Better organisations have lower transaction costs

To quote A Prehistory of DAOs:

 …markets create unaccounted for transaction costs. These transaction costs could arise from price discovery, contract negotiation, or onboarding for a service, which can be mitigated by retaining services in a company.

… the promise of DAOs lies in using technical governance protocols to reduce transaction costs.

Better organisations reduce the transaction costs of collaborating. Hiring, co-ownership and other format contracts are attempts at aligning incentives and lowering the barrier to collaboration. An essential part of this is cultivating a high-trust environment, where it is easy to form relationships and get stuff done.

Heterarchical organisations like those described in heterarchies-are-the-ideal-civil-society, are good at aligning incentives across a plurality of people. The ability to coordinate across different levels of trust, in a heterarchy, would allow these network collectives to solve locally-complex problems on a global scale which is relevant to wicked-problems and local-care-for-global-health.

Caption: The global sequence of protests after George Floyd’s death is an example of network collaboration en-masse.