Can somebody explain what DAO is if I'm 5 years old?

adasebadaseb Member Posts: 1,043 ✭✭✭
I'm pretty technical with computers and engineering but I still don't understand what DAO is? What it does for Ethereum? What is slock.io ? What are tokens?


Comments

  • dlehenkydlehenky Member Posts: 2,249 ✭✭✭✭
    It's a stakeholder-run (no central governance) venture capital fund, based entirely on smart contracts on the Ethereum network, with all funding and profits paid in ETH. I'm sure someone will correct me if I've missed something. :)
  • syaoran99syaoran99 Member Posts: 204
    dlehenky said:

    It's a stakeholder-run (no central governance) venture capital fund, based entirely on smart contracts on the Ethereum network, with all funding and profits paid in ETH. I'm sure someone will correct me if I've missed something. :)

    You've got it right.
  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,291 mod
    But if you really want an ELI5 response.....

    You have a little bit of lego but not enough to build anything really cool. So you ask all your friends to bring their lego over and you put it all in a big pile. Then you start making cool stuff!

    (My brother and I were too poor to buy Transformers as kids but we had just enough lego to build them for ourselve, and that was cool!)
  • dlehenkydlehenky Member Posts: 2,249 ✭✭✭✭
    @o0ragman0o So, I thought from all the DAO talk that the token sale date had been announced, but I couldn't find that stated anywhere. Is the sale now forthcoming?
  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,291 mod
    edited May 2016
    The sale is current. You can buy tokens now and for the next 27 days.
    https://blog.slock.it/the-dao-creation-is-now-live-2270fd23affc#.mu8brv7ob

    I thought they would have given more warning and promotion...
  • dlehenkydlehenky Member Posts: 2,249 ✭✭✭✭
    @o0ragman0o Any indication as to how it's going?
  • workwork Member Posts: 2,084 ✭✭✭✭
    edited May 2016
  • dlehenkydlehenky Member Posts: 2,249 ✭✭✭✭
  • syaoran99syaoran99 Member Posts: 204
    work said:
    600k as it is now. I wonder if at this rate if 10m ETH minimum will get locked in.
  • syaoran99syaoran99 Member Posts: 204
    edited May 2016
    BTW the best representation of what The DAO is is basically

    The DAO = Company

    DTH = DAO Token holder = Directors/Partners

    Slock.it/other DAO = Employee/Employee applicants.

    What you get by being DTH= The DAO get profits that your employee(slock.it) generate in forms of ETH as a company. Director votes on whether profit is kept in the company funds/distributed or even decide on how many % is kept and distributed evenly based on token the individual director token share %.

    You also get to choose and vote who you hire as an employee (DAO proposals)

    Explained here.https://daohub.org/principles.html
  • adasebadaseb Member Posts: 1,043 ✭✭✭
    So slock.it is the first company to be opened by an DAO?

    In the future there might be more new ventures and companies that might be a DAO instead of going on the stock market with an IPO?

  • dlehenkydlehenky Member Posts: 2,249 ✭✭✭✭
    slock.it is the first company to receive seed capital from *this* DAO. Slock.it also developed *this* DAO (wrote the smart contracts, tested, etc.) as an open source project. Anyone can submit a proposal to the DAO to potentially receive funding for their idea/project/company. There's a forum for this subject, as @syaoran99 provided above, if you want to continue to ask questions about it. :)
  • BiodomBiodom Member Posts: 693 ✭✭✭
    i guess the attraction is that it is something that you can DO with your eth, apart from mining it, holding it and trading it.
    However, typically, I am a passive investor, while DAO essentially requires you participating in almost everything.
    I am thinking of investing a modest sum-if DAO works-great, and if not, not too much harm done.
    One thing is that slock.it with smart locks does not sound too interesting. They think that people would be eager to constantly do airbnb-like stuff.
    I doubt that. Maybe other companies originated from the DAO would be more interesting.
  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,291 mod
    @biodom, they are teamed up with a German energy company and have demonstrated an Ethereum power charging station for Electric vehicles. They also want to embed inductive charging coil at intersections so vehicles can charge while waiting at the lights and pay for it automatically. P2P energy markets have already been demonstrated on the live net. The scenarios are truly huge. It's not just airBnB type stuff. It's automated permissions and payment to practically anything.
  • Dr_House86Dr_House86 Member Posts: 566 ✭✭✭
    The thread fits perfect what i´m searching for.
    I have send the ETH to the Contract adress an have now a contract and the token.
    What can i do with this token and whats my advantage of this contract?
  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,291 mod
    @Dr_House86, the tokens you hold is your voting power. You can use them to vote upon proposals and management decisions in the DAO. You can also trade them effectively as shares on the open market and so will have their own value differing from the ether your invested in the DAO. They are also used to calculate rewards tokens for funds commited to contractors. When contractors or their projects pay the DAO, those profits can be claimed through the rewards tokens you hold. You can sell your normal tokens but keep the rewards tokens for the the projects you helped funded even if you leave the DAO.
  • syaoran99syaoran99 Member Posts: 204

