As we speculated last week, all Ethereum investors who were sitting on the fence jumped into the DAO crowd funding campaign just before the planned price change today. With over 10.3 million ETH, the DAO now holds one of eight of all Ethereum coins in circulation, each worth around 10 US dollars, for a total of around 105 million US dollars.
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13 days before the start, the DAO has already met the expected cryptocurrency worth 100 million US dollars. However, the rate of investment is expected to slow as the price of the tokens will change in just over an hour (currently 1 ETH is worth 100 DAO tokens).
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Stephan Tual, the founder of Slock.it, commented on the success of the crowdsale and predicted that within a few years the DAO will dominate not only Ethereum, but all blockchain innovations.
I see the DAO as an important factor for #Ethereum to completely take over the # blockchain ecosystem within a few years # ecosystem # startups
– Stephan Tual (@stephantual) May 14, 2016
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What is the DAO?
DAO stands for Decentralized Autonomous Organization Equivalent. It can be understood as a unit that only exists in the blockchain – just like a company only exists by law – only with programming code instead of a social contract. It is controlled directly by its owners without central management.
Slock.it created the DAO platform, but the investors who breathe life into it with their funds will keep control of their coffers, vote on their future promotions, and be rewarded with their earnings. It is considered to be the first serious application on the Ethereum blockchain on the way to fulfilling the vision of the “planetary computer” that can handle everything from secure communication to digital governance and much more.
The signatories of the curator of the DAO 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 eventually be used as the for-profit “Ethereum Foundation 2.0” to support the development of the Ethereum protocol itself.
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 like electric vehicle designers Mobotiq, who have already unveiled their DAO (Ethereum Integration to Enable Fully Autonomous, Self-Renting Vehicles) proposal, plan to tap into this new source of venture capital.