should be:

• Value driven, not profit driven
• Experienced with the community
• Experienced with the tech
• Know how to achieve the mission
• Collaborative and competitive
• Actively engaged

What is it?

• A collection of prosocial, blockchain-aware individuals that support the development sustainable funding for public goods
• A sort of DAO for good Commons Hatchers
• A venture studio, but for public goods
• The critical cultural component enabling non tech �communities to successfully make Commons!

�What is its mission?

• To support the creation of the Commons Stack
• To support early stage Commons

THE COMMONS STACK TRUSTED SEED

Benefits?

• Opportunity to be a founding member in many future Commons
• The ability to choose which Commons we support
• Access to the Core Team. We work for you!
• Commons Stack Association Legal Shield

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Requirements?

• Fill out our application: CommonsStack.org/apply
• Pass our “Trust Test”
• Put “skin in the game” by contributing
• Act right in the Commons you join

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THE COMMONS STACK TRUSTED SEED

HOW DO YOU JOIN?

CommonsStack.org/apply

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WHAT HAPPENS AFTER I APPLY?

Commons Stack Core

• Reviews your application to understand who you are
• Accepts or rejects your application
• Notifies you by email

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CSTK Tokens?

• Non-transferable, reputation token
• Measure your “Skin in the Game”
• Capped by the Trust we place in you
• The more CSTK you have, the more tokens you �can buy in Future Hatches

AMA

Thank you for listening!

STEP 3: PUBLISH THE CULTURAL BUILD

Promote the plan: This should be targeted to the potential Hatchers & the people that want to raise funds for Commons projects. Ideally there is a healthy overlap between these two groups.

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Hatchers will Govern the Commons: TE community members that have a reputation of being altruistic & value aligned are the ideal candidates to become part of the Hatch.

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They will generously provide the seed capital to start the Commons, in return they get governance rights via locked TEC tokens.

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STEP 4: RECRUIT HATCHERS

300k

STEP 5: HATCH CONTINUED

Slippage & Vesting Encourage Hatchers to Develop the Commons

LEARN MORE

Community

• Telegram: t.me/CommonsStack
• Twitter: @CommonsStack
• GitHub: Commons-Stack
• Medium: CommonsStack��

Academic Papers

• From Curved Bonding to Configuration Spaces
• Economic Games as Estimators
• Sensor Networks and Social Choice

Blog Posts

• Augmented Bonding Curve Deep Dive
• Conviction Voting
• Automating Ostrom
• Computer-Aided Governance

cadCAD Models

• Hatch Simulation
• Augmented Bonding Curve Simulation
• Conviction Voting Simulation

T RUSTED SEED

Successful decentralized networks grow out of a Trusted Seed, a core group of aligned individuals that care more about the long term value

provided by the network than short term profits

​

Bitcoin

• Satoshi, the benevolent trusted whale

Ethereum

• Ethereum Foundation

Countless failed sh!tcoin

• ...Profit-seeking founders

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The Key to a Successful Commons

COVID-19 Open Research Commons

• Expert researchers that are internationally respected and have a reputation of being politically neutral & Altruistic

OUR TRUSTED SEED

CSTK Token Holders Can Help Start Commons SLIPPAGE & MARKET CAP ILLUSION

USED TO REWARD ECONOMIC GROWTH

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The Commons Stack needs them to:

• Be trusted to be value-driven (not profit driven)
• Support early stage Commons development
• Learn how to successfully manage a Commons

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The Trusted Seed in return receives:

• Governance rights in the Commons Stack
• The option to Hatch any Commons that the

Commons Stack supports including our five

Field Test Commons

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Support our Gitcoin Grants

TECH:

• Commons Stack: Iteration 0
• Commons Simulator
• cadCAD Bounties
• Commons Dashboard Prototype

HEALTH:

• Giveth 2.0: Fight COVID-19
• COVID-19 Aid for Kenya w/ CIC’s

MEDIA:

• Token Engineering Community

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WHAT ARE THE BEST PRACTICES?

Apply lessons from outside the blockchain space!

• Elinor Ostrom
• Michel Bauwens
• Flat Organizational structures, e.g.
• Holacracy
• Sociocracy

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Apply lessons from inside the blockchain space!

