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The DAO had $150m worth of ETH exchanged for DAO tokens "invested" in it. I say "invested" because there is no actual investment with "The DAO". "Investors" ar
by nadaviv 10y ago
The DAO had $150m worth of ETH exchanged for DAO tokens "invested" in it.
I say "invested" because there is no actual investment with "The DAO". "Investors" are free to withdraw their funding back at any point before a proposal voting takes place. This is basically a risk-free proposition - "invest" your funding now to join on the buzz train, and take your money back at any point if you don't like the proposals being proposed. A majority vote within "The DAO" cannot actually vote for an investment with the entire funding available for "The DAO".
Technically speaking, until after some proposal wins a majority vote, no money actually changes hands... the investors are still in full control of their money and should still be considered the owners of it - not "The DAO".
For this reason, I think that calling this "the biggest crowd-funding ever" is incredibly misleading. There is no commitment and no risk, unlike how crowdfunding usually works.
- reddytowns 10y agoIt's not as simple as you make out. In order to get their ether out they need to go through a complex process that takes 48 days: https://daowiki.atlassian.net/wiki/display/DAO/Step-by-Step%3A+Splitting+the+DAO https://daowiki.atlassian.net/wiki/display/DAO/Step-by-Step%... I think a large portion of the investors would be unwilling to do this and simply sell their The DAO tokens on an exchange, thereby keeping their ethereum locked up in The DAO
- nadaviv 10y agoI was unaware of the 48 days delay. Thanks for the link. So, there is some risk in terms of temporarily lost liquidity, but I would still stay that comparing this to a traditional crowdfunding where investors actually lose control over their funds is nonsensical.
- drcode 10y agoRisk free, assuming you're OK with having your currency locked up in the interim- I'm predicting an ether price spike before the DAO is able to split, allowing ether holders to capture gains unavailable to DAO holders.
- gus_massa 10y agoRisk free, assuming the DAO doesn't have a bug that allows an attacker to steal all the money. Somewhat related: "Ethereum Contracts Are Going to Be Candy for Hackers" http://vessenes.com/ethereum-contracts-are-going-to-be-candy-for-hackers/ http://vessenes.com/ethereum-contracts-are-going-to-be-candy... HN discussion: https://news.ycombinator.com/item?id=11725624 https://news.ycombinator.com/item?id=11725624 (192 points, 6 days ago, 83 comments)
- Hortinstein 10y agoso...are DAO shares actually worth anything if you do not want to vote? I am confused on why people would invest