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Introduction

What is coordination-stack?

Coordination-stack is a tool kit that enables any entity to spin up an organization that doesn't depend on a traditional legal document to enable coordination between two or more entities.

Why do we need coordination-stack?

In the traditional world, humans rely on legal documents to trust each other to create non-zero-sum games.

Why do we need legal documents, and what are their limitations?

• We rely on employment agreements to ensure employers and employees can trust each other to follow certain rules and work towards a common goal.
• Founders and Investors rely on SHAs(shareholding agreements) to trust each other to follow ethical practices and produce great outcomes for each other.

While these legal documents enable trust between two entities to coordinate, they are extremely costly in time and money. This cost makes traditional legal documents inflexible and fails to align incentives between individual entities to the edges.

Here are a few examples of how unconsciously traditional legal documents limit coordination.

Startup Cofounders

Most Startup people might argue that having more than four cofounders is not ideal. Having ten cofounders in an early-stage project is almost impossible to imagine. But why can't a startup have ten people as cofounders contributing with different capacities and aligning incentives and decision-making power accordingly?

Is it because decision-making becomes complicated and slows if there are ten cofounders? What if those ten people have varying voting power based on their contributions? Then, the #1 contributing founder can have ten voting powers vs. the #10th contributing founder. The point is if we could enable governance power and financial incentives to be modular, we can design different incentive alignments based on someone's efforts and impact.

These conditions are much easier to put into code as part of a smart contract on a permissionless blockchain than creating different legal contracts to accommodate those ten founders to help the same cause, even when each single could add a non-zero-sum value to the organization.

Employees incentive misalignment