Today, we are breaking down DAOs. Our new host Eric Golden is joined by Aaron Wright, a law professor at Cardozo School of Law and founder of Tribute Labs, who literally wrote the book on Blockchain and the Law. There is no better person than Aaron to help explain the purpose and power of decentralized autonomous organizations, also known as DAOs.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----   This episode is brought to you by Coinbase Prime. Coinbase Prime combines advanced trading, battle-tested custody, financing, and prime services in a single solution. Clients have used our comprehensive investing platform to execute some of the largest trades in the industry because we are the only publicly-traded company with experience trading and custodying crypto assets at scale. Get started with Coinbase Prime today at coinbase.com/prime.   -----   Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag    Show Notes [00:01:39] - [First question] - How a lawyer ends up in crypto and early thoughts of what a DAO could achieve [00:05:09] - Why the first DAO failed and what convinced him to push forward anyway [00:08:28] - Forming the LAO several years after Ethereum and why it was his starting point [00:11:46] - The original state of LAO and the goals it set out to achieve [00:14:21] - What it is about Silicon Valley that led to having such a blindspot [00:16:03] - Launching Flamingo and achieving such high multiples on returns [00:18:05] - Defining the hive-mind that makes a DAO so special and powerful [00:20:51] - Their investment process, making decisions, and monitoring investments [00:22:47] - Comparing the speed of decision making to traditional VC funds [00:24:18] - Why they own 242 crypto punks and 22 bored apes  [00:26:31] - Internal voting on how to decide which NFTs to buy and how many [00:29:15] - Whether or not they sell their NFTs to rebalance the portfolio or raise liquidity [00:30:56] - How Rage Quitting a DAO works and the implications of leaving  [00:32:12] - Encoding incentives and course-correcting negative behavior [00:34:11] - Varying levels of dedication and freeloading within a DAO  [00:36:36] - A maximum amount of people that could function efficiently in a DAO [00:37:52] - How many DAOs should one person be a part of? [00:38:45] - Thoughts on DeFi DAOs like Compound and Uniswap [00:41:41] - Differences between a DAO and a Wrapped DAO [00:44:02] - Is it possible to achieve this level of organization with fiat currencies? [00:45:34] - Where we are in regards to securities laws and regulations with DAOs [00:47:48] - How far we are from buying tokenized shares of DAOs [00:49:07] - Where to start when building your own DAO [00:51:03] - Other possibilities DAOs could unlock [00:52:30] - The best way to get involved yourself  [00:53:41] - What he’s most focused on building over the next 6 months and 10 years