DAO

Blockchain company Slock.it launched The first DAO project, The DAO, an early decentralized autonomous organization (DAO) and venture capital fund. At that time, 11,000 people invested 11.5 million ETH, accounting for 14% of ethereum's total supply and worth about $150 million. This also made The DAO The largest crowdfunding project at that time, and The DEGREE of FOMO was beyond The imagination of many people, including The project owner himself. "The DAO is a paradigm shift in The concept of economic organization. It provides complete transparency, complete shareholder control, unprecedented flexibility and self-governance."

In 2020, DAO service platforms, represented by Aragon (2016) and DAOstack(2018), provided DAO tools for thousands of community projects and deposited hundreds of millions of dollars into governance. Incomplete statistics show that the number of DAO participants has exceeded 60,000 addresses, increasing by more than 60 times.

Developers in the Ethereum community forked the code, this time to modify the smart contract in order to develop a more complex DAO. Examples include MetaCartel Ventures and the Marketing DAO, which can allocate and transfer shares and other assets among members. Since then, the for-profit DAO MetaCartel Ventures, which focuses on early-stage investments in Ethereum projects, has raised nearly $24 million from its 64 members.

The Moloch DAO was created to manage allocations for Ethereum 2.0, the ongoing ethereum expansion plan. The design of V1 provides a classic paradigm for on-chain DAO investment, and forms the supply and demand negotiation mode of early investment into on-chain norms through simple and elegant codes. Moloch can be described as two main smart contracts: 1. Moloch. Sol - manages membership, voting rights, submission of proposals, voting and processing of voting results; 2

On June 17, 2016, hackers took advantage of The DAO's "recursive invocation" and "call transfer to avoid Destruction" vulnerabilities to carry out more than 200 attacks, stealing a total of 3.6 million Ethereum, more than a third of The total amount of Ethereum raised for The project.

Luis Cuende and Jorge Izquierdo created Aragon on Top of Ethereum. Aragon is like a DAO factory on top of Ethereum; Whether you want to build a corporation, an open source project, a foundation, a nonprofit, or even a hedge fund, it provides enough modular functionality for users to choose from. For example, the shareholding structure chart, token conversion mechanism, voting, job appointments, financing and accounting required to create an online version of a company can be found in Aragon's toolkit. Aragon itself is also a DAO. Luis Cuende and Jorge Izquierdo led the way by leaving their management roles at Aragon and starting Aragon One, a company responsible for the development of technology for the project. AragonBlack team is responsible for content marketing; Aragon Forum provides the function of community discussion and monitoring; The Aragon Association is run by community representatives who are responsible for financial matters and are released quarterly. Moreover, Aragon's financial situation is very transparent, and it can learn the details of each quarter's expenditure on the official website, playing the role of the model of DAO. There are currently more than 500 DAOs running on it; It costs less than $5 to deploy a DAO on it, which is pretty cheap. At present, most DAOs are experimental in nature and fail to give full play to the potential of Aragon. Although Aragon is an ideal and feature-rich platform, it still suffers from the low usage of DApps in ethereum as a whole. Currently, there are only 23 active users and 77 transactions per day on the platform in the past month. There is still a lot of room for growth. Another concern with the platform is governance. Its token ANT represents the governance equity of the platform and has the power to control the development route of Aragon project. However, the low turnout of token holders and excessive concentration of tokens reflect the maladjustment of Aragon's governance model.