Autonomous corporation “The DAO” has become the biggest crowdfunded project
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Re: Autonomous corporation “The DAO” has become the biggest crowdfunded project
#2Self driving company
Re: Autonomous corporation “The DAO” has become the biggest crowdfunded project
#3This could be interesting. What does this mean for hostile take overs though?
Re: Autonomous corporation “The DAO” has become the biggest crowdfunded project
#4This could be interesting. What does this mean for hostile take overs though?
I think you're asking "what happens when someone captures 51% of the voting shares?" - This is actually the #1 problem with these types of systems, since the majority could just vote to put 100% of the funds into their own bank account.
The slockit-authored DAO in the article addresses this through two failsafes:
1. Shareholders can vote to split the company in two at any point to extricate their funds from majority control.
2. There is an extra layer of "curators" (kind of a misnomer) who are trusted members in the community who make sure payments aren't being funneled through an intermediary to a majority shareholder.
Whether these safeguards will work remains to be seen.
Re: Autonomous corporation “The DAO” has become the biggest crowdfunded project
#5[deleted]
Re: Autonomous corporation “The DAO” has become the biggest crowdfunded project
#6the article doesn't actually explain the "autonomous" bit imo.
This looks rather more like a distributed decision making platform. Say, liquid democracy + ethereum, rather than Accelerando-style "sentient alien corporations".
Noticeably, the DAO does not seem to be able to make any decision, it does things through proposals suggested by people which are voted on.
Still cool anyway.
Re: Autonomous corporation “The DAO” has become the biggest crowdfunded project
#7TLDR; A computer program living on the ethereum blockchain is currently in control of 107+ million dollars, making it the second largest crowdfunded project in history. Shareholders vote on proposals to give money to other entities (probably also programs on the ethereum blockchain) that they hope will make money and send it to the parent contract.
All votes are managed by a program written in EVM code, which runs on a sort of "virtual computer" that is designed to be (in theory) 100% secure, 100% reliable, and 100% incontrovertible. No middlemen have any control over this program, it essentially completely outside of any human control (beyond the voting rules encoded within it.)
UPDATE: Apparently this morning it passed $120 million and is now the largest crowdfunded project in history.
Re: Autonomous corporation “The DAO” has become the biggest crowdfunded project
#8This could be interesting. What does this mean for hostile take overs though?
I'm not 100% familiar with it yet, but there is some code where anyone on the losing side of a majority vote can opt to fork the DAO and retain their original tokens with all investments, instead of going along with the group (similar idea to a Bitcoin hard fork). This prevents someone with 51% ownership voting to send 100% of the assets to themselves.
Re: Autonomous corporation “The DAO” has become the biggest crowdfunded project
#9> Currently only the privileged can found and fund new companies.
What? It's about $200 in Seattle to file to register a Limited Liability Company. It's a stretch to call that 'only the privileged'.
Re: Autonomous corporation “The DAO” has become the biggest crowdfunded project
#10[deleted]