Ethereum whitepaper - 0 views
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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.
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Kurt Laitner on 11 Feb 14key application for OVNs
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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
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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.
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DAOs and DACs have already been the topic of a large amount of interest among cryptocurrency users as a future form of economic organization, and we are very excited about the potential that DAOs can offer. In the long term, the Ethereum fund itself intends to transition into being a fully self-sustaining DAO.
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In Ethereum, because of its Turing-completeness, a purely voluntary fee system would be catastrophic. Instead, Ethereum will have a system of mandatory fees, including a transaction fee and six fees for contract computations.
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The coefficients will be revised as more hard data on the relative computational cost of each operation becomes available. The hardest part will be setting the value of
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There are currently two main solutions that we are considering: Make x inversely proportional to the square root of the difficulty, so x = floor(10^21 / floor(difficulty ^ 0.5)). This automatically adjusts fees down as the value of ether goes up, and adjusts fees down as computers get more powerful due to Moore's Law. Use proof of stake voting to determine the fees. In theory, stakeholders do not benefit directly from fees going up or down, so their incentives would be to make the decision that would maximize the value of the network.