• Blockchain DAOs: DASH, Decred, Pivx, Horizen, etc
• DAO Failures: TheDAO, Aragon Coop, etc
• DAO Successes: Moloch, Metacartel, dOrg, etc
• Previous Commons!!

INITIATING THE COVID-19 OPEN RESEARCH COMMONS

1. Recruit Trusted Seed: Expert researchers that are internationally respected and have a reputation of being altruistic & politically neutral are the ideal candidates to become part of the Hatch.�
2. Build the CORC Playbook: This includes the mission, values, legal strategy, policies, procedures, etc. Everything needed to ensure Ostrom’s 8 principles for managing a commons will be satisfied.

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• Trusted Seed Contribute Funds: These funds bootstrap the Commons & in return Tokens that are subject to Vesting are returned.

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COOL STORY, BRO… BUT CRYPTO UX?

THE SHORT GAME: AN ITERATIVE APPROACH

• Support the creation of the Token Engineering Commons
• Iteratively develop 4 more Field Test Commons
• Each one with a new core piece added
• Improve the models, UX, cultural & technical playbooks, etc

THE NOW: BUILD OUR TRUSTED SEED

• Seeding these communities with experts in:
• Decentralized Governance
• Token Engineering
• Commons Management

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IS OUR ECONOMY DOING ITS JOB?

THE MARKET ECONOMY HAS A HOLE

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NONPROFITS

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• Create non-excludable value
• COMMUNITIES WIN
• Tragedy of the Commons

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FOR-PROFITS

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• Create excludable value
• CUSTOMERS WIN
• Business models

INITIATING THE COVID-19 OPEN RESEARCH COMMONS

• Recruit Trusted Seed: Expert researchers that are internationally respected and have a reputation of being altruistic & politically neutral are the ideal candidates to become part of the Hatch.�
• Build the CORC Playbook: This includes the mission, values, legal strategy, policies, procedures, etc. Everything needed to ensure Ostrom’s 8 principles for managing a commons will be satisfied.

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LET’S BUILD

THE TE

COMMONS

THE COMMONS STACK MISSION

Create Sustainable Funding, Incentive Alignment & Novel Coordination Techniques for supporting Public Goods

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Build a foundation of Tooling & Documentation to enable innovative communities to design their own economy around the value they create

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WE FILL THAT HOLE USING PROGRAMMABLE ECONOMIES

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New funding approach for cause-focused communities

Instead of a business model, we can create economic models to incentivize the production

of value the community wants

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MAKE IT WORK FOR ANY CAUSE

Blockchain Incentive Alignment

Real World Applications: Public Health

COMMONS STACK

HOW TO CREATE A PARALLEL

PUBLIC HEALTH CRYPTOECONOMY

Donors & Tax Payers

Decision Makers

€

Public

Heath

Token

Holders

In the Public Health “economy” today, decision makers choose to fund what they think will both be liked & effective, but there are few feedback mechanisms to incentivize good decisions, and money simply flows in and out of the economy.

We create a parallel Public Health focused circular economy where money can pool and we can measure & manage the inputs & outputs.

The contributors to this crypto economy become stakeholders with aligned incentives for creating value within the system

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Decision making power is held by contributors with “skin in the game”

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WHAT THE HELL IS A BONDING CURVE?

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LEGACY 2-SIDED MARKETS

• Price is free floating, dependant on liquidity at that moment
• To buy or sell you need to find & interact with a trading partner
• A set number of assets exist
• Only work well for large regulated liquid markets
• Simple and well understood

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BONDING CURVE MARKETS

• Price is algorithmic, every token has a price in advance
• You can buy or sell any time by interacting with a smart contract
• Tokens supply matches demand
• In theory, should perform well for small and large market markets
• Novel & complex to design

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LET’S MAKE ONE!

SALUD COMMONS

The Commons holds its funds in the Funding Pool and Reserve. The exact dynamics between these two pools will be optimized using cadCAD simulations.

Funding

Pool

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The Reserve holds the collateral that the bonding curve collects when Salud Tokens are created

The Funding Pool holds the funds that are used to support Public Health projects

Reserve

INTERESTED IN SUPPORTING US?

