2019 FINTECH PREDICTION: Real Autonomous Organizations Take Shape

Source: Images from Pexels,     2019 Keystone Predictions Deck

Source: Images from Pexels, 2019 Keystone Predictions Deck

The last 5 years have seen fundamental innovation in crowdfunding, regulatory technology, the digitization of financial services, blockchain native organizations, and automated propaganda bots to attract human attention. 2018 brought with it sobriety and a back-to-traditional regulatory treatment of financial assets and their structures. In particular, the crypto asset movement (and its crypto-anarchist community construction) has been put into a well-understood, regulated box by most national regulators. While many interesting lego pieces exist, none of them have yet to fit together. Still, regular people have gotten a taste of both the distribution and manufacturing sides of financial mana.

2019 will re-combine these pieces to instantiate functional autonomous organizations that work in a constrained market environment and perform useful services. Unlike the failed experiments of the DAO or BitShares, these new DAOs will have a clear corporate form, a regulatory anchor, and will focus on delivering products and services to regular people, but scaled through machine strategy. The automation of company formation (Stripe Atlas) will combine with the outsourced human/machine assembly line (Invisible Tech) and distributed governance (Aragon) to create companies that scale frighteningly quickly.

Such creatures need a safe environment in which to operate, with a narrow set of functions and constraints. We see labor platforms like 99Designs or Upwork as useful sandoxes to test whether software-based organizations can compete in a human market. Such experiments will require a re-thinking of the tokenized approach, leveraging the micro-economic discoveries but avoiding the need for a poorly adopted crypto wallet or token. Designers will need to reduce friction, not just lump together coding ideas. But the timing and soil for this could be just right.