Hierarchical Economy

Taking full advantage of blockchain and tokenization to implement dynamic relationships between the different divisions, or subsidiaries, of a Web3 organization.

Any non-trivial organization inevitably needs to manage its business through separately focused divisions or subsidiaries; blockchain and tokenization can offer groundbreaking efficiency and flexibility in this area. Ink Finance intends to make the creation of sub divisions within a main (or meta) DAO an intuitive effort, and makes it easy for them to establish their administrative and economic hierarchical relationships on-chain. With these features, even merger & acquisition between DAOs can be implemented with elegance.

The design goal is to support the balance of hierarchical control, the specialization and autonomy of the sub divisions, forming a flexible and customizable organizational structure to generate efficiency, while preserving and maximizing the meta DAO’s value.

A meta DAO is like a controlling group or an umbrella company in the traditional world. Its main tasks include brand development, technological development, top-level (or protocol-level) resource management, the utility definition and its monetization scheme, among others.

Sub DAOs are like subsidiaries of a controlling enterprise in the traditional sense. They are set up to carry specialized sub ecosystems that can represent regional or task-specific communities. For example, a sub DAO can be set up to focus on socialized marketing, with its very specific governance, management, and incentivization rules reflecting its autonomy. Such a sub DAO may want to further allocate its resources and delegate tasks across several geographical sub sub DAOs. Other realistic sub DAO examples include the developer community for a Web3 protocol, an NFT investment community within a metaverse, a royalty financing community within a media IP DAO, etc.

The design objective is to provide enough flexibility and intuition for users to establish various administrative and economic relationships between meta-sub (and sub-sub) DAOs.