But I did want to share this post for a few reasons:
1. You learn about Decentralized Autonomous Organizations (DAOs)
2. You learn about how “Ethereum” handled a massive hack.
The Dao of DAOs [Not Boring by Packy McCormick] – “Unlike a traditional fund, in which institutions and high net worth individuals (Limited Partners or LPs) invest money into a fund that other people (General Partners or GPs) invest into companies, investors in The DAO would be able to vote on proposals based on pre-set rules, established in smart contracts. Each person’s vote was weighted by the number of tokens they held, which was based on how much they had invested. If a proposed project received enough votes, the smart contract automatically triggered the investment of The DAO’s funds into the project’s ETH wallet.”
1. What really caught my eye about this was when the DAO was hacked and thieves stole ~$50 million (now worth $6.6 billion), the Ethereum core team decided to hard fork the ETH blockchain. A fork is basically like a cloning of the blockchain and now there are two of them. It’s a little like another dimension and in the new Ethereum dimension (which is the one now known as Ethereum), the theft never happened!
Of course, this all relies on everyone accepting the new version and using it over the old version. I think that’s pretty cool but also kind of goes against the idea of decentralized money because the core team was able to do this.
2. The part about DAOs is a little more complex (a DAO is a decentralized organization!) but worth digging into if you’re interested in this type of thing. I find it fascinating to think about.