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Who exactly are you answerable to if your boss is a DAO? Does a group of random crypto enthusiasts act as the board of directors? If so, how do I short that com

Who exactly are you answerable to if your boss is a DAO? Does a group of random crypto enthusiasts act as the board of directors? If so, how do I short that company?

cagr 5y ago
This won't ever happen so you (we) won't get to short it unfortunately.
- hotpockets 5y ago
  I'm pretty sure there are crypto projects where you could, in fact, short it. Check out Beta Finance for instance.
  - arcticbull 5y ago
    There are but you really shouldn't. It's such a wasteland you'll get savaged before you can turn a profit. It's not grounded in fundamentals and it's exposed to industrial scale price manipulation. The only win is not to play.
trevyn 5y ago
It sounds like you’re trying to fit new pegs into old holes?
jacobr1 5y ago
Same way shareholders manage their ownership stake now? They elect a board of directors that oversees the senior management?
stepanhruda 5y ago
Find someone who will lend you their tokens (if it’s on-chain, you will need collateral) and sell them. Later you can buy same amount of tokens from the market for a lower price - if price indeed goes down.
erikpukinskis 5y ago
It depends how the DAO is structured. But a conservative setup would look exactly like an existing Corp. You answer to the CEO, the CEO answers to a board, and the board answers to the shareholders. In an early, conservative implementation, all of that could be offline except the shareholder votes, which would be automated on chain. The board would be beholden to the chain decisions via normal lawsuits in offline courts. In a more radical setup, the board votes could also be done in software. More radical still would force arbitration onto the chain. What will be interesting to watch in the coming decades is to see how much of the workings of a company can be done in software on-chain. It seems uncontroversial to say you could do shareholder votes there though… and that’s the minimum required for the scheme like this. You will definitely be able to short this stuff on a crypto exchange. Just like a USD short account you’d have to stake some capital, probably in BTC or ETH or something like that. And you’d have to hold enough crypto to pay your recurring short fees. And in the even of a margin call you might need to put up more capital.

Who exactly are you answerable to if your boss is a DAO? Does a group of random crypto enthusiasts act as the board of directors? If so, how do I short that company?

cagr 5y ago

This won't ever happen so you (we) won't get to short it unfortunately.

hotpockets 5y ago
I'm pretty sure there are crypto projects where you could, in fact, short it. Check out Beta Finance for instance.
- arcticbull 5y ago
  There are but you really shouldn't. It's such a wasteland you'll get savaged before you can turn a profit. It's not grounded in fundamentals and it's exposed to industrial scale price manipulation. The only win is not to play.

trevyn 5y ago

It sounds like you’re trying to fit new pegs into old holes?

jacobr1 5y ago

Same way shareholders manage their ownership stake now? They elect a board of directors that oversees the senior management?

stepanhruda 5y ago

Find someone who will lend you their tokens (if it’s on-chain, you will need collateral) and sell them. Later you can buy same amount of tokens from the market for a lower price - if price indeed goes down.

erikpukinskis 5y ago

It depends how the DAO is structured. But a conservative setup would look exactly like an existing Corp. You answer to the CEO, the CEO answers to a board, and the board answers to the shareholders. In an early, conservative implementation, all of that could be offline except the shareholder votes, which would be automated on chain. The board would be beholden to the chain decisions via normal lawsuits in offline courts. In a more radical setup, the board votes could also be done in software. More radical still would force arbitration onto the chain. What will be interesting to watch in the coming decades is to see how much of the workings of a company can be done in software on-chain. It seems uncontroversial to say you could do shareholder votes there though… and that’s the minimum required for the scheme like this. You will definitely be able to short this stuff on a crypto exchange. Just like a USD short account you’d have to stake some capital, probably in BTC or ETH or something like that. And you’d have to hold enough crypto to pay your recurring short fees. And in the even of a margin call you might need to put up more capital.