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1. Well, it's a bit more complex- DAO investors give up direct ownership in ether when they participate in the DAO in exchange for DAO Tokens. You're right that
by drcode 10y ago
1. Well, it's a bit more complex- DAO investors give up direct ownership in ether when they participate in the DAO in exchange for DAO Tokens. You're right that there could be some maligned incentives, but they fall on both sides of the ether valuation to a certain degree.
2. While the non-professional voters have little ability to do proper diligence, they DO have a mechanism for hiring outside parties to do diligence.
3. What complexity? Here's the source code, it's pretty darn simple: (https://github.com/slockit/DAO/blob/master/DAO.sol https://github.com/slockit/DAO/blob/master/DAO.sol) Also, I think the DAO solves two problems: First of all, VCs and VC lawyers and Hedge funds have enormous secondary costs that the DAO avoids entirely. Secondly, VCs and fund managers also have enormously maligned incentives which may affect their performance.
(Note: I am still a skeptic of the DAO and did not participate in the experiment)
- pablovidal85 10y agoSo how come you ended up not participating? What are the downsides of this experiment?
- drcode 10y ago1. reading the source code, I'm not convinced that it is entirely safe from various soft attacks large shareholders can take to influence the agenda of the fund. (This is hard to predict though... I don't see any full-on bugs, it's more an issue of shortcuts taken in the code for efficiency reasons that may or may not cause problems) 2. Many people are locking all their eth holdings at the same time in this fund- This will prevent them from acting on eth price fluctuations that I might possibly wish to exploit- I want to leave my options open. 3. The idea of creating a company that makes executive decisions by direct democracy is untested and may simply be nonviable. 4. There's some hairy legal issues that could cause liability for shareholders, and I'd rather not have that anxiety in my life.
- dflock 10y ago> The idea of creating a company that makes executive decisions by direct democracy is untested and may simply be nonviable. This isn't true - it been tested and runs successfully at scale: https://en.wikipedia.org/wiki/Workplace_democracy#Current_approaches https://en.wikipedia.org/wiki/Workplace_democracy#Current_ap... Two examples with Wikipedia entries that were easy to find are mentioned there: * https://en.wikipedia.org/wiki/Mondragon_Corporation https://en.wikipedia.org/wiki/Mondragon_Corporation - turns over ~$16B USD and employed ~74,000 people. * https://en.wikipedia.org/wiki/Ricardo_Semler https://en.wikipedia.org/wiki/Ricardo_Semler - Secmo