The Tao of D.A.O

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An Introduction to the Meta-Fin thought Processes

Part One

I am Sarwar Uddin, founder of Meta-Fin.tech and pretty old for the crypto world. My background in Trad-Fi sub prime mortgages, law and property development has let me experience and see the best and worst of financial products, regulations and investors. I have to include a little bit of life story here in order to paint the background as to WHY we think the way we do and how we have come to the conclusions we have regarding DeFi and NFT marketplaces.

Here are a collection of articles and essays that will inform you as to why we have decided to seed our D.A.O the way we have and to explain why Trad-Fi’s rhetorical values can coincide harmoniously with the crypto-values and truly democratise banking and finance through self custody, self education and personal responsibility.

Before we continue, it’s important to address the almost daily rugs and failures in the Tomb Forks and the recent Luna/UST debacle which are indications that we as perhaps a species, are not evolved enough to act in the greater good.

The reality is that the unregulated public are greedy, and the predatory whales are ready to capitalise upon the greed, and that liquidity, without A single care for the end user.

Whilst I believe the LFG and Do Kwan are positive and rationale actors in the industry, it is becoming clearer that bad actors and if the rumours are true, professionals from Wall Street, are sharking over the system to create profits for themselves at the expensive of the ordinary investor.

In return what will happen?

The protectors of the establishment, (Yellen et al) will cry out for stable coin regulations, for 1:1 capitalisation, (thus shoring up the recently resurgent dollar) The DeFi Wizard himself has already said that regulations are going to be required in DeFI (Semi-DeFi in reality, if truly decentralised, good luck fining an Anon D.A.O.)

But what really was at fault here? Was it or is it, a general failing of crypto, or the outside intervention of profit seeking activities? Should regulation be aimed at the Crypto side, or the investors, and if so what could crypto do to protect its investors and ecosystems before such regulation comes to pass.

The short answer is that most DeFI projects, as I see from communities I have become part of whilst researching how to approach our project, are full of people who are significantly deficient in their knowledge of how the protocol works.

Most projects are lead by technological genii who are not the best at either finding good REAL world utility for their project or lack commercial awareness to maximise the project they designed.

As a result marketing sucks people in via Buying Business, (the ever succulent carrot of HIGH APYS) Gamification, Sunk Cost Manufacture, ever better ‘mousetraps’ and just plain lies.

The crypto investment community does itself a disservice every time it creates yet another tribal community, in the ever present pursuit of network effects, without creating genuine utility. Even the great Raol Pal (who I have an immense amount of respect for,) has distilled things down to the mantra of Metcalf's’ law.

Being Gen X and from a relatively ‘sturdy’ background, I recall when you had to make money, from doing something of value, for others. If you did this well, your clientele, customer base, hell even fan base grew. This gave you value. There is nothing wrong, with growing a following and delivering Value to that following.

The issue I have is far too many projects are growing communities and then falling short on the value delivery, and I cannot shake the feeling that it because the utility they offer is more often than not, a fugazi of smoke and mirrors, and moving liquidity around from A to B, the shell game of ‘tokenomic find the APY’.

Quite frankly seeing the huge potential liquidity and huge potential for paradigm shifting activity with the transparency of the blockchain and the decentralised nature of D.A.O. I see the entire current ponzinomical system as a frustrating waste of potential.

I mentioned that my back ground was in Sub Prime mortgages, yes that's right, 2008 Global Financial Crisis, I was a cog in that inexorable, ‘greed is good,’ wheel. After spending nearly 7 years of my life in that industry, and having dropped out of my Post Graduate Law to do so, I found myself out of work, overleveraged and unemployed, with far too expensive habits to maintain. A couple of failed tech start ups later, I was on the dole. I had reached a local bottom in the chart of my life.

Cutting a few years of story short, I went through the, ‘Welfare to Work’ system, was disgusted by the lack of ability, and the constant offering, of a 17 k a year warehouse or security job to me, (some decline, from the preceding six figures,) so I ended up joining the Welfare to Work groups as a skills trainer and Job Placement Advisor in an effort to change it from within. The Public Private partnership merry go round in the UK is not fun, and 18 months later, after being moved through three offices and having my cohort exceed the government recommended, 12 clients, to 142 clients; I snapped after being told to stop the benefits of a man, whose testicle had been sewn to his leg. Yes. That’s right. A real ball ache if ever there was.

‘Fuck the system and its unempathetic attitude to wards people with less.’ I had turned from a former ‘Young Conservative,’ ‘Tory Boy,’ ‘Banker Wanker,’ into a ‘woke’ hippy.

I became a Charity Fundraiser. Chugging (charity mugging,)on the phones at Listen which for 3 years was the most eye opening and rewarding (not financially) job I have ever had climbing to building a constantly team of the month winning team leader. (Goooo Ruby!) Every day we would change and save lives. 100’s of millions of pounds secured for good causes, like ‘The Anthony Nolan Trust’ Alzheimers UK, Scope, Barnado’s, the Red Cross, Oxfam, Unicef and many more.

Any way I digress, from there I ended up in Lombok Indonesia on ‘divorcemoon.’ Land is cheap and opportunity is high. I’ve watched a few groups of traditional finance chaps with passion for surfing, purchase amazing locations, and views for hundreds of thousands of dollars and turn them into multi million dollar projects offering luxury lifestyles for a fraction of the equivalent cost in Say Australia, Singapore, America or Europe. I fell in love with the place, the people, and after a two week reccy I was moved out and working in Property Sales.

This lead over 3 years and 2 crazy women, to my first crypto project. Remember when I mentioned I had a back ground in Sub prime mortgages? Well 2017 -2018 I had the idea to create a tokenised format for commercial lending that would allow for the dreaded C.D.O to be created without the need for a third party ratings agency and thus create a trustless, transparent mortgage bond product. I am not an Eth guy and did not trust DeFi at that point, and I had not even lost any money in it yet!

Long story short the risk profile of the asset bank created for that project was high, with a significant chunk being destroyed in Earthquakes that year. Luckily, nobody had invested yet, but the idea was done and is indicative of the desire to recover from the trauma of the GFC.

How do we create any sort of commercial lending which can be in the hands of people, so that hotels and villas are in the hands of a larger democratised group of people, instead of the 1% and their ilk? How can we create a bank our of the public? Well, banks already do this, but are stewarded by the profit minded board, for the benefit of shareholders not necessarily for depositors.

S.E. Asia certainly represents a cost of acquisition bonus in this direction to create a decent real estate portfolio.( However rules on capital adequacy of foreign investment vehicles do disincentivise foreign nationals from buying singular units, in Indonesia for e.g. minimum capital adequacy is 10 billion Indonesian rupiah within 60 days of company creation. roughly $780k USD.) These are originated in anti colonial agrarian laws, which are quite rightly put in place to protect a low cost of living country from becoming economically colonised.

So how to achieve a decentralised banking protocol that avoids the pitfalls of De-FI and does not become constrained by the issues bad actors dumping your token?

Over the coming days the articles I will issue here will outline our solutions to all of these issues and explain what you can do to become part of the solution to the DeFi economy, what we can do, and how we can achieve something of great value together.

Stay tuned, and please Follow us in Twitter, join us in Telegram and Discord to keep up to date with the progress we are making with our project, and prepare for your Tao of D.A.O role in the near future.