Ever since Bitcoin really began to take off in late 2017, the ICO movement seemed to be gathering more and more momentum with each passing month.
That is, until April hit, and the market began to deflate.
However, as we’ve moved into the month of May, the market is showing strong signs of rebounding.
The Top ICOs Are Selling Out in Seconds
Overall, the ICO raised a surplus of $30 million throughout the pre-sale and the main sale. This definitely looks like one to watch.
What is a DAO – And Why Are They So Important?
A Decentralized Autonomous Organization (more commonly known as a ‘DAO’) is essentially a way to manage a company or organization that is fully functional on its own – without the requirement for hierarchical management.
For example, imagine a vending machine that:
- Takes your money
- Dispenses your chosen snack in return
- Uses your money to re-order the goods it needs when it is running low
This is a very simple example of a DAO.
It is very important to know the difference between a DAO as a type of organization, and ‘The DAO’ which was simply the name of an organization that attempted to function as a DAO.
‘The DAO’ was, in its time, the world’s most lucrative crowdfunding project. However, it failed quite catastrophically due to a hack that was enabled as a result of an error in its code.
What’s with All the Hype Around DAOstack?
There are many reasons why the DAOstack ICO was so successful.
First off, despite the hype and huge potential of DAOs, creating the DAO framework is very challenging, and as a result, there are not many that are fully functional in existence yet.
DAOstack is aiming to make the process of creating a DAO easier by essentially acting as the ‘sandbox’ for all DAOs to operate from and allowing its users to use the platform to create their own token. This is set to drastically lower the barrier to entry.
In a recent Forbes article, the CEO and co-founder of the DAOstack platform, Matan Field, summed up its major benefits quite succinctly:
“With DAOstack, thousands of open-source creators can jointly produce decentralized applications (DApps), while distributing individual ownership in the product to contributors of value.”
One of the key features of DAOstack is the voting system. This will allow contributors to submit proposals that other users can vote on within a specified time limit.
The DAOstack platform will use the GEN token, which users can use to promote proposals within its ecosystem.
GEN can’t be used to buy voting power, and it can’t be used to vote. Instead, users will stake it for or against proposals. This will determine whether or not it rises to the attention of voters. If users stake their GEN on proposals that voters decide to pass, they will be rewarded with more GEN. If they stake it on a proposal that fails, they will lose their GEN.
GEN tokens will also be required if users want to use the platform’s Arc framework to create a DAO.
Which Other ICOs Should We Keep an Eye On?
Although the whitelist contained over 20,000 potential investors, the token sale involved only 6,000 contributors, meaning many missed out.
Another platform, Bezant, which is designed to connect influencers, creators, and e-commerce merchants, also managed to raise a significant $16.3 million during its pre-sale, which sold out in less than an hour.
Will DAOs Be the Future?
It is becoming clear that, despite the huge setback faced by The DAO organization, the main idea behind DAOs still shows lots of potential.
With the rise of platforms like DAOstack to act as a framework for DAOs and thereby reduce the level of technical barriers currently in place, there is a very likely possibility that we will see a significant rise in the number of DAOs popping up over the next couple of years.