May 29, 2016
If you haven’t heard yet about the biggest crowdfunding project in the history, hurry up to get to knowDAO: Decentralized Autonomous Organization.
Slock.it, the company that merges blockchain and IoT, introduced a new method that for the first time allows the creation of organizations in which (1) participants maintain direct real-time control of contributed funds and (2) governance rules are formalized, automated and enforced using software.
Although the idea of the DAO is built on leveraging the benefits of crowdfunding, it is not another crowdfunding platform, it is an organization. Written with code in the cloud, the non-legal entity of individuals (which Tim Swanson, Director of Market Research at R3CEV, calls "design-by-giant-nerd-committee"), the .DAO does not create anything and does not employ anyone in a traditional sense.
The DAO is like a democratized version of a virtual hedge fund outside of the regulatory zone where membership means pooling personal funds (exchanged to ETH) to get DAO tokens and the right to participate in governing the investments.
The DAO is closed and self-governing—its software operates autonomously and its by-laws are immutably ‘carved’ into the Ethereum blockchain. The organization brings together groups of like-minded individuals with specific projects and goals in mind. Those individuals may ...