31–40 of 85 posts
The general consensus among the developers was that the DAO isn't ready for a real business, and any business owner intending to use the DAO would face real potential risks for loss of funds or worse.
Still, it's a really interesting idea. Wish it was ready for prime-time.
What advantages does the DAO offer over a regular fund for investors? It looks like you get less regulartion and legal weight if things go wrong...am I missing something?
If you understand how Wall St. works then the question becomes 'why does anyone use regular funds'.
I spent a few days in the DAO chat room discussing a potential proposal. The general consensus among the developers was that the DAO isn't ready for a real business, and any business owner intending to use the DAO would face real potential risks for loss of funds or worse. Still, it's a really interesting idea. Wish it was ready for prime-time.
I read the article as saying "passive investors might get screwed". So this discussion should be healthy for the DAO if it gets these passive folks to become more active. Creating the future will require some work.
Earlier quoted context omitted.
In a way, this is like Uber or Airbnb, you can't ask permission or you'd be out of business before you managed to change the laws. Asking forgiveness is not only easier than asking permission, sometimes it's the only viable route. They may lose money, they may make some. But it's a grand experiment of a kind that's never been tried before and I'm curious to see the results.
> you can't ask permission or you'd be out of business before you managed to change the laws. That strategy didn't work out too well for Zenefits.
Discussion around the issues outlined in the report have already begun (before the report was published) in the DAO forums. It's not unexpected that there will be problems. This has never been done before. But the fact that this report exists, the problems are being discussed, and there are already talks of proposals for resolving some of the issues is a good sign that the DAO is working as intended... The community…
The "investors" risk losing all their money, and the curators and contractors risk going to prison because they are conducting an illegal securities offering with no valid exemption.
What advantages does the DAO offer over a regular fund for investors? It looks like you get less regulartion and legal weight if things go wrong...am I missing something?
Its transparent and everyone can vote. So its like being able to read over all contracts and investment strategies that a fund manager is considering ahead of time and voting whether you want to be part of it. Then you can see every single transaction the 'fund manager' makes. If you understand how Wall St. works then the question becomes 'why does anyone use regular funds'.
Put another way, the stock market rewards passive investors with exactly the same rewards as active investors (which has its own problems - shareholder control over management is notoriously lax), but the DAO goes to the opposite extreme.
I personally think that calling for a moratorium is presumptuous - I'm certainly glad there was no moratorium of the stock market when it was introduced because some economists identified some real flaws. But it is a well researched critique.
Earlier quoted context omitted.
It removes all autonomy from the voter being able to express their true preferences as the author has subjugated them to profit.
You are missing the point - whether their motivation is purely profit, or altruistic, or whatever - if they do not want to fund a project, they have an incentive not to vote 'No' against it because as soon as they do they can no longer remove their money from the DAO, and have committed to funding the project if it passes.
The author conflates an (presumably autonomous) individual's true preference with necessarily increasing the net worth of the DAO. There is no a priori reason to believe that.
Edit: you could, like, you know, post a reason to believe the equivalency.
Transcript: http://pastebin.com/raw/ATJSADgr
One could argue that the thread consists of nothing but trolling, and that no one could possibly be so stupid as to invest their entire life savings, take out loans, and attempt to use credit cards to buy coins. Unfortunately, I've seen it happen.
The conversations on that thread are almost exactly the same as they were several years ago. "Hold. Things will get better, you simply must hold." "But I lost half my life savings..."