Keen observers of our community may have noticed that things have been a little quiet since the launch of the Governance Phase of the Freeos Economic DAO.

Behind the scenes, a plan has been unfolding to initiate the second phase — the next piece of the puzzle that is designed to help close the loop and tie together the pieces of this little revolution that has been long brewing.

For the last couple of years we have been busy building the Freeos Economic DAO — a vision of a shared economy managed directly by the people, for the people.

Now launched, the Freeos Economic DAO represents our initial attempt at building a tool of financial freedom where the activity and stewardship of the participants initiates — and equitably distributes — the creation of a shared, people-managed currency.

Freeos flips the script on our current systems and looks at a model that represents a vision for a different type of resource flow that starts at the roots and nourishes throughout the system.

Building Bridges

Web3 is not (yet) easier — especially if done right.

But if done correctly, Web3 allows far more freedom, security, respect, autonomy and freedom than our existing systems allow. The promise of Web3 is a world where people have a say in their voice, their assets, the systems they belong to, the communities they associate with and the direction they wish to move.

Building systems that lead to that promise are hard.

Building systems is hard enough, building bridges is even harder.

Building bridges for the existing systems, such as traditional banking. Like what Metallicus has been building towards with interconnected pieces such as Proton, Metal Pay, ProtonKYC and the Metal blockchain.

Building bridges to the existing systems, such as Web2 and other blockchains. Like what the Dfinity Foundation has been building with a blockchain that can host websites, connect to Web2 APIs and other blockchains securely in a decentralised way.

Like these organisations, Freeos refuses to accept the vast levels of disconnect that can be observed increasing in our global societies. Instead, we chose to build bridges.

But our bridge building is voluntary and respects choices and freedom. Our bridges open for those that wish to build a pathway across. It is not a complete disconnect.

There is always somewhere where we can find common ground.

We started with currency. Every political campaign tends to be ultimately about the economy. After all, people care about their financial well being.

So we started with a system that gives people direct autonomy over their own financial system — using many of the platforms provided through the visionary efforts of Metallicus and the Dfinity Foundation to create something unique and fresh.

A DAO where the people manage their own monetary policy and supply through direct democracy with verified individuals.

A DAO that is a direct bridge to the source of the currency for each and every individual.

A DAO where incentives are aligned to support a healthy economy. Each individual is bridged to each other, creating strong network effects.

The Long, Hard Path

Like Metallicus and the Dfinity Foundation we took the long hard path to ensure the system truly delivered on it’s promise and potential.

Instead of pre-minting (pre-mining), we devised a system where the activity of the participants earned potential rewards (in the form of Points).

Points were created so each individual could manage their own minting process. This allowed participants some freedom in choosing whether they wanted the UBI-like, internal-only FREEBI token — with no upfront Mint Fee — or whether a Mint Fee would be paid for the convenience of a freely and openly transferable FREEOS.

Points also helped manage taxable events (in some jurisdictions) and through locking mechanisms, helped the community HODL; thus limiting inflation, in times when the economy is vulnerable.

It would have been so much easier to pre-mint a bunch of tokens and create a smart contract that just distributed them weekly like a UBI project, such as Good Dollar, the Pi Network, Proof of Humanity, and Circles.

Additionally, to ensure that there weren’t any governance tokens that may have been seen similar to shares — or Securities — the Freeos Economic DAO works with the built-in KYC of the Proton Chain to ensure that individuals can simply participate for free and start earning tokens.

No need to purchase tokens upfront to get started. Like the early days of Bitcoin, the system is open and accessible.

It would have been easier to have staked governance tokens, like many other systems, but this would have flirted heavily with Securities Law, and would have created an upfront cost — and friction — to enter the system.

We envisioned a system that is Sybil Resistant, but easy to get started. By allowing people to spend their time stewarding the economy, they can earn Points which can be turned into FREEBI or FREEOS tokens at the individual’s discretion.

We also envisioned a system that is as decentralised and chain-agnostic as possible. This is why we hosted our frontend on Dfinity’s Internet Computer and our backend on Proton making a Proton/IC tech stack.

