A few hours ago Charles Hoskinson did a quick live stream reacting to a reddit post and discussing addressing accountability in funding from Voltaire, here's the transcript for those who prefer text format to video (link to video at the end of post) although I recommend you watch the video as it's a whiteboard video.
Hi everyone this is Charles Hoskinson live from warm sunny Colorado always warm, always sunny, sometimes Colorado.
So I saw a really interesting post on Reddit that specifically asked about accountability behind the distribution of funds from Voltaire and actually this is a really good question, so good I actually wanted to do a quick whiteboard video to discuss a little bit about this. So the whole point of the catalyst project. The whole point of Voltaire is to resolve the who pays and who decides so the challenge that we have is that the blockchain itself, Cardano lacks agency Kent doesn't have agency. It is not a real person. It's not a thinking person.
Now, it having been gourts all around. Maybe we can figure out an AGI Cardano to become awake. But as it stands right now, in its current Association Cardano as an entity doesn't actually have the ability to judge whether it got a good ROI return on intention (use that word) for its grants that it gives out. So what we've done is we started breaking this down into a multistage process so there's kind of this submission and discussion process, okay and submission discussion is what is happening with the idea scale platform and we already have last time I checked 2500 people certainly more at this point because that was last week who are in this phase and the lots of back and forth about priorities and structure and ra ra ra so what's lots of things going on and there's some good ideas that we poached out of MIT to basically get through this.
Okay so then at some point it evolves from submission and discussion into a question of final ballot and then you have voting. Now that final ballot when you get that final part right there. Basically you have to have a situation where there are two things that are sorted out. There is the who is going to get the money and then there is the other who (in fact I'll write this who in blue okay), who holds them accountable? Now the thing that people aren't getting is that you actually do not need centralization for the accountable step, what you can do is on a case-by-case basis, ballot by ballot, you can fund both entities at the same time. Somebody who comes in maybe a PWC or the Cardano foundation or maybe a prominent community member or corporation, whatever, and their job is to act as kind of the oversight. So they would ensure things like for example weekly reports or monthly reports are produced, they would audit the code they would verify the claims being made by the fundee are actually there at basically, they act as a stand-in for the fact that Cardano lacks agency. They act as basically the eyes and ears of the community and their job is to be a professional service that does this for each ballot that's funded.
Now to interesting open question of well do we need this for all endeavors, is certain things like for example the funding of a podcast, that's really a qualitative matter, and it's very clear to the entire community, whether they do the job they, don't do the job and your funding people based on their personal reputation. So for small amounts, or you have good external ideas about where these things come from that's fine, but for larger projects it's essential to have this mechanism. This counterparty who will hold the person receiving funding accountable and their job and their paid to do that job is to do that. The good news is this is a whole industry people live in this industry are all around and it's very easy to do that and part of the Voltaire experiment is building out these networks that people take the role. Some people are to live here and there, like VC style people ideation people innovation management people and are very creative and are talking around, and then some people live here which is how do we make sure it's accountable, how they deliver, how do they actually do the things they say they're going to do, and that voting occurs and then voting will go ahead and result in some approved ballots, okay and those approved ballots the funding goes to both parties. Now for very large sums of money, you may want to actually break it up and introduce a 3rd entity and this is a custody partner. So what you do is you don't pay them all up front, some of the money goes here, actually we're paying in ADA so the ADA goes there. The bulk of the ADA goes here and some of the ADA goes here or you can have an approach like this where it all goes to the custodian and then it first goes to pay the auditor, the oversight and then it goes to pay and this entity is a client of the physical entity here.
Okay, so there's all types of contractual parents and relationships occur and exist and actually we are hiring a dedicated product manager to think about the business and social structures that are required for this. Why, because io-global is going to ask for renewal of its contract and we're not just gonna go and say give us a big pile of money and will figure it all out, don't worry about it. We are actually going to come with a group of organizations, some to keep us accountable, some to make sure that is auditing and oversight, some to be custodians and so forth some to deal with liquidity and volatility concerns and as a group say okay let's go vote on this and let's go think about this, and so these particular structures; structures of accountability. That's the term of the day. Are another thing that we are actually exploring with the catalyst project we are not just thinking about how to get participation. How do you create incentives. How do you get great ideas and transform them into findable, grantable ballots but were also asking how do we make sure we have good outcomes. Now, even with these great structures and these great auditing entities and so forth you will have failures, lots of them. A lot of these things will be failure to launch or issues.
