But educational applications are merely the beginning: the recent development ofgamification applies the mechanisms of game design to enhance focus and motivation for nearlyany kind of activity (Deterding, Dixon, Khaled, & Nacke, 2011; Zichermann & Cunningham,2011). It is used in particular by businesses and organizations to goad people into performing tasksthat are useful for the organization—but not intrinsically rewarding for the individual. Examples areparticipating in surveys, filling in forms, or joining customer loyalty programs. While performingthese activities, respondents are given the kinds of points, “badges”, or bonuses that are used assymbolic rewards in games. This constant feedback motivates them to contribute additionally, so asto attain ever-higher total scores. Moreover, the more points they have gathered already, the lessthey are inclined to lose these points by prematurely stopping the activity—a psychological bias forcontinuity known as “sunk costs” (Garland & Newport, 1991).

To create DAOs resilient to corruption, DAOstack’s first governance templates implement voting rights using a system called Reputation. Reputation is a score assigned to each user that represents that user’s voter power. Each DAO has a separate ledger of Reputation scores, and so Reputation cannot be directly transferred from peer to peer. Rather, it is distributed through the passing of proposals inside the DAO.Indirect transfers of Reputation that cannot be completely prevented, such as a user transferring selling control of their account, are discouraged by a DAO’s ability to slash Reputation: if DAO voters find that an account has indirectly transferred its voting power, the DAO can pass a proposal to set that account’s Reputation score to zero.