Transfer Ethereum From Etoro To Metamask

Decentralized business model based on the Ethereum blockchain

The DAO (system)
Type Decentralized autonomous organization
Industry Cryptocurrency software venture capital fund
Founded 2016

Area served

Global[one]

Cardinal people

Stephan Tual, Simon Jentzsch, Christoph Jentzsch
Total assets ETH 11.5 million[2]
Owners +eighteen 000 stakeholders[three]

Number of employees

0 (automatic)[iv]
The DAO (software)
Repository github.com/blockchainsllc/DAO
Written in Solidity
License GNU LGPL v3+

The DAO, whose logo featured a uppercase Đ, was a digital decentralized autonomous organization[5]
and a course of investor-directed venture upper-case letter fund.[6]
Subsequently launching in Apr 2016 via a token sale, information technology became one of the largest crowdfunding campaigns in history.[half-dozen]

The DAO had an objective to provide a new decentralized business model for organizing both commercial and not-profit enterprises.[7]
[8]
It was instantiated on the Ethereum blockchain and had no conventional management structure or lath of directors.[vii]
The code of the DAO is open-source.[9]

Christoph Jentzsch at the Festival of the Future (Festival der Zukunft) from 1E9 and Deutsches Museum in Munich, Germany on July 22nd 2022.

In June 2016, users exploited a vulnerability in The DAO code to enable them to siphon off one-third of The DAO’s funds to a subsidiary business relationship. The Ethereum community controversially decided to difficult-fork the Ethereum blockchain to restore approximately all funds to the original contract. This dissever the Ethereum blockchain into two branches, each with its own cryptocurrency, where the original unforked blockchain continued as Ethereum Archetype.[10]

By September 2016, the value token of The DAO, known by the moniker
DAO, was delisted from major cryptocurrency exchanges (such as Poloniex and Kraken) and had, in effect, become defunct.[xi]
[12]

History

[edit]

The open source computer code behind the organization was written principally by Christoph Jentzsch, and released publicly on GitHub, where other contributors added to and modified the code.[6]
Simon Jentzsch, Christoph Jentzsch’southward blood brother, was also involved in the venture.[6]

The DAO was launched on thirty April 2016 at 01:42:58 AM +UTC on Ethereum Block 1428757,[13]
with a website and a 28-day crowdsale to fund the organisation.[fourteen]
The token sale had raised more
U.s.a.$34 million
by 10 May 2016, and more than
The states$l million-worth of
Ether
(ETH)—the digital value token of the Ethereum network—by 12 May, and over
US$100 one thousand thousand
past 15 May 2016.[14]
[xv]
On 17 May 2016, the largest investor in the DAO held less than 4% of all DAO tokens and the elevation 100 holders held just over 46% of all DAO tokens.[sixteen]
The fund’s Ether value as of 21 May 2016[update]
was more than
United states$150 million,[17]
from more than than eleven,000 investors.[eighteen]

As of May 2016, The DAO had attracted most fourteen% of all Ether tokens issued to date.[i]

On 28 May 2016 the DAO tokens became tradable on various cryptocurrency exchanges.[19]
[11]
[12]

A paper published in May 2016 noted a number of security vulnerabilities associated with The DAO and recommended that investors in The DAO hold off from directing The DAO to invest in projects until the issues had been resolved.[20]
An Ethereum developer on GitHub pointed out a flaw relating to “recursive calls”. On June 9 information technology was blogged about by Peter Vessenes, founder of the Blockchain Foundation.[21]
By June 14, fixes had been proposed and were pending approval by members of The DAO.

On June sixteen, further attention was called to recursive call vulnerabilities past bloggers affiliated with the Initiative for CryptoCurrencies & Contracts (IC3).[22]

On June 17, 2016, the DAO was subjected to an attack exploiting a combination of vulnerabilities, including the i concerning recursive calls, that resulted in the transfer of 3.6 meg Ether – effectually a third of the 11.5 1000000 Ether that had been committed to The DAO – valued at the time at around $50M.[2]
[23]
The funds were moved into an account subject to a 28-day holding menses under the terms of the Ethereum smart contract so were not actually gone.

