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> Token-holders can’t sell out now, because the DAO smart contract says tokens are locked up during this subscription period. But the lock-up period ends in sev

> Token-holders can’t sell out now, because the DAO smart contract says tokens are locked up during this subscription period. But the lock-up period ends in seven days. That’s when we’ll see a drop in Ether’s stratospheric price rise. “As soon as people are able to transfer out of DAO tokens, the Ether price will drop temporarily,” says Joseph Lee, who runs London-based bitcoin trading platform Magnr. “People would want to cash out. The price has been rising rapidly.” If you're thinking of shorting ETHUSD, I did some digging and found that the creation period ends at 2AM pacific on May 28. You can verify this by looking at the fourth constructor argument for the contract, which is the so-called "closingTime" in the contract: https://etherscan.io/address/0xbb9bc244d798123fde783fcc1c72d3bb8c189413#code https://etherscan.io/address/0xbb9bc244d798123fde783fcc1c72d... The fourth constructor argument is 0x57495e10, which is the UNIX epoch time corresponding to 2AM pacific on 5/28.

reddytowns 10y ago
I don't understand how people can cash out if the ETH are stilled locked in the DAO's tokens. They can sell the tokens, but no one is receiving any ETH. Once they start spending money on proposals, I could imagine more ETH getting into the market, but this would happen slowly, since proposals pay out over time. There is some talk that a single shareholder could, theoretically split his portion of the unspent pool of ETH into a new DAO, which he has full control over and could then sell, but such a process would be complex (he'd have to split it, then form a proposal and vote on that proposal to send the money to an address he controls, all through a command line interface, interfacing with the Dao contract directly. Not impossible, but over most people's heads). Instead, I'd think they'd rather than just sell their DAO tokens on the open market for ETH, BTC, or whatever else. If they sell it for ETH, they'd be effectively putting even more buy pressure on ETH, which may increase the ETH price even further. Here is more information on how The Dao can be split in order to get ETH funds out: https://forum.daohub.org/t/how-do-we-get-our-eth-back-from-dao-tokens/749/8 https://forum.daohub.org/t/how-do-we-get-our-eth-back-from-d...

reddytowns 10y ago

I don't understand how people can cash out if the ETH are stilled locked in the DAO's tokens. They can sell the tokens, but no one is receiving any ETH. Once they start spending money on proposals, I could imagine more ETH getting into the market, but this would happen slowly, since proposals pay out over time. There is some talk that a single shareholder could, theoretically split his portion of the unspent pool of ETH into a new DAO, which he has full control over and could then sell, but such a process would be complex (he'd have to split it, then form a proposal and vote on that proposal to send the money to an address he controls, all through a command line interface, interfacing with the Dao contract directly. Not impossible, but over most people's heads). Instead, I'd think they'd rather than just sell their DAO tokens on the open market for ETH, BTC, or whatever else. If they sell it for ETH, they'd be effectively putting even more buy pressure on ETH, which may increase the ETH price even further. Here is more information on how The Dao can be split in order to get ETH funds out: https://forum.daohub.org/t/how-do-we-get-our-eth-back-from-dao-tokens/749/8 https://forum.daohub.org/t/how-do-we-get-our-eth-back-from-d...