Recently there has been a lot of misunderstandings about how the DAO token sale works and how it will generate revenue for the shareholders, more doubts exist about how the DAO works with Slock.it.
In a previous article, my colleague JP Buntinx explained the concepts and ideas behind the DAO, but it seems that some confusion still exists about how the DAO works with Slock.it UG (the company behind the Ethereum Computer Project and the smart-locks).
DAOs are basically smart contracts (computer programs) living in the blockchain, their behavior and ultimate goals are defined by its creators, the first DAO to be brought to life and released to the public is The DAO.
The DAO will be the link between Slock.it and the investors, in our previous article, we explained that the DAO’s function is to collect money from the investors, issuing Tokens based on the amount sent to the contract (in this case 100 tokens per ETH), the tokens represents the amount of shares a user has in the contract, the DAO will invest this money to generate revenue to its shareholders, all token holders can issue proposals to the DAO, these proposals will then be submitted to vote.
A number of curators have taken the responsibility to come up with a proposal that allows Slock.it to work for The DAO as a service provider, Slock.it will use the money provided by the DAO to design, build and commercialize the first Ethereum Computer, it will be a small electronic device that will run a full Ethereum node, it will also be equipped with the tools to run Ðapps and other programs.
Slock.it summarizes its plans as Blockchain + IoT for a new sharing economy. They will be the main service provider for The DAO, it is expected that, in the future, Slock.it will submit more proposals to The DAO for review, depending on the results and revenues generated by the commercialization of the Ethereum’s Computer, the token holders may decide to continue using Slock.it services.
The DAO can, at any time, stop using a determined service provider and switch to another one, the user will be the ones to decide what they want to do, it is also possible to dissolve the DAO and refund the shareholders. You can review the entire Slock.it proposal here, it contains the details about how Slock.it will work towards the creation of the Ethereum computer and how it will reward The DAO’s token holders.
Decentralized Autonomous Organizations have the potential to become the framework that investors will use to support an idea or business plan, it is in the best interest of all cryptocurrency lovers that DAOs become successful.
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And how do I make money with this? Still unclear to me
If you were an investor in Slock.it your shares would hopefully appreciate in value if Slock.it’s sales create revenue for the DAO.
So you are pretty much betting on the product, in this case a smart lock but instead of using traditional investment methods which are slow and complicated you can use blockchain technology which is quick and efficient.
but it’s unclear whether slockit will be voted by The DAO holders. it’s not an example
Lol. So basically this entire thing hinges on the success of the SlockIt team. Yeah, I’m very skeptical.
Perhaps we will see other, more compelling proposals that include estimated budgets, cash flow, p/l, etc. The slockit proposal, in its present form, should serve as a warning. This team hasn’t been able to develop a compelling business model. The money invested will be wasted on a 2 YEAR hardware development project. If there is a development timeline, that ought to be in the proposal. And all this is overshadowed by bitcoin21.
I suspect other, more reasonable, proposals will be submitted. We’ll discover if the voting majority of dao token holders are the slockit and ethereum teams.
Would you be less skeptical if the proposal was directed to software dev, and the ask was significantly less than the funding required to develop, produce, and distribute hardware? The DAO (participants) must show that a DAorganigation provides advantages that leads to greater success, on average, than that achieved by C corps, or LLCs. As such, the first project has to be successful. It should not be a moonshot type effort that indicates a conflict of interest. Would like a reply from someone in the know. Thanks.
You make money with this by submitting a proposal describing how you will add value to the DAO, and receiving an amount of equity, or a suitable equity proxy (dao tokens) that reflects the proportional value you add in view of the total value of the dao. I am actively looking for a tech star (software, crypto), and a marketing/comm star, to join forces with me (ip atty, experienced general counsel and CEO) to bootstrap a dao based upon this idea. Interested please contact me kenprivate@gmail.com