Imagine a bunch of investors chip in to fund a DAO treasury. With that money, they buy a big chunk of land from some country and build a city on it. They rent out all the buildings, with the income going into the DAO's treasury.
In a democracy, citizens vote and each has one vote.
In a DAO, token holders vote, like shareholders in a corporation can vote to change the CEO.
Requiring all token holders to vote on every budget allocation would be too slow.
So it makes sense for department heads to have DAO wallets that automatically get regular budgets.
The DAO has a Managing Director who can freeze any department head's spending rights if fraud is detected.
The Director has their own budget for salaries and analyst helpers.
The Director has priority proposing motions requiring full token holder votes.
Like replacing a department head with a new candidate.
Unlike term-limited presidents, the DAO's Director doesn't regularly rotate. Corporations don't force out CEOs on a schedule either.
In democracies, regular turnover prevents presidents from entrenching corruption and rigging elections over time.
The DAO Director can't censor token holders or falsify votes though. They communicate uncensored on the open internet. Token holders can live in or outside the city-state. They can be anonymous too. If a token holder dislikes the DAO's governance, they can just sell their tokens.
With multiple competing DAOs, holders can buy into the one they think is better managed.
This model needs free mobility of residents.
Moving countries now involves hassling with visas, laws, and bureaucracy.
A DAO state should allow anyone with money to rent to move in easily. It's a hotel providing utilities, security, and property rights.
As remote work becomes more common, it could be simple for people to change DAO cities if there's no bureaucratic obstacles, since their jobs aren't tied to a physical location.
Residents vote with their feet, choosing the most successful DAO town.
How's that for a mass adopting crypto?