Members of The DAO and the Ethereum community debated what to do next, with some calling the attack a valid but unethical maneuver, others calling for the Ether to exist re-appropriated, and some calling for The DAO to be close down.[23]
[24]
Eventually on July xx, 2016, the Ethereum network was hard forked to move the funds in The DAO to a recovery address where they could be exchanged back to Ethereum by their original owners.[25]
However, some connected to apply the original unforked Ethereum blockchain, now called Ethereum Archetype.

In September 2016, Poloniex de-listed DAO trading pairs, followed by Kraken in December 2016.[11]
[12]

Functioning

[edit]

The DAO was a decentralized autonomous organization[26]
that exists equally a set of contracts that resides on the Ethereum blockchain;[27]
Information technology did not have a physical accost or people in formal direction roles. The original theory underlying the DAO was that by removing delegated power from directors and placing information technology directly in the hands of owners, the DAO removed the ability of directors and fund managers to misdirect and waste investor funds.[28]

As a blockchain-enabled organization, The DAO claimed to be completely transparent: everything was done past the code, which anyone could come across and audit.[29]
However, the complexity of the code base and the rapid deployment of the DAO meant that the intended beliefs of the system and its actual behavior differed in serious ways that weren’t apparent until afterwards the set on occurred.[xxx]

The DAO was intended to operate equally “a hub that disperses funds (currently in Ether, the Ethereum value token) to projects”. Investors received voting rights by ways of a digital share token;[26]
they vote on proposals that are submitted past “contractors” and a group of volunteers chosen “curators” check the identity of people submitting proposals and make sure the projects are legal before “whitelisting” them.[6]
The profits from the investments will then flow back to its stakeholders.[3]

The DAO did not hold the money of investors; instead, the investors endemic DAO tokens that gave them rights to vote on potential projects.[17]
Anyone could pull out their funds past the time they first voted.[3]

The DAO’s reliance on Ether allowed people to send their money to it from anywhere in the world without providing whatsoever identifying information.[17]

In lodge to provide an interface with real-globe legal structures, the founders of The DAO established a Swiss-based company, DAO. Link, registered as a Société à responsabilité limitée (SARL) in Switzerland, apparently co-founded by Slock.it and Neuchatel-based digital currency substitution Bity SA. According to Jentzsch, DAO. Link was in Switzerland considering Swiss law immune it to “have money from an unknown source as long as y’all know where it’south going.”[6]

Marketing

[edit]

In May 2016,
TechCrunch
described The DAO as “a paradigm shift in the very idea of economical organization. … It offers complete transparency, total shareholder control, unprecedented flexibility, and autonomous governance.”[26]

Risks

[edit]

In May 2016, the program called for The DAO to invest Ether into ventures. It would back contractors and receive in return “clear payment terms” from contractors.[
citation needed
]

The organizers promoted the DAO as providing investors with a return on their investment via those “clear payment terms” and they warned investors that there was a “significant risk” that the ventures funded by them may neglect.

Risks included unknown attack vectors and programming errors.[27]
[31]
Additional risks included the lack of precedence in regulatory and corporate police; information technology was unknown how governments and their regulatory agencies would treat The DAO and the contracts it made. At that place was likewise a take a chance that there would exist no corporate veil protecting investors from individual legal and financial liability for actions taken by The DAO and by contractors in which they accept invested. It was unclear if the DAO was selling securities, and if information technology was, what type of securities those might be.[eighteen]

DAO has a democratized organizational construction so that command can be spread among members. There is no leadership or regulation in this structure. If members transfer cryptocurrency under little regulation, the risk of fraud remains. There is also no way to recover funds if a member mistakenly transfers cryptocurrency to the wrong wallet.[32]

Additionally, to role in the real world, contractors would likely need to convert the invested Ether into real-world currencies. In May 2016, chaser Andrew Hinkes said that those sales of Ether would be likely to depress the value of Ether.[
citation needed
]

The code behind the DAO had several safeguards that aimed to prevent its creators or anyone else from mechanically gaming the voting of shareholders to win investments.[17]
However, this would not foreclose the making of fraudulent profitability projections, and in add-on, a paper cited a “number of security vulnerabilities”.[xx]

Proposals

[edit]

Slock.it (a German Blockchain venture), and Mobotiq (a French electric vehicle kickoff-upwardly) were listed as seeking potential funding on the daohub.org website during the May “creation period”. Both Jentzsch brothers were involved in Slock.it too.[half dozen]

Regulation

[edit]

