Group items tagged

The general concept of a "decentralized autonomous organization" is that of a virtual entity that has a certain set of members or shareholders which, perhaps with a 67% majority, have the right to spend the entity's funds and modify its code. The members would collectively decide on how the organization should allocate its funds. Methods for allocating a DAO's funds could range from bounties, salaries to even more exotic mechanisms such as an internal currency to reward work. This essentially replicates the legal trappings of a traditional company or nonprofit but using only cryptographic blockchain technology for enforcement. So far much of the talk around DAOs has been around the "capitalist" model of a "decentralized autonomous corporation" (DAC) with dividend-receiving shareholders and tradable shared; an alternative, perhaps described as a "decentralized autonomous community", would have all members have an equal share in the decision making and require 67% of existing members to agree to add or remove a member. The requirement that one person can only have one membership would then need to be enforced collectively by the group.

Note that the design relies on the randomness of addresses and hashes for data integrity; the contract will likely get corrupted in some fashion after about 2^128 uses

This implements the "egalitarian" DAO model where members have equal shares. One can easily extend it to a shareholder model by also storing how many shares each owner holds and providing a simple way to transfer shares.