I found this distinction between companies & DAOs interesting.

> "the point of a company is to align everyone to achieve something specific; to converge everyone's work on a centralised axis. This is "strong alignment", in the sense that everyone must work together to achieve a convergent outcome."

I agree here - ensuring everyone is rowing the company's boat in the same direction is key. This is one of the reasons I like (small) companies - they're like sports, where the goals are very tangible.

> "Consider a large network arrangement like a democratic nation state. A nation is composed of many individuals and organisations all contributing to its growth and change. However, the complexity of a nation ensures that no single entity can appreciate it as a whole, not even a President.

> Instead, each is embedded in a context, like a local community, a business, or a social circle, and interprets the nation in its own way to make decisions that affect that context. As they make decisions, like starting a business, voting on governments, or forming new relationships, the structure of the network meaningfully changes in response.

> This makes it challenging for nations to pursue a specific, unified agenda. Instead, they more successfully focus on highly interpretable goals like increasing GDP and improving the quality of life.

> Similarly, in a mature DAO, individuals will be able to understand a part of the network (local context), but they will not be able to appreciate it as a whole (global context). Individuals will interpret the DAO in their own way, and explore directions that affect their local context without having to consider the context of the whole. As they make decisions, the structure of the network will self-organise in response."

This analogy is intriguing.

I agree that Big DAOs could become like nation-states because people are free to do whatever they want and can typically make money through their DAO-related initiatives. And just like with nation-states - if they want to get public money, some bureaucracy is involved.

Wondering what would be an example of well-ran DAOs that might fit this description. Nouns maybe?