    @Dr_House86, the tokens you hold is your voting power. You can use them to vote upon proposals and management decisions in the DAO. You can also trade them effectively as shares on the open market and so will have their own value differing from the ether your invested in the DAO. They are also used to calculate rewards tokens for funds commited to contractors. When contractors or their projects pay the DAO, those profits can be claimed through the rewards tokens you hold. You can sell your normal tokens but keep the rewards tokens for the the projects you helped funded even if you leave the DAO.

    Question is if the DAO is not profitable, people want out, do they get the full 1 ETH per 100 tokens they paid for or do they get ETH = 1ETH - payout to DAO in return when they liquidate the coin
  • BiodomBiodom Member Posts: 693 ✭✭✭
    the setup favors those who buys in the first 14 days, yet only 1.08mil ethers are currently committed after 48hr with 10mil that were expected.
    maybe the speed will pick up as we go toward the end of 14 days.
  • dlehenkydlehenky Member Posts: 2,249 ✭✭✭✭
    @Biodom That 10M ETH number is someone's "best over-the-top, wouldn't it be great" hopes and prayers. So, if it doesn't get close to that, it won't be considered a failure. I have heard other people say that the end of the first two weeks will probably be the peak buy time, as buyers rush to get tokens before the sale price starts to increase. We'll see.
  • rdnkjdirdnkjdi Member Posts: 135 ✭✭
    edited May 2016
    One thing I'm convinced of is that people underestimate in general how many failures there are to a success. For every AirBnB and Uber there have been dozens of companies that have failed in the exact same niche. The different factors are market maturity, technology maturity and management decisions.

    A DAO takes out that factor that is management - someone who's extremely passionate and makes incredibly good decisions. I guess I need to go read on DOA and slock.it but I hope there is some way they are interfacing with credit cards using Ethereum / Bitcoin as the backend.
  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,291 mod
    syaoran99 said:


    Question is if the DAO is not profitable, people want out, do they get the full 1 ETH per 100 tokens they paid for or do they get ETH = 1ETH - payout to DAO in return when they liquidate the coin

    DAO token holders have the option of selling their tokens on the open market or splitting from the DAO in which case the value of their tokens will be the intial value invested minus the amount contributed to funding contractors.

    Obviously the better option is to simply trade out. The split option is there only if there's some malicious attempt to take over the DAO itself.
  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,291 mod
    @dlehenky @Biodom , I think most of the big money is already in (10m USD ATM), and from people who have been following this project closely. I personally think they could have handled the launch a lot better with some broad based marketing in order to give non-followers in the fintech industry more time to clue up on what it's all about. ATM there are a lot of people out there scratching their heads, trying to make sense of what it is and whether they should put money on it. For those people, it's pretty unlikely that large sums are going to be committed based upon such little prior knowledge.
  • BiodomBiodom Member Posts: 693 ✭✭✭
    @o0ragman0o @dlehenky
    it almost looks like they wanted to launch DAO sale without any pre-warning as to present it as a fait accompli.
    My prediction is that they will raise at least $20mil or so.
    I decided to invest some, but not too much. maybe some earlier and some toward the end of the 14 day window.
    First, i would have to learn how to use mist, though.
  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,291 mod
    @biodom They wanted the 'community' to launch it and once all the code was finalised, tested and community members trained in deploying, that's what the community did. There were a number of parallel deployments and once Slock.it could verify the code and correct parameters, they chose one of those deployments at random as the 'official' one in which they would present their proposal. Once the official one had been chosen then people could start committing funds.
  • BiodomBiodom Member Posts: 693 ✭✭✭
    @o0ragman0o
    is there a good method to create paper wallets in ethereum?
    mytherwallet help page is mentioning paperwallet in passing with no explicit procedure outline, except for printing pdf.

    in addition, what is the best way to backup mytherwallet or mist?
    my understanding is that you need just to save json.dat file for mytherwallet.
    http://ethereum.stackexchange.com/questions/946/how-to-backup-mist-wallets
    is this ^^^^ pretty much what you need to do for mist?
  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,291 mod
    @biodom I just backup my keystore folder. I don't know about paper wallets, haven't seen but haven't looked.
Sign In or Register to comment.