On 25 July 2017, the U.South. Securities and Exchange Commission published a report on initial coin offerings (ICOs) and The DAO, examining “whether The DAO and associated entities and individuals violated federal securities laws with unregistered offers and sales of DAO Tokens in exchange for ‘Ether,’ a virtual currency.” The SEC ended that DAO tokens sold on the Ethereum blockchain were securities and therefore possible violations of U.S. securities laws.[33]

References

[edit]

  1. ^


    a




    b



    Staff, The Economist. May 21st, 2016 The DAO of accrue. A new, automated investment fund has attracted stacks of digital coin Archived 2017-11-xviii at the Wayback Machine
  2. ^


    a




    b




    Popper, Nathaniel (17 June 2016). “Hacker May Accept Taken $50 Million From Cybercurrency Projection”.
    The New York Times. Archived from the original on xx June 2017. Retrieved
    iii March
    2017
    .


  3. ^


    a




    b




    c



    Tom Simonite for MIT Technology Review. The “Democratic Corporation” Called the DAO Is Not a Good Way to Spend $130 1000000 Archived 2016-06-02 at the Wayback Machine

  4. ^

    Brady Dale for The Observer. May 20, 2016 The DAO: How the Employeeless Visitor Has Already Fabricated a Boatload of Money

  5. ^

    The Decentralized Autonomous Organization and Governance Issues. Archived 2018-06-04 at the Wayback Machine Regulation of Fiscal Institutions eJournal: Social Scientific discipline Research Network (SSRN). five December 2017.
  6. ^


    a




    b




    c




    d




    e




    f




    g





  7. ^


    a




    b




    Rennie, Ellie (2016-05-12). “The radical DAO experiment”.
    Swinburne News. Swinburne Academy of Applied science. Archived from the original on 2016-05-16. Retrieved
    2016-05-12
    .

    When it reaches the terminate of the funding phase on May 28, information technology will begin contracting blockchain-based showtime-ups to create innovative technologies. The extraordinary thing about The DAO is that no single entity owns it, and information technology has no conventional management structure or board of directors.




  8. ^


    Allison, Ian (2016-04-30). “Ethereum reinvents companies with launch of The DAO”.
    International Business organisation Times. Archived from the original on 2016-05-01. Retrieved
    2016-05-01
    .



  9. ^


    “The DAO: How the Employeeless Company Has Already Made a Boatload of Money”.
    The New York Observer. 20 May 2016. Archived from the original on 23 May 2016. Retrieved
    31 May
    2016
    .



  10. ^


    “Hard Fork Completed”. xx July 2016. Archived from the original on fourteen August 2016. Retrieved
    21 July
    2016
    .


  11. ^


    a




    b




    c




    “Poloniex to delist 27 altcoins including DSH and DA”.
    Economical Times. 24 August 2016. Archived from the original on 4 Oct 2016. Retrieved
    17 June
    2017
    .


  12. ^


    a




    b




    c




    “DAO Delisting”.
    Kraken website. 18 December 2016. Archived from the original on 12 October 2018. Retrieved
    17 June
    2017
    .



  13. ^


    “TheDAO Token | Address 0xbb9bc244d798123fde783fcc1c72d3bb8c189413 | Etherscan”. Archived from the original on 2018-01-25. Retrieved
    2018-01-24
    .


  14. ^


    a




    b




    Vigna, Paul (2016-05-xvi). “Chiefless Company Rakes In More $100 Million”.
    Wall Street Journal. Archived from the original on 2017-06-25. Retrieved
    2016-05-16
    .



  15. ^


    Morris, David Z. (2016-05-15).
    “Leaderless, Blockchain-Based Venture Uppercase Fund Raises $100 Million, And Counting”.
    Fortune
    . Retrieved
    2016-05-sixteen
    .



  16. ^


    “Virtual company may raise $200 million, largest in crowdfunding”.
    Reuters. 17 May 2016. Archived from the original on ten June 2017. Retrieved
    20 May
    2017
    .


  17. ^


    a




    b




    c




    d




    Popper, Nathan (2016-05-21). “A Venture Fund With Plenty of Virtual Capital, but No Capitalist”.
    New York Times. Archived from the original on 2016-05-27. Retrieved
    2016-05-22
    .


  18. ^


    a




    b




    Macheel, Tanaya (19 May 2016). “The DAO Might Be Groundbreaking, Simply Is It Legal?”.
    American Broker
    (News). Archived from the original on 17 June 2016. Retrieved
    23 May
    2016
    .



