The DAO Raises $30 Million USD After 10 Days

The DAO Creation Phase

Just 10 days into its creation phase, The DAO has already raised the USD equivalent of $32 million in Ether, resulting in the creation of over 343  million tokens. With 4 more days to go before the first “price hike” occurs it is likely that this number will rapidly grow as early investors seek to get in at the lowest possible cost.

For those late to the game, there will be an additional 14 day period with steadily increasing prices before the DAO creation period is closed and no more tokens can be purchased. Tokens are currently available at the rate of 100 tokens per 1 ETH, and will eventually rise 50% to a rate of 100 tokens per 1.5 ETH. The last day to participate in the DAO creation and buy tokens is May 28, 2016.

If you are interested in Buying tokens, you can check out our guide on buying DAO tokens with the Ethereum Mist wallet or you can launch the DAO Hub Wizard for information on other purchasing options.

The DAO already has the distinction of being in 2nd place on Wikipedia’s List of highest funded crowdfunding projects, already surpassing that of Ethereum itself which now sits at the number 6 spot on the list. The DAO still has a long ways to go before having a chance at unseating the #1 spot, Star Citizen, with its record $111 million raised, but to be fair the DAO has only been available for funding for 10 days while Star Citizen as been raising money for years.

 

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The DAO  or Decentralized Autonomous Organization is first of its kind to offer a new way to provide financing to companies and operates on the Ethereum Computer network. The DAO will utilize smart contracts on the Ethereum blockchain so that anyone, anywhere in the world can be empowered to participate.

The DAO will consist of three main components. The DAO token holders who will control decisions by voting on proposals as well have the ability to vote on (or out) curators. The curators are a group of people who will administer the code and help protect the DAO against bad actors. The contractors are the ones who will submit proposals to request funding and will do the actual work for the DAO and potentially bring in revenue.

Early contractors are expected to include Slock.it and Mobotiq. As time goes on additional proposals and contractors are expected to work with the DAO.

 

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The DAO Current Proposals

Slock.it UG has submitted its first proposal to The DAO titled “For a Universal Sharing Network, the Ethereum Computer Reference Design and its Ecosystem of Applications”. As suggested by the title, at the core of this proposal is the Ethereum Computer, a multi-functional device designed to decentralize the Sharing Economy. Slock.it has long been associated with the DAO and expected to be an early contractor, thus why it is sometimes nicknamed the Slock.it DAO for this reason.

Stephan Tual, founder of Slock.it and former CCO of Ethereum, wrote in a Slock.it blog update :

“The Ethereum Computer and its app/dapps ecosystem forming a Universal Sharing Network is an ambitious project, on a scale which goes far beyond what could be achieved with a few hundred thousand dollars worth of seed money. The Ethereum Computer is a moonshot: a project that, if successful, will redefine how we think about blockchains not just in our niche of cryptography but in the mainstream media.”

The DAO relies on a group of curators, which nominated and voted on by The DAO token holders. This human presence helps ensure that malicious actors are prevented from executing 51% attack, as well as other events that is hard to program into code. The check on the curators power lies within the fact that the token holders can vote to remove a curator at any time. Part of the curators duties include curating a list of contractors authorized to receive ether from The DAO.

The current curators include Ethereum founder, Vitalik Buterin; Alex Van de Sande, lead designer of Mist wallet; Dr Gavin Wood, founder Ethcore; Christian Reitwießner, Solidity and C++ team lead; Viktor Tron, core developer of the Go Client; Aeron Buchanan, head of R&D, Ethcore; Taylor Gerring, director of Technology, Ethereum; Martin Becze, JS client developer, Ethereum; Gustav Simmonson, core developer, Ethereum; Vlad Zamfir, proof of stake lead developer, Ethereum; and Fabian Vogelsteller, Lead Dapp developer, Mist wallet.

In addition to Slock.it, Mobotiq is also expected to submit a proposal to the DAO soon. Mobotiq’s proposal will focus on designing and building modular Electric Vehicles that can be rented out via a peer-to-peer application. Integration with Ethereum could enable the development of fully autonomous, self-renting vehicles.

 

Mobotiq’s vision of modular Electric Vehicles, via DOAHub.org
Mobotiq’s  Electric Vehicle Prototype, via DOAHub.org

Many more proposals are expected in the days following the DAO’s creation period, in which all token holders will have a chance to review and vote on each proposal according to its merits.

2 Comments

  1. Why would people not vote for stupid shitprojects so that everyone loses their money? How could a average person evaluate investment in complex technology?

    • Your vote power will correspond to how many DAO tokens you have, so it is assumed those DAO holders with large stakes at risk would naturally vote for only those proposals beneficial to their interests, which would be preserving and growing their investment.

      Also, another key aspect is that you do not need to go along with the crowd if you do not like the proposals. If your vote is no you can choose to not have your tokens used in the proposals.

      More details will be released on the exact procedure to cast or abstain from voting once the creation phase has been completed and the final proposals start coming in. The Slock.it and Mobotiq will not be the only two proposals the DAO will consider, it is just they were the first to jump on-board and get in front of the process.

      There will likely be many more contractors coming up with proposals in the next months, so even if you do not want to vote or use your tokens to help fund these initial offerings, there may be something more to your liking at a later point in time. There is also the option of withdrawing your ETH if you decided not to vote for any proposals, again with exact details to do this forthcoming.

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