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I'm confused... what do you mean no one party has control over the funds? Surely the whole point of investing in a company is to transfer control of the invest
by lottin 6y ago
I'm confused... what do you mean no one party has control over the funds? Surely the whole point of investing in a company is to transfer control of the invested funds to the company so that the company can do what it intends to do. Otherwise what are we talking about here?
- chrisco255 6y agoThe funds are in a smart contract on the blockchain. They are protected by code which ties the result of on-chain votes to the release or emission of funds. DAOs mean the users, the token holders, get to participate in the company governance directly. They get to post in forums, create campaigns for changes to protocols, and vote on whether to implement new proposals and how much funding to allocate to those proposals. Maybe that's hiring a new developer. Maybe that's launching a new feature. Maybe it's incentivizing growth through marketing or other grassroots strategies. It's incredibly flexible.
- lottin 6y agoI see... so a DAO is corporation where shareholders are in charge of managing the company. It has no professional management, instead it's all managed by the shareholders democratically. If this is it, DAOs are probably a bad idea in most circumstances. There are good reasons why management is separated from ownership in modern corporations.