With more and more fractal-like DAOs springing up, I think it is time to start thinking about how these fractals could interact and organize among each other. Here I will propose one obvious model, which uses a concept of what I think could be called “a higher-order fractal”.
In mathematics, a higher-order function is a function that either takes functions as arguments or returns a function. In other words - it is a function that deals with functions instead of just variables. In the same vein, a higher-order fractal would be a fractal composed of fractals or other kinds of DAOs instead of individuals.
This creates a fractal pattern, so obviously, it does seem like a natural solution for organizations called “fractals”, but it does raise some critical questions about how meetings and consensus process of this higher-order fractal would work.
In summary, I suggest that higher-order fractal can simply use the same Respect game and top-contributor-based consensus process as some existing fractals use, except the people participating in meetings would be representatives of DAOs (1 representative per DAO) and Respect would be awarded to a whole DAO. Consensus meetings of higher-order fractal should happen less often and there might be some additional small changes needed. I try to cover those in the Design section. But first, let’s talk about why we might want this.
Respect game at the core of a fractal process, is a very straightforward way to create a common ground for all the DAOs, without much organizational complexity (which would be hard considering we are talking about DAOs organizing not individuals). This common ground can have the following benefits.
We have already noticed that each new fractal often mutates a little in its processes. Some fractals make bigger changes, some smaller, but creators of a new fractal almost always put their twist on it. Plus you have kindred DAOs like Upscale (former Eden) and other DAO ecosystems which share a lot of common values with fractals (like Hypha DAOs).
All this variety is very healthy for the ecosystem. We don’t know which processes are the best, but through this variety of experiments, we create data that can be used to compare all of these different governance workflows.
This is where this higher-order fractal can be invaluable. One periodic meeting where each DAO presents their progress and then reaches consensus on rankings among themselves can create a very crucial data point for comparison of DAOs and their processes. Not to mention that rankings and Respect distribution that these meetings will output, will by themselves be a very interesting and telling metric.
It’s one thing to listen to a presentation of what an individual did throughout one week, it’s whole another thing to listen to what a group of people did in a month or a couple of months. While the former typically just talks about an in-progress work being done, the latter can become a demo of an actual product of that work. This will provide useful content for what these communities are achieving that is meaningful to an outsider and not just old participants.
It is also easier to evaluate and compare products of work rather than promises of effort being spent. By extending time between meetings and allowing groups of people to be represented we will move towards presentations of products rather than effort.
Higher-order fractal creates an opportunity for positive collaborations of people to get noticed and get reputation. Reputation can lead to other great things for a DAO like new members and potential funding.
This I think can be a motivating factor for contributors. Higher-order fractal meetings will add more meaning to work performed by individuals in the sub-DAOs because it will add up to something bigger that will be recognized and evaluated at the end of the period.
It will also create opportunities for DAOs to learn more about each other and collaborate.