The millennial generation is experiencing history in the making as they flock in amazing numbers - almost 5,000 members on the DAO slack channel - to fund one of the most promising decentralized autonomous organizations.
Raising an incredible $130 million in just two weeks, with two more weeks to go, it makes the DAO the most well-crowdfunded project in history, and the most well-funded blockchain company.
Universal Sharing Network
Breaking all expectations, almost 11 million Ether has been sent to the DAO smart contract, creating some 1 billion DAO tokens, to fund the creation of a Universal Sharing Network.
This futuristic vision of machine-to-machine payments is aided by the funding of an Ethereum computer, similar to 21 inc's Bitcoin computer, and aims to create a sharing economy, an Uber of eBay.
Griff Green, a spokesman from Slockit, stated that he was “amazed” at the DAO raising more than $100 million in just two weeks and did not expect such a success, before adding, “the DAO is going to be able to do big things.”
His feelings are shared by many with Des Kenny, one of the many token holders, stating that the DAO raising more than $100 million was “incredible and very unexpected.”
Ethereum smart contracts
The DAO is one of the first decentralized organizations which implements the opportunities offered by Ethereum smart contracts to create a completely new, more transparent, and more accountable business model. To start, the funds are visible to everyone on DAO’s smart contract address which currently shows a holding of more than 10 million Ether. What is highly interesting is that it is the address itself, no individual, but that random collection of numbers and letters, which “physically” holds the funds, so no one can steal them or run away with the money, according to Mo Balaa, a Systems Engineer at Stanford University and DAO Community Member.
The address is controlled by smart contract code which determines how the funds are spent upon approval of a voting quorum. Once a proposal is approved, the funds are automatically transferred, with the first proposal likely from Slockit after the creation period ends in two weeks.
The proposal will likely set out the cost of funding the Ethereum computer, slocks, and the Universal Sharing Network. An estimate is not yet available, but it is probable that there will be plenty of funds to invest in other proposals.
One such proposal is from Ledger which wishes to create 6,000 Ethereum Ledger wallets at a cost of $140,000 with an estimated ROI of 25%. Many more are likely to follow.
Green emphasises that the DAO is an experiment, a very new invention, having never been tried before, and therefore, there is a considerable risk.
It is not yet clear whether DAO token holders would actively engage, make proposals and take part in the voting or whether the wisdom of the crowd is superior to expert decision making.
If the DAO works, it may open VC investment to ordinary men and women, injecting capital into the economy, democratizing finance and opening a new frontier of innovation.
Disclaimer: The author does not currently hold any DAO tokens. The above statements should in no way be taken as financial advice, and there is no guarantee as to their correctness with any verification only superficial. No guarantee whatever is made and readers are urged to carry out their own research and rely on any of the above statement at their sole risk and discretion.