All About DAOs

What is a DAO?

A DAO (Decentralized Autonomous Organization AKA Decentralized Autonomous Corporations) is an organization that is operated through a set of business rules operating in computer code.

"Distributed Autonomous Corporations (DACs) run without any human involvement under the control of an incorruptible set of business rules." 2013 Stan Larimer

What is 'The DAO'?

'The DAO' is a particular instance of a decentralized autonomous organization. It recently set the record for the largest crowdfunding campaign ever having reached $135 Million USD (As at 18th May 2016). It has been instantiated on the Ethereum blockchain and it's objective is to provide a new decentralized business model for organizing both commercial and non-profit enterprises. 'The DAO' will operate as a hub that disperses funds (currently in Ether, the Ethereum value token) to other startups and projects. The business rules of the organization are managed by a distributed democratic process by the backers of 'The DAO'. This process is used to help determine the future direction of the organization and which projects will actually get funded following a voting period.

What are DAO Tokens?

During the initial creation phase where 'The DAO' is funded via ETH, new DAO tokens are created in that moment. Each DAO token holder is granted voting rights and complete control over 'The DAO's digital assets proportional to the amount of DAO tokens they hold.

DAO tokens:
  • Allow the holder to vote on any expenditure the DAO could make
  • Are fully transferable. They can be traded peer-to-peer or on an exchange
  • Represent a relative portion of The DAO's crypto assets at any given time

How do I Trade DAO Tokens?

On 28th May 9:00AM GMT (28th May 7:00PM AEST) trading of 'The DAO' tokens on BTC Markets tokens will be enabled. If you have tokens you are wanting to trade but don't yet have a BTC Markets account, now is the perfect time to create an account and get prepared for the opening of trade. We will be lauching two trading pairs DAO/ETH and DAO/BTC. To trade DAO tokens your first step will be to deposit them into your BTC Markets account.

Instructions on how to deposit tokens are now available: Transfer tokens from Mist and Transfer tokens from MyEtherWallet.