The DAO (organization)

The DAODAO
The DAO was a digital decentralized autonomous organization, and a form of investor-directed venture capital fund.wikipedia
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Decentralized autonomous organization

decentralized autonomous corporationblockchainDAO
The DAO was a digital decentralized autonomous organization, and a form of investor-directed venture capital fund. The DAO was a decentralized autonomous organization that exists as a set of contracts among people that resides on the Ethereum blockchain;
A well-known example, intended for venture capital funding, was The DAO, which launched with $150 million in crowdfunding in June 2016, and was immediately hacked and drained of in cryptocurrency.

Ethereum

EtherETHETH blockchain
It was instantiated on the Ethereum blockchain, and had no conventional management structure or board of directors. The DAO was a decentralized autonomous organization that exists as a set of contracts among people that resides on the Ethereum blockchain;
In 2016, as a result of the exploitation of a flaw in The DAO project's smart contract software, and subsequent theft of $50 million worth of Ether, Ethereum was split into two separate blockchains – the new separate version became Ethereum (ETH) with the theft reversed, and the original continued as Ethereum Classic (ETC).

Crowdfunding

crowdfundedcrowd fundingcrowdfund
The DAO was crowdfunded via a token sale in May 2016.
and "The DAO."

Ethereum Classic

Ethereum Classic (ETC)
This was controversial, and led to a fork in Ethereum, where the original unforked blockchain was maintained as Ethereum Classic, thus breaking Ethereum into two separate active blockchains, each with its own cryptocurrency.
In May 2016, a venture capital fund called The DAO built on Ethereum raised around $168 million, with the intention of investing in projects using smart contracts.

Fork (blockchain)

hard forkforkfork referring to a blockchain
Eventually, 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.
For example, Ethereum has hard-forked to "make whole" the investors in The DAO, which had been hacked by exploiting a vulnerability in its code.

Smart contract

smart contractsDigital contractscontracts
The DAO was a decentralized autonomous organization that exists as a set of contracts among people that resides on the Ethereum blockchain;
Such an attack, difficult to fix quickly, was successfully executed on The DAO in June 2016, draining in Ether while developers attempted to come to a solution that would gain consensus.

Solidity

A Cornell University researcher stated that Solidity was partially to blame for The DAO hack that took place in 2016.

Business

for-profitenterprisefirm
The DAO had an objective to provide a new decentralized business model for organizing both commercial and non-profit enterprises.

Nonprofit organization

non-profitnon-profit organizationnonprofit
The DAO had an objective to provide a new decentralized business model for organizing both commercial and non-profit enterprises.

Open-source software

open sourceopen-sourceopen source software
The code of the DAO is open-source.

Stateless society

statelessstateless societiesfreedom from government
The DAO was stateless, and not tied to any particular nation state.

Nation state

nation-statecountrynation-states
The DAO was stateless, and not tied to any particular nation state.

Regulatory agency

regulatorregulatory agenciesregulators
As a result, many questions of how government regulators would deal with a stateless fund were yet to be dealt with.

Kraken (company)

KrakenKraken cryptocurrency exchangeKraken exchange
The DAO was delisted from trading on major exchanges such as Poloniex and Kraken in late 2016.

GitHub

github.comGistOctocat
The computer code behind the organization was written by Christoph Jentzsch, and released publicly on GitHub.

Vulnerability (computing)

vulnerabilitiesvulnerabilitysecurity vulnerabilities
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 problems had been resolved.

Switzerland

Swiss🇨🇭SWI
In order to provide an interface with real-world 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 exchange Bity SA.

Société à responsabilité limitée

SARLSàrlS.A.R.L.
In order to provide an interface with real-world 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 exchange Bity SA.

Neuchâtel

NeuenburgNeuchâtel, SwitzerlandNeufchâtel
In order to provide an interface with real-world 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 exchange Bity SA.

TechCrunch

Tech CrunchCrunchBaseTechCrunch 50
In May 2016, TechCrunch described The DAO as "a paradigm shift in the very idea of economic organization. ... It offers complete transparency, total shareholder control, unprecedented flexibility, and autonomous governance."

Vector (malware)

attack vectorvectorvectors
Risks included unknown attack vectors and programming errors.

Software bug

bugsbugsoftware bugs
Risks included unknown attack vectors and programming errors.

Piercing the corporate veil

pierce the corporate veilcorporate veillifting the corporate veil
There was also a risk that there would be no corporate veil protecting investors from individual legal and financial liability for actions taken by The DAO and by contractors in which The DAO invested.

Blockchain

Blockchainsblockchain technologyblock
It was instantiated on the Ethereum blockchain, and had no conventional management structure or board of directors. The DAO was a decentralized autonomous organization that exists as a set of contracts among people that resides on the Ethereum blockchain;