A decentralized autonomous organization (DAO), sometimes labeled a decentralized autonomous corporation (DAC), is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. A DAO's financial transaction record and program rules are maintained on a blockchain.:229 The precise legal status of this type of business organization is unclear. https://en.wikipedia.org/wiki/Decentralized_autonomous_organization A well-known example, intended for venture capital funding, was The DAO, which launched with $150 million in crowdfunding in June 2016, and was immediately hacked and drained of US$50 million in cryptocurrency. This hack was reversed in the following weeks, and the money restored, via a hard fork of the Ethereum blockchain. This bailout was made possible by the Ethereum miners and clients switching to the new fork.
Oct01'2021, Venkatesh Rao tweeted I read this thread of “open problems with DAOs” and went, “errr these are the same problems we have with our non-DAO community, so if they’re open problems for you too why would I add the headache of a volatile speculation-attracting token to our list of existing headaches?
- Nov23: I’ve changed my mind. The problems are the same, the tech introduces genuinely new was to attack them. They’ll have different failure modes and effectiveness levels.
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