It would have been easier to just choose one chain, and host our front end interface on a centralised web hosting service.

Over time, our choice in this tech stack will lead towards replacing any remaining centralised systems with more decentralised, unstoppable systems.

There’s a reason other Web3 systems have token-based governance that ends up often as plutocracies. It is easier.

There’s a reason other Web3 systems pre-mint and sell tokens, putting many at the risk of being involved in pseudo-ponzis, or rugpulls. It is easier.

There’s a reason other Web3 projects simply host their frontend on centralised Web2 services. It is easier.

But we wanted a system that respected the principles and promise of the revolution initiated by Satoshi in the best way we could envision.

And, even with our many wins behind us, building towards that vision is still very much a work in progress.

Closing the Loop

What if cooperation displaced competition to be the prominent player in the game?

We originally debated whether we should start with a DAO, and have the DAO build Freeos.

But instead we decided to build the economic engine as a type of DAO that would eventually be the vehicle that carried us — and build the wider governing DAO afterwards to maintain Freeos.

Not just “us, the team”, but “us, the community. All of us.

While building out the DAO to maintain Freeos, our attention turned to building not only a singular, bespoke DAO, but DAO-building tools for the community to spin up DAOs for whatever purpose they see fit.

And now that the Freeos economic engine is built as a Minimum Viable Product, our attention has turned — very heavily — to building out these DAO tools that will be the bedrock that hooks into the Freeos Economic DAO — to spin up dozens, hundreds, and potentially thousands of DAOs.

DAOs that all can leverage the Sybil-Resistant, one person = one vote, democratic systems.

DAOs that free up people to come together and pool their talents and resources to create goods and services — with some actualising their potential to build true value.

DAOs that can allow people to leverage their talents and capital to cooperate and build together with a truly democratic foundation.

And DAOs that are encouraged and incentivised to utilise FREEBI and FREEOS tokens.

We have our shiny, new Freeos Engine. Now it is time to use it in a number of DAOs, all designed to carry us further, by carrying us together.

And most importantly, the DAOs that can be built by these tools can create organic and authentic demand for FREEOS and FREEBI by leveraging network effects to build value together as a community.

Network Effects, Value Building and Demand

To be a useful currency, supply needs to meet demand.

The Freeos Economic DAO has many systems all designed for the community to manage and govern the supply, but there (currently) is only one way for the community to govern demand — the Mint Fee.

This is a start, but it isn’t enough to make a true currency. It is like having a nation where taxes are collected (demand) but there are no working shops or services to be the truly authentic and dynamic demand.

And if there isn’t a flow of currency, there isn’t much of an economy.

So the next stage of development is to create tools where people can come together to create goods and services in the form of the most business-like structure Web3 has available: DAOs.

Decentralised Autonomous Organisations currently manage over 10 Billion USD in assets, and this is growing rapidly. Over two million people actively participate in DAOs, and this number is also surging.

DAOs allow people to come together with their talents and manage a shared treasury of assets in a unified direction. If businesses are the lifeblood of any traditional economy, it can be imagined that DAOs are poised to be the lifeblood of the Web3 economy.

And the DAO creation tools FreeDAO is currently building — can allow DAOs to thrive in the Freeos Economic System.

How?

Let’s talk first about an economist named Richard Werner.

Richard Werner has spent most of his career as an economist looking at empirical proofs of how economies truly function.

His observations usage of capital, like the adoption of new technologies, productivity-boosting measures, or the development of novel goods and services (whose value exceeds the mere sum of their inputs, thereby adding value), neither asset price inflation nor consumer price inflation will actually occur.

One of the conclusions reached from his observations is that extremely high economic growth can be reached — without inflation, crises, or unequal distribution of wealth — by ensuring that the creation of money is closely tied to legitimate, productive purposes.

This is how the East Asian “miracle economies” of Japan, Taiwan, Korea, and China were able to grow so quickly.

This is how FDR’s New Deal pulled America out of the Great Depression.

This is how Post-War Germany recovered and grew their economies.

This is how Consensus — combined with VC Funds — grew the Ethereum ecosystem.

By applying supply to the creation of goods and services that — in turn — grew demand.