  19. ^


    “BTC Markets To Enable Trading Of The DAO Token On May 28 – EconoTimes”.
    econotimes. 20 May 2016.


  20. ^


    a




    b



    Popper N. “Newspaper Points Up Flaws in Venture Fund Based on Virtual Money Archived 2020-11-08 at the Wayback Car.”
    New York Times
    May 27, 2016

  21. ^


    Vessenes, Peter (2016-06-09). “More Ethereum Attacks: Race-To-Empty is the Real Deal”. Archived from the original on 2021-01-19. Retrieved
    2021-06-x
    .



  22. ^


    “The Initiative for Cryptocurrencies & Contracts”.
    IC3. Archived from the original on 2017-02-14. Retrieved
    2017-02-xiv
    .


  23. ^


    a




    b




    Price, Rob (17 June 2016). “Digital currency Ethereum is cratering amongst claims of a $50 million hack”.
    Concern Insider. Archived from the original on 11 June 2017. Retrieved
    17 June
    2016
    .



  24. ^

    Klint Finley for Wired. June 18, 2016 A $50 One thousand thousand Hack Simply Showed That The Dao Was All Likewise Human Archived 2016-07-26 at the Wayback Auto

  25. ^


    “Study of Investigation Pursuant to Section 21(a) of the Securities Substitution Act of 1934: The DAO”
    (PDF). Securities and Exchange Commission. July 25, 2017. Archived
    (PDF)
    from the original on 9 June 2018. Retrieved
    xiii June
    2018
    .


  26. ^


    a




    b




    c




    Bannon, Seth (2016-05-16). “The Tao of “The DAO” or: How the autonomous corporation is already here”.
    TechCrunch. Archived from the original on 2016-05-17. Retrieved
    2016-05-16
    .


  27. ^


    a




    b




    Castillo, Andrea (2016-05-24). “Tin a Bot Run a Company?”.
    Reason. Archived from the original on 2016-05-26. Retrieved
    2016-05-25
    .



  28. ^


    “The DAO Volition Soon Become The Greatest Threat Banks Have Ever Faced”. 25 May 2016. Archived from the original on 24 June 2016. Retrieved
    31 May
    2016
    .



  29. ^


    “Ethereum’s $150-Million Blockchain-Powered Fund Opens Merely equally Researchers Telephone call For a Halt”. 28 May 2016. Archived from the original on 30 May 2016. Retrieved
    31 May
    2016
    .



  30. ^


    Morrison, Robbie; Mazey, Natasha C. H. L.; Wingreen, Stephen C. (27 May 2020). “The DAO Controversy: The Case for a New Species of Corporate Governance?”.
    Frontiers in Blockchain.
    three. doi:ten.3389/fbloc.2020.00025.



  31. ^


    Peck, One thousand. (28 May 2016). “Ethereum’s $150-Meg Blockchain-Powered Fund Opens Just equally Researchers Telephone call For a Halt”.
    IEEE Spectrum. Found of Electrical and Electronics Engineers. Archived from the original on 30 May 2016. Retrieved
    2 Feb
    2020
    .



  32. ^


    Dhanani, Ali; Hausman, Brian J. (2022). “Decentralized Democratic Organizations”.
    Intellectual Property & Technology Constabulary Journal.
    34
    (5): iii–9.



  33. ^


    “SEC Issues Investigative Report Final DAO Tokens, a Digital Nugget, Were Securities; U.S. Securities Laws May Apply to Offers, Sales, and Trading of Interests in Virtual Organisations. Press Release 2017-131”.
    U.South. Securities and Exchange Commission. Archived from the original on 2017-10-x. Retrieved
    2017-08-03
    .


Farther reading

[edit]

  • Vessenes, Peter (eighteen June 2016). “Deconstructing The DAO Set on: A Brief Code Tour”.
  • DuPont, Quinn (2017). “Experiments in Algorithmic Governance: An ethnography of “The DAO,” a failed Decentralized Autonomous System” (archive link). In
    Bitcoin and Beyond: The Challenges and Opportunities of Blockchains for Global Governance, edited by Malcolm Campbell-Verduyn. Routledge (in press).



Source: https://en.wikipedia.org/wiki/The_DAO_(organization)

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