"Fractally" is the company behind a blockchain governance model proposed by Dan Larimer, a well-known figure in the blockchain and cryptocurrency industry. Dan Larimer is recognized for his work on several high-profile projects, including BitShares, Steem, and EOS. The Fractally model represents his latest endeavor in the quest to solve common governance challenges faced by decentralized networks and organizations.
The core idea behind Fractally is to improve upon existing decentralized autonomous organization (DAO) structures by introducing a more scalable and democratic governance mechanism. This model emphasizes group consensus among smaller teams or "fractals," rather than relying solely on the broader community's direct vote for every decision. Here's a simplified overview of how it works:
- Hierarchy of Groups: The community is divided into smaller groups (fractals), where each group reaches a consensus on various matters. These groups can then interact with each other in a hierarchical manner to form broader consensus and governance structures.
- Consensus Mechanism: Within each fractal, members rank each other based on their contributions to the group's goals. This ranking system is designed to incentivize constructive participation and reward members who contribute the most value to the community.
- Scalability and Efficiency: By decentralizing the decision-making process into smaller, manageable groups, the Fractally governance model aims to be more scalable and efficient than traditional DAOs, which can suffer from slow decision-making and voter apathy.
- Tokenomics: The Fractally model also incorporates novel tokenomics, where tokens are distributed based on the value members bring to their fractals, as recognized by their peers. This approach is intended to ensure fairer and more meritocratic distribution of tokens and governance rights.
The Fractally governance model is proposed as a solution to the inefficiencies and scalability issues of earlier DAOs and blockchain governance models. By fostering more localized consensus and rewarding active, valuable participation, Fractally aims to create more cohesive and effective decentralized communities. However, like all innovative governance models, its real-world application and effectiveness will depend on various factors, including adoption by communities, adaptability of the model, and the ongoing development and refinement of its mechanisms.