Then supply can rise to meet this authentically generated demand.

Utilising money effectively enhances the distribution of available resources by mobilising supply and generating the required demand for the outcome.

And with DAOs being able to be easily spun up, with hooks into the Freeos Economic System, this can allow the productive use of capital to incentivise goods and services to be built that can impact the entire ecosystem.

In the diagram above, there are 4 main points illustrated:

1. The Freeos Economic DAO has many democratic controls over the supply of the currency — that are restricted heavily when the economy is fragile. Limited supply can have a protective effect on the price of the token. But when the economy heats up and the token price increases, more supply is capable of being released.
2. The FreeDAO Foundation (and DAO) receives a percentage of the weekly Mint even when the economy is fragile. This allows the Foundation to distribute grants in freely tradable FREEOS tokens towards ecosystem-building projects in the form of DAOs
3. Groups of individuals that wish to use the DAO-building tools to spin up DAOs that benefit the entire ecosystem can be awarded grants by the FreeDAO Foundation. Some of these DAOs may build goods and services that use FREEOS (or FREEBI) tokens and create demand for these tokens.
4. Authentic demand for the goods and services that use the FREEOS (and/or FREEBI) tokens has a reasonable chance of increasing the price of the token on the open market. This, in turn, heats up the economy and releases locked POINTs that can be used to mint more FREEOS/FREEBI — to be issued to match the demand. Supply now meets the demand in a natural and authentic way.

It can be further added, that it wouldn’t be hard to imagine that if the token price increases, more participants will be attracted to join the Freeos Economic DAO to earn weekly, making a larger market for more DAOs to service.

And this dynamic, in turn, increases the network effects of this economy.

Network effects are powerful, and have been attributed to represent 70% of all value created in technology since 1994.

The Freeos Economic DAO heavily leverages many network effects to help build value — together — in several ways:

1. Collective decision-making: By allowing all participants to vote on a shared monetary policy, the Freeos Economic DAO creates a sense of ownership and shared responsibility among its members. This collective decision-making process can create strong social ties among participants, increasing their loyalty to the organization and their willingness to invite others to join.
2. Shared value creation: As more people join the Freeos Economic DAO, the collective well-being of the group may improve, resulting in increased value for all participants. This shared value creation can create a virtuous cycle of growth, as more people are attracted to the organization and the value it creates.
3. Positive externalities: The activities of the Freeos Economic DAO may generate positive externalities that benefit not just its members, but also the broader community. For example, the organization may invest in projects that have a positive impact on the environment or support social causes. These positive externalities can attract new participants to the organization and increase the value of membership.
4. Network effects of the underlying blockchain: The Freeos Economic DAO is built on a tech stack that utilises the Proton and Internet Computer blockchains, which itself has network effects. As more people use and transact on the blockchain, it becomes more valuable and useful to all participants. This can drive adoption of the Freeos Economic DAO and create strong network effects.

Overall, the Freeos Economic DAO has the potential to build strong network effects by creating a sense of collective ownership, shared value creation, positive externalities, and leveraging the network effects of the underlying blockchain.

Additionally, the upcoming DAO-building tools for the Freeos Economic DAO have the potential to generate strong network effects in several additionally powerful ways:

1. Increased interdependence: As more independent DAOs are built on the Freeos Economic DAO platform, they will likely become more interdependent with one another. This interdependence can create strong network effects, as each DAO’s success becomes more closely tied to the success of the others.
2. Shared resources: The Freeos Economic DAO platform allows DAOs to share resources such as funding, infrastructure, and expertise. This shared resource pool can create economies of scale and increase the efficiency and effectiveness of the individual DAOs, leading to stronger network effects. Grants from the FreeDAO Foundation will help to accelerate these network effects further.
3. Increased specialization: The ability to easily spin up new DAOs allows for increased specialization within the Freeos Economic DAO ecosystem. This specialization can lead to more specialized and high-value goods and services being produced, increasing the value of the ecosystem as a whole.
4. Collaborative projects: The Freeos Economic DAO and the new DAOs created within its ecosystem may facilitate collaborative projects among its members, such as research initiatives, NFT co-ownership, cooperative service projects, business-like activities or other types of collective endeavors. As more people join these projects, the value of participation increases, creating strong network effects.
5. Platform effects: The Freeos Economic DAO and the new DAOs created within its ecosystem may become platforms for other businesses or organizations to build on, creating a network of interconnected organizations. As more businesses or organizations join the platform, the value of the platform increases for all participants, creating strong network effects.
6. Network effects of the underlying cryptocurrency: The Freeos Economic DAO and the new DAOs created within its ecosystem may FREEOS/FREEBI as a medium of exchange, which itself has network effects. As more people use and transact with the cryptocurrency, it becomes more valuable and useful to all participants, driving adoption of the Freeos Economic DAO and the new DAOs.

