DAO Just Made History
While a huge segment of the planet is still struggling to grasp the various concepts revolving around the rapidly emerging cryptocurrency industry, those that do grasp said concepts are going on a wild shopping frenzy over the currencies.
Case in point, Decentralized Autonomous Organization (DAO) recently launched a crowdsale for DAO tokens and nabbed over a hundred million dollars within a few weeks, making them the largest crowdfunded project in history.
How DAO Works
DAO, a platform developed by German company Slock.it, is a self-governing company built upon an irrefutable mathematical code that is free for everyone to use. It’s main mission is “to blaze a new path in business organization for the betterment of its members, existing simultaneously nowhere and everywhere and operating solely with the steadfast iron will of unstoppable code.”
It runs on the platform Ethereum, which in turn runs on a blockchain, essentially resulting in a system which allows fast and direct trade, and records all transactions for everyone to see in absolute transparency. People can make transactions without any intermediary, and will enable several capabilities not limited to trade. Ethereum uses Ether, the regulated “crypto-fuel” that powers the creation of DAO’s within the system, which the public can buy to exchange for DAO tokens.
Security is assured because it is constantly monitored by an entire network of people who have a stake in the system, making corruption an impossibility. According to their website: “Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.”
Notably, this means that DAO needs no CEO, no employees, and no office, as it is monitored and operated by its stockholders—the community of token owners, using an autonomous system that may be easily accessed by anyone with a computer and internet connection. Essentially, it is a company encoded with automated decision-making, eliminating the need for offices, and practically eradicating corruption and human error.
As of last look, DAO has acquired 10.85 million ETH, equivalent to more than $131 million, and they still have ten more days left of their crowd sale. This means they are holding around one-eighth of the total amount of ETH in the whole market.
The sale of DAO tokens started April 28 and will last until May 28, with the selling price scheduled to increase at a steady rate.