DCOs are essentially self-organized online commons which use the blockchain technology to give its members specified rights within the organization.
The following article provides information for joining this burgeoning revolution in collaborative organization by guiding you through the steps to creating your own DCO.
A DCO could take on any large or small project.
This is a walk-through for those making a Distributed Collaborative Organization (DCO) using the swarm.fund platform. Who should use this? Any organization that wants to have wide engagement!
A DCO is a new type of organization that allows you to organize bottom up instead of top down. It’s the best organization that puts the community at the center and enables abundance for everyone in the organization. You could also think of it as kickstarter with benefits.
Benefit #1: Tokens
The token system builds on blockchain technology and allows you to easily get a tally of who your supporters are. Another nice feature is being able to grant token holders the ability to vote on important issues in a fully transparent way. Projects launched on Swarm also provide coaching, marketing advice, and launch materials to make sure your project is successful.
Benefit #2: Cruise Control
Not only can you operate a DCO with full transparency, but you can literally allow the whole community to be in charge of the project with no middleman. The DCO can be designed to reward work the community finds valuable.
Benefit #3: Change
Tokens within the DCO network can be easily traded from one project to another. Anyone wishing to depart from the project can redeem their tokens whenever they want.
5 Steps to Making Your Own DCO
Step 1: Click the green button! “Create a DCO”
A small form will slide out so you can provide some information about your DCO.
Step 2 : Create a statement of intent.
Describe how your members will provide value to your community, explain how they will be rewarded, and share how decisions will be made.
Step 3 : Establish the contract for your DCO.
The standard organizational structure allows for people who are leading the organization and stakeholders. State who these people are. There are a few samples here.
Step 4 : Distribute tokens to existing stakeholders.
This can be done before launching the project, during the project, or at the end of funding milestones. How you use tokens and whether you decide to use tokens is up to the DCO.
Step 5 : Exchange tokens for funds.
If you notice there is demand for a product your community needs, you can offer your DCO tokens in exchange for funds.
Graphics by Kathrine Reyes and Ruben Alexander.