To contribute to the Commons Stack, apply to join our

Trusted Seed

CommonsStack.org/apply

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Support our Gitcoin Grants

TECH:

• Commons Stack: Iteration 0
• Commons Simulator
• cadCAD Bounties
• Commons Dashboard Prototype

HEALTH:

• Giveth 2.0: Fight COVID-19
• COVID-19 Aid for Kenya w/ CIC’s

MEDIA:

• Token Engineering Community

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THE MARKET ECONOMY MISSES COMMUNITIES

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NONPROFITS

• Rely on self-sacrifice
• Donors
• Volunteers
• Common Good
• Produce value for a community
• Decision makers have few feedback mechanisms
• Fall prey to free-rider problem & tragedy of the commons

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FOR-PROFITS

• Rely on self-interest
• Investors
• Fair market wages
• Customers
• Produce value for individuals
• Decisions makers have aligned incentives with profit sharing
• Incentivized to evade taxes & exploit externalities

APPLY CULTURAL BEST PRACTICES

“A couple of months in the laboratory can frequently save a couple of hours in the library” ~ Frank Westheimer

Let’s innovate, yes, but we need to do our homework first & make a plan

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ABC HATCH SIMULATION

commonsstack.org/abc

SIMULATION BECOMES EFFECTIVE

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LEGACY ECONOMIES

• Rely on regulatory enforcement
• A wide variety of actions creates unpredictable emergence
• Liquidity is inconsistent & slippage is unknown
• Price is free floating, actions affect on the price is uncertain
• Simulations are ineffective at predicting dynamic behavior

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COMMONS ECONOMIES

• Rely on immutable code
• All actions allowed can be described mathematically
• Liquidity is infinite & slippage is predictable
• Price is algorithmic, actions affect the price deterministically
• Simulations can map actions to price to future behaviors

TOKEN BONDING CURVES

https://github.com/BenSchZA/awesome-bonding

FIELD TEST COMMONS

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Hatch Specifications

COMPLEX SYSTEM DESIGN CAN BE...

WELL, COMPLEX!

We want to make this the easy part!

OUTLINE OF MY TALK

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1. The gaping hole in our market economy
2. How Crypto addressed it
3. How the Commons Stack brings it to the physical world
4. Why we need a Trusted Seed
5. Q&A with your Neighbor
6. Q&A with me

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YOUR SHOW THIS MORNING

A TOKEN ENGINEERING FOUNDATION

KEEPING IT SIMPLE

The cadCAD foundation is built by:

1. Removing complexity from the initial designs.
2. Launching this basic system
3. Gathering data & Improving the models
4. Encourage others to add improvements & iterate

HATCHING THE SCOLARITÉ PARIS COMMONS

The Reserve backs the value of the SPC token

The Funding pool is used to fund Scolarité Paris Projects

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SPC Hatchers

KEEPING IT SIMPLE

Hatch

Tribute

MATH

WHITEBOARD

BUILDING A MAP FOR cadCAD

HATCH cadCAD Model

https://colab.research.google.com/github/commons-stack/conviction/blob/master/hatch_sim.ipynb

COMPUTER-AIDED GOVERNANCE

cadCAD models are not just artifacts of the design process!

It can be used to do predictive modeling on governance decisions and feature upgrades.

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LEARN MORE

cadCAD Workshops

• Tomorrow
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• DAOFest cadCAD workshop 2030 on Thursday the 5th

LET’S GET OUR HANDS DIRTY

cadCAD Tutorial!

• Robots & Marbles Tutorial - What we are working on Today!
• Google Colab makes everything easy
• Just add `!pip install cadCAD` as your first line
• We will walk you through part 1, the rest you can do at your own pace
• Have fun! PLAY with the model!
• If you run into any issues, ask us!
• Last 15 minutes is saved to share any cool deviations that you made from the tutorial!
• https://meet.jit.si/cadcad-commons - Danilo is helping us here live! PRAISE!
• Robots & Marbles Videos - Extra Background

VISUAL OF cadCAD IN ACTION

SUPPORT THE ADVANCEMENT OF

cadCAD & THE COMMONS STACK

To contribute to the Commons Stack, apply to join our

Trusted Seed CommonsStack.org/apply

AND JOIN

• Our dDev channel: t.me/CSdDev
• The cadCAD Channel: t.me/cadCAD_org
• The cadCAD Forum: community.cadcad.org

OUR TEAM

OUR ADVISORS

I LOVE THE ETHEREUM COMMONS

OpenSourceBlockExplorersNOW!�&

DecentralizeDataNOW!

ScalingNOW!