As can be imagined, the upcoming DAO-building tools have the potential to generate strong network effects that vastly extend the ones generated by for the Freeos Economic DAO.

Freedom For — Freedom Together.

The Freeos Economic DAO aims to bring increasing freedom to its participants in several ways:

1. Financial freedom: By participating in the weekly voting process, members of the Freeos Economic DAO can earn an income in crypto, which can give them financial freedom and independence.
2. Decision-making freedom: The Freeos Economic DAO is based on the principles of direct democracy, which means that all members have an equal say in the decision-making process. This gives them freedom to shape the direction of the organization and influence its policies.
3. Freedom to join and leave: The Freeos Economic DAO is voluntary, which means that members are free to join or leave the organization at any time. This gives them freedom to participate in the organization at their own discretion and align their economic interests with those of the group.
4. Freedom from central control: The Freeos Economic DAO is decentralized, which means that it is not controlled by a single entity or group. This gives members freedom from central control and the ability to participate in a more equitable and inclusive economic system.
5. Freedom to create and innovate: The Freeos Economic DAO and the upcoming DAO-building tools allow members to create and innovate within the ecosystem. This gives them freedom to explore new ideas and contribute to the collective well-being of the group.
6. Freedom to collaborate: The Freeos Economic DAO and the new DAOs created within its ecosystem provide a platform for collaboration among its members. This gives them freedom to work together and share resources to achieve common goals.
7. Freedom to access new opportunities: The Freeos Economic DAO and the new DAOs created within its ecosystem may provide access to new opportunities and resources that might not be available elsewhere. This gives members freedom to pursue their interests and explore new paths.
8. Freedom to participate in a more inclusive and equitable economic system: The Freeos Economic DAO is designed to be more inclusive and equitable than traditional economic systems, which gives members freedom to participate in an economic system that values cooperation over competition.
9. Freedom to shape the future of money: By participating in the Freeos Economic DAO, members have the freedom to shape the future of money and contribute to the development of a more equitable and sustainable economic system.
10. And lastly, this DAO is: Free to enter, Free to participate, Free to vote, Free to Earn, Free to choose which type of token to mint — and when.

That’s a lot of freedom.

Which makes sense, because Freeos Economic DAO is all about freedom!

We figured it would be pretty obvious from the name.

And, after all, *Freeos rhymes with “free us”!

*(not an operating system)

And not just freedom for one person, but for everyone in the group.

That’s because when we all work towards a common goal, magic happens.

It is vital that the Freeos Economic System is centred on freedom as a group, together, because this approach aligns the interests of all members and creates a more cohesive and cooperative community. When everyone is working towards a common goal, it is easier to build trust and solidarity, which can lead to more effective decision-making and a stronger sense of belonging.

A system designed to build trust, solidarity, and a strong sense of belonging.

In addition, centering the Freeos Economic System on freedom as a group, together can help create a more inclusive and equitable economic system that values cooperation over competition — which means a more inclusive and equitable economic system for all.

This can foster a sense of shared purpose and common cause among members, which can be especially powerful in times of crisis or uncertainty.

Overall, centering the Freeos Economic System on freedom as a group, together is important because it helps align the interests of all members, promotes cooperation and solidarity, and creates a more inclusive and equitable economic system.

So let’s join forces and make freedom for everyone a reality!

If you have any questions to ask, feel free to share them in our community channels such as Twitter, Discord, Telegramand now Snipcoins!