DAOs + Crowdfunding = The Future of Finance
We're going to skip the part where DAOs are engaging in unregulated crowdfunding for the moment. And instead, focus on what happens when hundreds or THOUSANDs of people use technology to do a thing.
1. Distributed Autonomous Organizations (DAO)s are where humans form an organization (some would call it a business but lets not get stuck in details) for the purpose of doing a thing.
2. #ConstitutionDAO formed so that its members could buy an original copy of the Constitution.
3. Calling it a DAO vs an LLC/Corp just means that members have some sort of #blockchain based ID that identifies them as members of the DAO.
4. DAOs are actually businesses because the members there in have a financial interest (represented by smart contracts /staking / shares etc....) in the thing the DAO was organized to do.
5. So its great that Humans are forming digital LLCs using blockchain ID (aka DOAs) as a form of identify and then together as The Crowd, engaging in #crowdfunding.
6. Humans getting together ( forming DAOs) do that to engage in Crowd -->Funding. Meaning, now that Humans have gotten together we're going to all contribute $ to do a thing. That thing is "crowdfunding". Crowdfunding is the activity that the Organization's members are now engaged in.
7. If you form a DAO and don't ask its members to contribute $ to do a thing (crowdfund), then thats just a free online club. Save yourself a ton of work and just use Twitter instead.
So yes! Please more DAOs!
Later, we'll talk about complying to U.S. Securities and Exchange Commission rules before the DAO pools $ to buy assets vs now that you've pooled $ and bought an asset, get fined by the SEC and then being compliant.
Regardless, yeaaa DAOs and crowdfunding! Lets see more of it!