DAO (Decentralized Autonomous Organization) was firstly created on Ethereum platform as a digital organization and a form of venture capital fund.
DAO is not attached to any particular place in space, state or people, who could conduct the usual company management.
As a result, the question of regulatory authorities and their interaction with a stateless company is still open.
Ethereum DAO in 2016 was one of the first and largest projects of its kind in the history of cryptocurrencies, rising 150 million dollars as in investment. In case of Ethereum, DAO's reputation was tarnished by the row realization of smart contracts. Hackers have used the vulnerability in the DAO code and have transferred one-third of DAO funds to their accounts. Ethereum community decided to restore the funds, which led to a fork that created a new blockchain- ETC.
How DAO works
The DAO idea is that the company operational rules are migrated to code and digital form.
Decisions are made by shareholders, nodes or network members, who control a certain number of tokens or smart contracts. Project share gives the right to vote according to the member's share weight.
Pre-programmed rules describe, what will happen in the system due to one or another shareholders decision. Such infrastructure use is almost unlimited in scale and application areas.
DAO as a new form of human organization, is only gathering its potential. Many opportunities and examples of how to use the full power of a decentralized organization are still ahead.
Today, DAO members focus on projects, related to resource sharing economics (Sharing), IoT applications and blockchain.
Minter DAO has already been created and is constantly funding with 10% from all fees and rewards in Minter Network. Minter Development Foundation is US company representing the interests of the Minter network and the DAO. It may be the first experience of adapting autonomous companies to today's realities.
The company name is the Minter Development Foundation.
Legal address is 548 Market St #32852, San Francisco, California 94104-5401.
The network future depends on the developers' interest in blockchain technology. So we plan to introduce a tax on blockchain rewards and commission costs. A 10% fee will be enough for everyone to be satisfied - users with new features, validators with reliable and effective updates, and developers with fair rewards for their work.
The research and launch of DAO is our priority for the next few years. Keep an eye on the updates so that you will not miss anything.
DAO Minter started its operation in MBank. DAO in it plays a role of the guarantor, and also covers the commissions of buyers and sellers from the specially generated budget for network development.
It is planned to launch the whole Minter DAO functionality in 2020.
Economy of the future
The economy trends like searching the methods of cost reduction and replacement of human labor by machines - create a good potential for DAO.
The companies without chiefs and hierarchy free from usual expenses and maintenance costs, almost completely excluding the human factor, can become the following stage of corporate development. In case of agreements with regulatory structures, blockchain data can replace many public records such as birth certificates, marriage certificates, property rights.
Hospitals, as well as other public services, can operate autonomously. Taxi companies can accept orders without operators and manage drones. The solutions that already exist in the models of "responsive robot economy" and Lights out (manufacturing) can become the first base for the application of DAO in an industry.
Imagine the future, when the goods are produced by robots with consideration of market demand, are sold on with minimum costs and residuals, and all this without human participation. This is not science fiction, but practical development of advanced companies, such as Airalab.
The DAO model has a huge potential and, partially or fully, can be applied and adapted to almost any business.