'Docklands DAO' pilot scheme to help Melbourne precinct recover from coronavirus

Royal Melbourne Institute of Technology (RMIT) Blockchain Innovation Hub (Blockchain Innovation Hub) has released a report recommending the implementation of decentralized autonomous organization (DAO) pilots to help select jurisdictions in the Melbourne CBD recover from the impact of the epidemic .

The report, part of a five-part series funded by the government of the state of Victoria in Australia, details how blockchain technology — and DAOs in particular — could be used to help cities like Melbourne recover from the lack of economic activity during the pandemic, and survive the likely persistence of hybrid work arrangements.

The report, produced in consultation with the City of Melbourne, the State Government and local businesses, outlines detailed and actionable plans for a DAO pilot called 'Docklands DAO', which will be built on the waterfront in Melbourne's CBD. Implemented in Docklands.

The report was authored by Dr. Max Parasol, a fellow at the Center for Blockchain Innovation and a contributor to Cointelegraph Magazine.

He told Cointelegraph that DAOs offer an innovative way for cities to use anonymously pooled data to optimize resource allocation, increase overall efficiency, and create opportunities for strategic placement (to jointly reimagine and transform public spaces).

DAOs are crowdsourced entities governed by token holders and organized around a specific set of rules enforced on the blockchain.

"The DAO encourages participation, so those who work for the DAO will gain more governance power, etc... Ultimately, the community decides on the governance mechanism," Parasol said.

DAOs have seen rapid adoption across the globe as the technology is used by more and more organizations seeking to explore the possibilities offered by blockchain-based digital voting mechanisms.

At the end of 2021, more than 1.6 million people participated in some way in the DAO, which is a huge increase from the total participation number of 13,000 in early 2021.

Parasol added that the Docklands DAO aims to address what he calls the "double shock" of the local need to recover from the economic fallout from the COVID-19 lockdown while also adapting to the new reality of a hybrid work-from-home model.

Parasol believes that the DAO is a key step in perfecting the "smart city". "Smart cities" refer to cities that use different types of technology, such as voice detection and motion sensors, to collect specific data.

"Smart cities were originally designed as public-private partnerships between governments and companies collecting data and then reverse engineering that data to build smart cities."

DAOs remove data ambiguity and centralized control, Parasol added, “Instead of a smart city being controlled by a centralized partnership between a government and a data service like Cisco, a DAO delegates the processing of data to a specific community".

"With the Docklands DAO, you get a specific type of DAO called a 'data trust', where information -- such as traffic data -- is handed over to the DAO in an anonymous and secure manner, and the DAO then decides what to do with the data ...it's all based on community governance."

It is becoming more common for communities to use DAOs as a potential way to increase the efficiency of their local districts. A DAO called ATX DAO launched last September in Austin, Texas, with the aim of educating citizens and surrounding governments about cryptocurrencies while funding new projects in the local community.

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