For nineteen days to go, the DAO has just made crypto history and has become the second-highest-funded crowdfunding project of all time. At the time of writing, more than 2.78 million ethers have been raised for the DAO, which is over $ 25.7 million at the current price of $ 9.26 per ether. This also means that the DAO now controls over 42% of all ethers in all Ethereum contracts combined.
Until the start of the DAO, Ethereum was the only blockchain project in the top ten list of the most highly funded crowdfunding projects with USD 18.4 million (and with “Ethereum Alternative” Lisk in 20th place with USD 6 million) . The second highest funded crowdfunding project to date has been Elio Motors with USD 25.6.
The new world of e-commerce, fintech and marketing – Register now for the Finance Magnates Tel Aviv conference on June 29, 2016.
Take part in iFX EXPO Asia and discover your gateway to the Asian markets
The DAO is of course expected to raise more funds until its sale is complete, but the rate is slowing considering it raised $ 12 million in the first two days and roughly the same for the remainder of the week Amount. However, in five days the price of a DAO token will go up, and this could lead to a new rush of investors who have previously stayed on the fence but want to get in before a change in the interest rate.
Stephan Tual, the founder of Slock.it, commented on the impact on the apparent success of the crowd sales as follows: “The cat is out of the bag: A demonstrably fair, 100% decentralized governance model is now publicly available for everyone to copy, improve and reproduce … While I am sure many will continue to try to deceive their users by imposing artificial centralization rules on “pseudo-DAOs”, the DAO has made the public aware of the importance of reviewing the source code and validating the bytecode from cleared up such projects. “
Crypto Payment Processing Reinvented With B2BinPay v2.0 Platform Upgrade Go to Article >>
He added, “It’s official: ‘Coins’ for ‘Coins’, ‘ICOs’ and strange ‘altcoins’ are now dead, buried and cremated. DAO tokens, on the other hand, have intrinsic value in the form of rewards generated by the products and services that the DAO supports. “
What is the DAO?
DAO stands for the equivalent of the decentralized autonomous organization. It can be understood as a unit that only exists in the blockchain – just like a company only exists legally – only with program code instead of statutes. It is controlled directly by its owners without central administration.
Slock.it created the DAO platform, but the investors who breathe life into it with their funds keep control of their coffers, vote on their future actions and are rewarded with their earnings. It is believed to be the first serious application on the Ethereum blockchain towards fulfilling the vision of the “planet-scale computer” capable of handling everything from secure communications to digital governance and much more.
The DAO’s curator-signers include Vitalik Buterin, the inventor of Ethereum, Gavin Wood, the co-founder of Ethereum, Christian Reitwießner, who implemented Solidity, the intelligent contract language of Ethereum, and others.
While its owners can vote to invest in whatever they want, the idea seems to be that the DAO will serve as a mutual fund for early-stage Ethereum companies. The hope of its creators is that the DAO will be used to support the development of the Ethereum protocol itself as the for-profit “Ethereum Foundation 2.0”.
Slock.it has already submitted its proposal to the DAO to create the Universal Sharing Framework and the Ethereum computer. It is also believed that more startups, such as electric vehicle designers Mobotiq, who have already released their DAO (Ethereum Integration to Enable Fully Autonomous, Self-Renting Vehicles) proposal, plan to tap into this new source of venture funds.