Cultural Frameworks

Building Balanced and Sustainable Systems: Integrating Elinor Ostrom's Principles for Decentralized Economies

why commons

Integrating Ostrom's Principles for Decentralized Economies

Our cultural frameworks are built upon thorough academic research on commons governance, ensuring social development, ethics, safety, and accountability. Within a DAO framework, we provide clear guidelines and cultural practices, transforming Elinor Ostrom's principles into actionable strategies is a large part of the process.

These cultural frameworks serve as a comprehensive roadmap for effective decision-making and collective coordination within blockchain-based communities.

The 8 Principles

Let's delve deeper into Ostrom’s principles and their related practices.

1. Clearly defined Boundaries

To establish a thriving commons, it is crucial to have clearly defined boundaries that determine shared resource access, usage rights, and protective measures. Our cultural framework emphasizes the need for boundaries that strike a balance between flexibility and stability, allowing for necessary adjustments over time.

  • Onboarding/Offboarding: Clearly communicated instructions for community entry and exit.
  • Work Agreements: Defining roles, responsibilities, and accountability within the commons.
  • MVV (Mission, Vision, Values): Ensuring alignment and purpose by sharing the commons' mission, vision, and values.
  • Community Covenant: A constitution that members must sign, outlining their commitment to the commons.
  • Access to Resources: Transparent guidelines for accessing the commons treasury, including proposal templates, grants cycles, and submission fees.
  • Trusted Seed: Collaboration with mission-aligned individuals invested in long-term community sustainability.
  • Token Vesting: Token engineering parameter preventing immediate token selling, fostering long-term commitment.
2. Congruence between Appropriation and Provision

To ensure the sustainability of commons, rules should strike a balance between resource provision and appropriation. Recognizing that one-size-fits-all approaches are inadequate, our cultural framework allows communities to develop and modify their own rules as needed.

  • Financial Roadmap: Economic development plans for commons economies.
  • Clearly Scoped Revenue Models: Defining how the common pool will be maintained, the utility of the common token, and the goods and services offered by the community.
  • Ecosystem Value Flows: Mapping the stakeholders and value exchange within the community ecosystem.
  • Funding Proposal Guidelines: Clear instructions for requesting funds and aligning their use with the shared mission.
  • Reward System/Compensation: Transparent compensation mechanisms for contributors, beyond the proposal engine.
  • ABC (Augmented Bonding Curve): A market regulator providing liquidity through entry and exit fees, supporting small economies.
3. Collective Choice Arrangements

Effective decision-making necessitates inclusivity and participation. All individuals affected by the rules should have a say in creating or modifying them. This principle fosters trust, cooperation, and a sense of ownership among community members.

  • Advice Process: Involving those most affected by the rules in the decision-making process.
  • Polycentric Governance: Embracing multiple layers of governance, fostering an environment of agency and collaboration.
  • Reputation System: Recognizing and rewarding contributions, building trust within the community.
  • Collaborative Economics: Promoting cooperation and mutual support in economic interactions within the community.
4. Mutual Monitoring

To ensure the sustainability of collective agreements, there must be a system in place for observing and assessing community behaviors and conditions. Our cultural framework encourages a caring and supportive approach to monitoring, rather than relying on external agents to enforce accountability.

  • Resource Monitors: Community members accountable for monitoring resource usage and compliance.
  • Praise: Recognizing and celebrating positive contributions to the community, community members get updates about what others are doing through a positive lense.
  • Praise Cultural Analysis: Analyzing cultural dynamics and recognizing their impact on the commons.
  • Transparency/Public Sharing: Promoting open sharing of information and community insights.
5. Graduated Sanctions

Internal mechanisms for managing rule-breaking behavior are essential for maintaining community values and protecting the commons. Our cultural framework advocates for graduated sanctions that balance forgiveness and community protection.

  • MVV and Community Covenant: Serving as guides for behavior and rule adherence.
  • Graduated Sanctions: Clearly defined consequences for violating agreed-upon rules, focusing on corrective rather than punitive measures.
  • Clear Evaluation and Application Process: Defining who evaluates and applies penalties and how.
6. Conflict Resolution Mechanisms

Accessible and affordable conflict management is crucial for diverse communities. Our cultural framework promotes non-violent communication and holistic well-being, reducing the need for sanctions and fostering trust, fairness, and cooperation.

  • Conflict Management Accessibility: Ensuring conflict resolution resources and mediators are available to all community members.
  • Development of Non-Violent Communication and Mediation Skills: Equipping community members with self reflection and communication tools to prevent conflicts from happening and to have a better sense of how to deal with it when they do happen.
7. Recognition of Rights to Organize

Communities should have the autonomy to self-organize and create their institutions, safeguarding their resources and members. Our cultural framework encourages proactive measures to ensure legal awareness and establish partnerships for legitimacy and protection.

  • Regulatory Research: have a dedicated working group or an individual responsible for checking relevant regulatory opportunities or impediments to protect and respect the autonomy of the community.
8. Nested Enterprises

Recognizing the interdependencies between multiple layers of governance, our cultural framework emphasizes the importance of mapping the ecosystem and fostering collaboration between communities, institutions, and organizations.

  • Network and Partnerships: Building connections with larger and smaller communities, institutions, and organizations.
  • Ecosystem Mapping: Understanding the relationships and interdependencies within the community's broader context.