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Ethereum’s The DAO Easily Exceeds Crowdfunding Expectations

Ethereum’s The DAO Easily Exceeds Crowdfunding Expectations

Ethereum’s The DAO Easily Exceeds Crowdfunding Expectations

Earlier this month, BitConnect told you about  The DAO concept, being developed by the masterminds behind Ethereum, Mist, and other startups. The decentralized autonomous organization or The DAO is a new form of investment vehicle that will work without a Board of Directors but work more directly for shareholders or The DOA owners. Rumors of an initial funding round of $100M worth of Ether were mentioned as initial targets, but The DAO, the first of its kind, has already exceeded all expectations.

Who couldn’t use $120M?

Ethereum’s The DAOThe DAO, an innovative form of investor-directed venture capital fund, has already collected almost 11 million Ether, or over $120M in value, as of Monday, easily passing its $100M initial funding estimates. This is with plenty of time left in this funding round, which is scheduled to end on May 28th. Now, investors just have to decide what to do withy all of this decentralized digital currency.

“There are no humans controlling The DAO, it’s just the code,” said Simon Jentzsch, a German software developer who was one of the people behind The DAO. His brother Christoph, actually wrote The DAO’s code. “There is no one who will take money for favoring one or other contract. You will have the wisdom of the crowds. We didn’t want to be the ones who started or controlled this, we didn’t want to do it for ourselves.”

The organization is governed by a set of so-called smart contracts which run on Ethereum's blockchain, a public ledger designed to make its operations transparent and enforceable. The only human involvement comes from a group of volunteers called “curators” who check the identity of people submitting proposals and make sure the projects are legal before “whitelisting” them. The organization’s investors then vote on which ones to give money to.

Slock.it, a blockchain technology company where the Jentzsch brothers hold senior positions, was one of only two organizations to pitch for financial backing from The DAO, the other being French EV vehicle startup Mobitiq. Jentzsch said they plan to use the money to build a “universal sharing network….where you can share whatever things you have, [like] cars or houses”.

Asked how the autonomous organization could ensure it was not being used for money-laundering by its anonymous investors, Mr. Jentzsch said terms had been established in Switzerland to facilitate The DAO’s investments in other companies. Swiss law makes it possible to “take money from an unknown source as long as you know where it’s going”.

Author : Evander Smart

Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

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