How The DAO - or the the first Decentralized Autonomous Organization - performs on the Ethereum blockchain after its launch today will go a long way to affect other aspects of the digital currency world.
The DAO allows anyone to create their own autonomous organizations on the Ethereum blockchain.
It is a for-profit DAO that “will diligently use the ETH under its control to create value and provide benefits to its members while collaborating and improving the decentralised ecosystem as a whole.” Its trading launch is expected to occur at approximately 12 pm today, May 28th, a few hours after the DAO tokens become transferable.
According to Kraken, clients can deposit their DAO tokens at launch and start trading by navigating in their account to Funding > Deposit > DAO and creating a DAO deposit address.
Drop in Ether price
However, there have been talks of a likely drop in the price of Ether after the launch considering that the DAO is funded entirely with Ether. According to figures from US-based digital currency exchange Poloniex, the price of ether – the digital currency used by the Ethereum platform – surged by upwards of 50% in the seven days through May 20th.
Joseph Lee, who runs London-based bitcoin trading platform Magnr, says:
“As soon as people are able to transfer out of DAO tokens, the Ether price will drop temporarily. People would want to cash out. The price has been rising rapidly.”
The DAO first of all DAOs
The DAO launch is also going to be a test drive for others to follow suite. In response to a question at one of the Lisk community meetings, Lisk co-founder, Max Kordek, stated that "In the future there will be something like a DAO very likely" for the Lisk platform.
To expatiate on this comment, he says to CoinTelegraph:
“There will be a DAO for Lisk. Definitely! However, this is not a topic for the next weeks or even months. It will happen at a later stage, once the whole platform matured. We first want to see how "The DAO" is working out. Take things which worked and make those who didn't better. I think it would be a big opportunity for Lisk and the "decentralized" development of blockchain applications.”
While there is hope for a success, The DAO is considered to be just one of many DAOs. Lessons learned from it will be applied to future iterations.
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