On-Chain Organizations (OCOs) that resemble traditional businesses will be treasury-centric. Imagine a guild of developers, a tokenized asset manager, or a media publishing team. These types of web3 businesses will be valued on their treasury and cash flows. Companies like Braintrust (similar to freelance marketplace Fiverr) and projects like ConstitutionDAO (similar to a Special Purpose Acquisition Company) allows people to imagine what traditional organizations on-chain look like. In preparation for this wave of on-chain organizations (OCOs), we should introduce treasury-centric mechanisms.
Many popular token mechanisms (hyperinflation, yield farming, etc.) optimize for adoption, protocol usage, and price appreciation. Treasury-centric OCOs with long time horizons must consider mechanics that optimize for long-term treasury growth. As the crypto industry climbs the technology adoption curve toward the “early majority”, we need structures that provide stability to both builders and investors.
There are better incentive structures that encourage investments, reduce financial risks, protect entrepreneurs, decrease speculation, and emphasize long-term value creation. Thanks to the programmability of web3 capital stacks, we can devise superior incentive alignment between operators, investors, clients, and vendors.
Goals of Treasury-Centric Model
Align incentives for long-term treasury growth
Transparent and automated reporting/accounting
Programmatic formation & liquidation