Nation3 partners with Aragon — the leading DAO platform with >5,000 DAOs and $6bn in AUM. The partnership includes funding and strategic alignment between the two DAOs — as well as cementing the ground for Nation3’s legal system to power DAOs built on Aragon.
Both communities approved a token swap to align both DAOs, with unanimous support.
Nation3 is building the internet’s legal system. Nation3 features its own constitution, court and checks and balances, allowing it to secure legal agreements on the internet.
The following use cases have been identified for a potential integration:
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Disputable voting: DAO token holders can deposit collateral and make a proposal to undergo a vote, but if such proposal contradicts the DAO’s charter, anyone can dispute it. This means only actions that align with the DAO’s charter can pass — closing off countless attack vectors for DAOs.
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Disputable streams: Enabling DAOs to enter an agreement with each guild, and then have their ops guild oversee their work and pause the stream if needed. Any of the parties can open a dispute if they feel the agreement has been breached. This is unprecedented. Right now the status quo gives almost unparalleled power to the DAO (if payments are after work is delivered) or to the recipient (if payments are upfront, before work is delivered). This obviously hurts trust, in turn hurting efficiency and stability. Nation3 provides credibly neutral streams in which every party is equal before the law, once and for all removing the cat and mouse game of payment flow.
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Trustless Aragon DAO: The current design of the Aragon DAO involves a trusted group of people that can veto changes over the Guardians, which are entrusted with the duty of ensuring that proposals adhere to the DAO’s charter. Unfortunately, this poses a centralization risk and a burden for the people in those positions. Using Nation3 would eliminate both. The DAO’s charter could define actions that are not possible, such as funding or undertaking any criminal activities, or paying out dividends. It would offer a higher level of legal certainty to all DAO participants.
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Eventual legal recognition for DAOs in traditional nation states: Nation3 is cloud-first, land-last. Nation3 is the first internet-native legal system powered by internet-native money (cryptocurrencies). Cryptoassets and DAOs are the default, and rulings over them are enforceable on-chain. Nation3 aims to kickstart economic development zones in different countries interconnected by such legal system, giving true legal personality to DAOs.
Aragon is excited about Nation3’s broader vision of a decentralized jurisdiction, and in particular the new court system it is working on. We acknowledge that Aragon does not need to build everything itself and delivering a new court as a dispute resolution mechanism is nowhere in its current roadmap. Thus partnering and supporting organisations to build these capabilities could have a huge substantive impact in super powering DAOs. We are very excited to see continued strategic and team alignment between our two organisations.
Anthony Leutenegger, Head of Growth at Aragon
This proposal helps Nation3’s legal system achieve product-market fit through streamlined distribution to the world’s top DAOs — which are powered by Aragon.
Luis Cuende, contributor at Nation3
We look forward to supercharging DAOs — which previously couldn’t make use of any legal system — with on-chain legally-binding agreements.