There has been a lot of talk among Ethereum enthusiasts lately regarding a concept known as “The DAO”. Now that the project has finally launched, the time has come to take a closer look at what this all entails. Interested parties can create their DAO tokens on the website.
The DAO Is Here And People Are Excited
Individuals who have been following the Ethereum landscape in recent months will have heard the term DAO before, which stands for Decentralized Autonomous Organization. At its core, such a concept would let anyone in the world create their own autonomous organization on the Ethereum blockchain, which will revolutionize the world as we know it.
As great as this concept sounds on paper, more is needed to give this idea a proper business value. This is why The DAO has been created, a project that will provide a return on investment to the DAO and all of its members, as well as benefit the decentralized ecosystem. Voluntary participation, democracy are some of the primary points of focus found in The DAO manifesto.
However, The DAO needs to be brought to life, which will take place through a token distribution. Every time The DAO receives a contribution in ETH, new DAO tokens are created. Every token gives the holder voting rights and proportionate control over the digital assets held by The DAO. None of these tokens will be owned by third-parties, to promote the decentralized nature of this concept.
What makes the “crowdsale” of The DAO so intriguing is how there is no set hard cap for the number of tokens to be generated. In fact, the total supply will depend on how much ETH is invested into this project over the course of 28 days, starting today. With no pre-mine and a deflationary growth rate model, interesting things are bound to happen in the coming weeks.
It is important to keep in mind the DAO tokens are not just another digital currency. Owning these tokens gives holders the right to submit a Proposal requesting the ETH balance they are entitled to. Moreover, they may also retrieve proportional amounts of ETH not committed to a proposal, and holders retain rights to receive rewards from The DAO even after they leave the project.
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