In an extensive blog post, Jack du Rose, Founder of Colony, announced the creation of the non-profit Colony Foundation, which will develop the open source Colony smart contract network on Ethereum.

Colony is a startup using Ethereum’s Blockchain to make it easy for people all over the world to build companies online, the concept centers around the idea of a True DAO

, Jack du Rose explains:

If “The DAO” is a decentralised investment fund, a ‘True DAO’ is a decentralised company (or non-profit). It solves the problems of effective coordination, cognition, and collaboration which has traditionally been solved by ‘the firm’.

The company has the potential to build a platform that will enable people all around the world to build companies over the internet without having to know or trust each other. Colonies are decentralized companies, every ten minutes, they release nectar a token used to reward workers for completing tasks, the system incorporates meritocracy and reputation as a key component.

True DAO must have a robust reputation mechanism for accurately and trustlessly identifying competence and trustworthiness by systematic and objective assessment of behaviour.

Jack du Rose explains that a True DAO

isn’t suitable for all cases, and that’s why Colony will support all kinds of Internet Organizations, each with their own trust or privacy requirements. Rose justified the creation of this non-profit organization with the high failure rates of startups.

We’re excited to announce the Colony Foundation, a non-profit foundation responsible for developing the open source Colony smart contract network on Ethereum. We see the Colony Network as infrastructure for internet organisations and part of the remit of the foundation will be supporting the development of applications on top of the protocol.

Colony will build applications on top of this foundation layer, you can keep tabs on the project by subscribing to the newsletter, and through the Slack channel.

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