So the last part of it is that feedback loop where the knowledge that we gain from these failures it goes all the way up to (zoom out a little bit) all the way up here to the submission discussion phase and we get another loop to the structures of accountability. We tend to get rid of ballots that we have historical high failure rate with for variety reasons and we tend to change the way that we funded work with people over time with the structures of accountability because, well, it turns out it's not really doing the job for us. This is why catalyst is like this, it's like a reverse funnel and we're starting with 250K and over time the funds get larger and larger until they get into a natural monthly cadence of the same size, only increasing as the price of ADA goes up. So this is the learning phase. This is the beta phase work, where we're kind of learning how to vote. We're learning how to talk to each other, we're learning how to write ballots we're learning how to build roles and responsibilities, and some people are very good at being critics, some people are very good at being executor, some people are very good at checking the T's and dotting the I's and so forth, and those roles and responsibilities, those structures of accountability are emerging and then eventually gets to a point where the system is stable and more comfortable and there's kind of a natural way of doing business for big guys like my company all the way down to hey I want to get a little bit of money to have a booth at a Cryptocurrency conference, the Cardano booth and man that.
There's going to be a scale there were there's structures in place for each and every one of these asked and then the single most important thing is we just make sure that we have good feedback in the system, and you know what we will keep adding should our contract renewed one of the partners that will be in that consortium that comes together will be a dedicated firm that studies the management innovation measure the execution all of these things, probably from like a prominent place like MIT or you know some other major business school. There's dozens in our network and we'll bring some professors and some practical business people together and some of consultants together who basically look at the whole thing and they'll regularly examine the structures of accountability they'll take a look at the quality our feedback loop, and these other things. Now that will take years for all of this to get to a point where it is stable and completely reasonable, but you know there are milestones along the way good enough to get us to the next stage of evolution good enough to get us to the next stage of the evolution and does a particular matter if it takes 25 years for the entire evolution to occur? No, because by the time were done with it we will have the single best innovation management platform in the world built right into the heart of our system with tens of thousands if not hundreds of thousands of people actively participating with that across the globe doing amazing things. This is the vision of catalyst. This is the vision of Voltaire. This why we do what we do. So I love questions like this because it tells me you guys are thinking. We have the smartest community in the Cryptocurrency space we really do. Nobody just takes things axiomaticly, they don't just say okay and just go with that no, no, no, they say hey wait a minute I wasn't born yesterday, what, what's the story here, and then we talk about it. So we're definitely having great success. There is great town halls going on right now, tons of feedback, tons of knowledge is being gained and as we get into the very first voting round I would highly encourage you to ask yourself does this ballot need a counterparty to hold them accountable or am I comfortable with them being self-regulating with community oversight for that. If for a large amount of money there needs to be accountability partners at the $250,000 range for many different funding proposals probably not, especially in the people's reputation would be destroyed if they don't deliver. But when we talk about millions tens of millions, hundreds of millions of dollars, which eventually will be in the purview you need accountability partners to connect them together and hold you accountable for that delivery, make sure that you are honest, to look at all the things you do and then the structures of accountability will build all throughout 2021, and feedback loops will tell us basically if these things are right or wrong and will keep adding; so we'll add some people who study this stuff for a living they'll come from very diverse background from the sociocracy side all the way down to the role management theory and big business school type people and they've been thinking about this a long time and there's lots of consultancies that are chomping at the bit to get involved in these things cause it's very exciting for them as well, they very rarely work on something so innovative.
Okay so thank you all for listening. I hope this video helps a little bit about accountability and you know keep asking your questions. I read the Reddit questions. I read the telegram question. Sometimes it takes me a little of the time to answer them because I'm busy and there's other things going on but this is how we learn this, this is how our ecosystem gets better. Until next time. Have a nice day, cheers.
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