Distributed Autonomous Corporations (DACs)

I have used the document below to explain what a Dac is and not.

The future of the decentralized web

Distributed Autonomous Corporations (DACs), or Decentralized Autonomous Companies, are a generalization of the concept of a crypto-currency where the currency is backed by the services its miners perform rather than a real-world commodity like gold, oil, or, ahem, thin air. If we can barter for goods and services, why can’t we back currencies with goods or services?

DACs may be simultaneously viewed as crypto-currencies and crypto-equities (unmanned businesses). As businesses, they perform services intended to be valuable to their customers. Such services might include money transmission (Bitcoin), asset trading (BitShares), domain name services (DomainShares), or a thousand other business models sure to emerge as people realize that DACs are not mere “altcoins”.

DACs pay for the services they need (like computer resources and bandwidth) with shares of their own company “stock”. They charge for their services using those same shares. Finally, they transfer all profits they earn to their shareholders denominated in those same shares. To the extent that their services are in demand, those same shares will be in demand. Just like a brick and mortar and flesh and blood company.

To the outside world a DAC is nothing but a crypto-currency backed by the value of the services it provides. But as owners of shares in a DAC, you may be entitled to a share of the profits that DAC earns from providing those services. Every DAC will have its own terms and conditions. You can always choose to view your DAC shares polymorphically – either as spendable coins or as shares in a profitable, perhaps dividend-paying business. Just like light can be viewed as both a particle and a wave.

Bitcoin itself can be viewed as an early form of DAC. We are generalizing the concept for use in the open source community, building on Bitcoin's proven technology. Bitcoin could be reimplemented as a full open standards-compliant DAC. Perhaps someday it will.

Distributed Autonomous Corporations have many advantages. DACs are...

Corporations – They are, and of a right ought to be, free and independent persons.
Autonomous – once up to speed; they no longer need (or heed) their creators.
Distributed – there are no central points of control or failure that can be attacked.
Transparent – their books and business rules are auditable by all.
Confidential – customer information is securely (and incorruptibly) protected.
Trustworthy – because no interaction with them depends on trust.
Fiduciaries – acting solely in their customers’ and shareholders’ interests.
Self-regulating – they obey their own rules like, well, robots.
Incorruptible – no one can exercise seductive or coercive influence over them.
Sovereign – over their digital resources. They don’t need governments to exist.
Metaphorically, DACs work very much like familiar BMFB corporations.

They can be non-profit, for-profit or both at the same time!
You can access their products and services on-line.
You can buy and sell their stocks and bonds.
Shareholders can earn dividends; bondholders can earn interest.
Behaviors, rules and by-laws can only change by stakeholder majorities.
After paying its expenses to those who supply its operating resources, all remaining profits are autonomously distributed to stakeholders according to each DAC's published by-laws. Other DAC developers may implement and publish their own open source by-laws under their own business models. How well these business rules are received will affect the ability of their DACs to compete in the free marketplace.

{The Author and credit for this work above is Stan Larimer}

What i propose using the above statement is a DAC that decentralizes the electricity supply from energy companies to the customers at the cheapest price?
We track the price of electricity per kilowatt to FTC, miners mine FTC, anyone can buy electricity with FTC. asset trading {FTCshares} or assets {Dacshares}.
Its just an idea, i do have more information, but i wanted to see what the Feathercoin community thought.
Please fill in any gaps. Some of the wording might seem strange, but if you understand what the author is saying certain words have regulations.
I have used FTC as an example.



  • StephanTualStephanTual London, EnglandMember, Moderator Posts: 1,282 mod
    "i wanted to see what the Feathercoin community thought"
    Mmmm... you're sure you're in the right forum? :)
  • garygary Member Posts: 6
    Ursium, yes i am sorry for leaving the feathercoin words in there i am new not a coder but love the tech and what it can do, be gentle. did you read what i said regarding electricity?
  • LeanLean Member Posts: 28 ✭✭
    Interesting idea. There are goods and services, like Internet and electricity, that tend to be free, but seems they never get free. This idea could be a catalyzer to finally free these things.
  • StephanTualStephanTual London, EnglandMember, Moderator Posts: 1,282 mod
    edited February 2014
    @gary, yup, and I find it interesting. I'm a big believer that the advent of DACs is going to be enabling people to 'vote with their feet'. Electricity is a tough one though, because the national grid is not something that's easy to access from a physical point of view.

    Let's say such a DAC raises 1 billion dollars (to put money considerations aside), how do you see it being implemented from a meatspace point-of-view? (tracking who-uses-what).

    EDIT: and also, the transition from the current monopolistic entities to a fully decentralized model?
  • mpolaviejampolavieja Member Posts: 20
    Only credit currencies need "backing" (i.e. currencies that are someone else´s liability). Any other currency that is not credit does not need any backing at all (physical gold, silver, cattle, salt, wheat or BTC).

    A different thing is that the currency itself is useful for other things different from being a currency. But that is a general rule for all economic goods. The value of any economic good is higher and more stable as additional uses for that economic good are discovered.
  • garygary Member Posts: 6
    Hi All, Thanks for the comments, I will hopefully elaborate on my idea, when you take the idea of microgeneration of power to the community level its gets quite interesting.

    First You have the sole power generator, ie solar, wind, biofuels, etc,

    Second You can have community generated renewable energy, ie Anaerobic Digestion on a big scale or to the size of the community, which will produce biofuels, to use as energy. All organic waste including human waste, all turned back into useful energy.

    Third There are technologies out there know, that will turn all plastics back into usable oil for energy, plus you get 100% natural fertiliser.

    Forth You upscale this and connect everything together, communities, cities, counties and so on.

    I know i am leaving out much of the details but you can see where i am going with this.
    The tech is there because i have done my research, and when you tell people that, if they work together we can produce are own energy to benefit everyone they will jump at the chance. You can just bypass the grid altogether and create you own grid at a low cost.
  • StephanTualStephanTual London, EnglandMember, Moderator Posts: 1,282 mod
    I've just discovered - http://www.enercoop.fr/ thanks to this post: http://www.reddit.com/r/ethereum/comments/22cck8/looking_for_ethereum_enthusiasts_to_discuss_the/cglfbp5 - right up your alley, and proves that it's possible.
  • garygary Member Posts: 6
    Thanks for the link just posted a link back to the forum might drag a few new users? By the way "EveryThing is Possible, and AnyThing is Possible".
  • AlexilaAlexila ThailandMember Posts: 3
    It's been a while for this topic. Let's revive it a bit.
    Is there any practical application or script available, whether on Ethereum or other platforms, which allows to incorporate a company on a blockchain, records founders, stakeholders, issue initial shares, distribute them among founders, keep track of raised capital, spending, issue dividends (in cryptocurrency ofc), raise additional shares, etc.?
    Would appreciate any comments and links. Thanks!
  • JasperJasper Eindhoven, the NetherlandsMember Posts: 514 ✭✭✭
    Take it you mean the 'DAO' portion of this discussion. Have been plenty of developments on this fronts. Check out i.e. Eris,(probably this will be more active) ProDOUG.
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