Networks are interconnected systems of agents, resources, and relationships that enable coordination, collaboration, and value exchange without requiring centralized control, creating adaptive structures capable of scaling both efficiency and innovation simultaneously.
Networks represent a fundamental organizational paradigm distinct from hierarchical, entity-based structures. They consist of nodes (individuals, teams, organizations) connected through relationships, protocols, and shared agreements that facilitate the flow of information, resources, and decision-making across the system. Unlike traditional organizational models that centralize control and coordination, networks distribute agency and authority across participants while maintaining coherence through shared purpose and protocols.
In the context of decentralized systems, networks provide the underlying infrastructure for emergent collective intelligence. When properly designed, they can achieve both the efficiency benefits of scale (through fractal scaling hierarchies) and the innovation benefits of diverse collaboration (through social connectivity). This dual capacity allows networks to evolve organically in response to changing conditions, directing resources toward the most promising opportunities without requiring top-down direction or rigid structures.
Uses of “Networks”
Networks in DAO Ecosystems
In the DAO context, networks represent a fundamental shift in how we conceptualize organizations. Rather than viewing DAOs as discrete entities similar to companies, they can be understood as “centerless networks with coordinated flows of resources” that enable more dynamic, adaptive coordination. As described in DAOs aren’t things… they are flows, DAOs function as “network economies” rather than traditional business models.
These DAO networks consist of interconnected cells (small autonomous teams) that self-organize around shared purpose while maintaining their independence. The network provides infrastructure for these cells to discover each other, share resources, and align activities through transparent protocols rather than management hierarchies. This fractal structure allows DAOs to scale both operational efficiency and creative innovation simultaneously.
Networks as Scaling Systems
Networks enable distinctive scaling properties that differ significantly from traditional organizational models. As explored in Scale and the levers that provide DAOs their power, networks can exhibit both:
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Sub-linear scaling through fractal hierarchies that create increasing efficiency as the network grows (similar to biological systems and infrastructure networks)
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Super-linear scaling through social connectivity that generates increasing innovation, creativity, and adaptation as the network expands (similar to cities and other social systems)
This dual scaling capacity allows networks to become more efficient while simultaneously becoming more innovative and adaptive - a combination that traditional hierarchical organizations struggle to achieve. As Building DAOs as scalable networks describes, this enables DAOs to “leverage both Dynamic-One and Dynamic-Two” scaling systems simultaneously.
Networks as Coordination Mechanisms
Networks function as coordination mechanisms that align autonomous actions without requiring centralized control. Through transparent state documentation, shared agreements, and real-time information flows, networks enable participants to make contextually appropriate decisions while maintaining overall coherence.
The concept of Minimum Viable Permissionless-ness illustrates how networks coordinate through access rights rather than management hierarchies. By enabling permissionless access to work, collaboration, and proposal mechanisms, networks create the conditions for distributed decision-making where “strategy emerges autonomously” from the collective intelligence of participants rather than being dictated from the top.
Networks in Social Impact
In social impact contexts, networks enable more distributed, contextually-responsive approaches to complex challenges. Rather than centralizing resources and decision-making in large institutions, network approaches distribute agency to those closest to problems while providing infrastructure for knowledge sharing, resource allocation, and collective action.
The cosmolocalism framework demonstrates how networks can balance local autonomy with global connectivity, following the principle that “what is heavy is local, what is light is global.” This approach enables communities to maintain sovereignty while benefiting from broader network resources and knowledge commons.
Related Concepts
- Systems: Networks are composed of interconnected systems that work together through coordinated processes
- Agents: The autonomous individuals or entities that form the nodes of networks
- Flows: The movement of resources, information, and value through networks
- Governance: The frameworks and processes for collective decision-making in networks
- Primitives: Network structures can be built from foundational building blocks
- Cells: Autonomous teams that form the nodes of DAO networks
- Coordination: The processes through which network participants align their actions
- Community: The social fabric that enables trust and collaboration in networks
References and Resources
- DAOs aren’t things… they are flows
- Scale and the levers that provide DAOs their power
- Building DAOs as scalable networks
- Minimum Viable Permissionless-ness