With the DAO RageQuit function, we are now able to trust strangers with our funds more so than ever before. Pseudonymous and potentially anonymous individuals in an online community can now use DAOs to safely work with each other without the risk of governance capture and counterparty risk (as they are now able to leave DAOs permissionlessly with their rightful economic stake in the DAO). Typically with traditional legacy organizations that manage funds using a bank account, the RageQuit process would be a slow permissioned and manual process that relies on a central admin to process — an extraordinary effort compared to simply calling a DAO’s RageQuit function smart contract.

RageQuit is important because it lowers the risk involved to participate in group coordination and widens the scope of individuals that might be willing to part take in funding a project in a community environment. We’ll likely see it enabling a whole new range of new possible coordination opportunities to emerge as a result.

With the frictionless ability to not only form organizations but to also leave them, we’ll likely see larger-scale organizations form, scale-up and dissolve at a pace that we have ever seen before. Underpinned with the RageQuit ability to leave an organization at any time, these groups will be forced to create net positive-sum outcomes for all or most participants or result in a mass exodus of RageQuits. Cryptonative, remote-first coordination will prove to be the path of least resistance for global community-driven projects and initiatives. Through DAOs, we’ll be able to work with more people around the world on a larger scale than ever.