TGO

Network Project Analysis 25/03/2018

DAOstack ICO Analysis Chili’s and Toyota. The rest of the team
By: Gas Trader is riddled with academics and
To fully understand the extent of entrepreneurs from various industries.
the DAOstack project you need to first There are 3 advisors on the
understand what a DAO is and how it project. Jordan Greenhall is the co-
operates. DAOs are decentralized founder of DivX - a video streaming
autonomous organization are software company who took the
coordinated projects that operate by company public for a $600m IPO. He
economic incentives, self-executing code was also an angel investor and worked at
and shared goals. Typically the decisions Backfeed (builds tools for the DAO
are made by either written code of market). Seth Taube has a significant
through members voting into a system of financial background. Lastly, Primavera
hard coded rules in the form of smart De Filippi has been who is a serial
contracts. This allows companies to academic, most notably (and currently)
operate without CEOs or a defined at Harvard.
hierarchy. Typically there are a few The Investment
problems with DAOs, which include but One of the first components of
are not limited to: voter participation and DAOstack is the voting system that will
an inability to change the code once it be decentralized, simple, resilient and
has been deployed (both a good and bad scalable.
thing). The potential of DAOs is truly
limitless and can include: VC firms,
hedge funds, government, public utilities
and almost any other entity. DAOs not
only allow for hyper efficient workflow
but also allow for complete
transparency, equal participation
regardless of location and complete
ownership of investment.
DAOstack is an operating system
for DAOs in the sense that it will allow A governance system is
for creators and developers around the essentially a state transition system that
world to produce or collaborate building collects inputs from agents (agents are
DApps, distribute ownership and create the most basic unit of governance over
value by bringing the framework needed the blockchain) and under certain rules
for this process to the table. decides the next state of the chain.
Agents can input exactly 4 different
The Team actions to the DAO: submitting a
The project has been under proposal, voting yes or no, sending ETH
development and different stages of to claim shares (or in this case a unique
iteration for 3 years. Matan Field is the DAO token) and sending the fund token
CEO and lead developer for the project back to claim their share of ETH back
who has a PhD in physics and has been from the DAO. To determine the
focused on blockchain for 4 years. Josh weighting of each vote there will be a
Zemel has experience spearheading reputation system in place to ensure
growth initiatives at Equifax, Quinzos, there is not a centralization problem with

TGO Network Project Analysis 25/03/2018

pool or whales having complete control The token’s value is directly
of the DAO. derived from the growing DAO
There are a few other major ecosystem. The ability to offer proposals
components to the DAO stack: and vote on proposals will all be directly
tied to holding tokens, therefore, as the
ecosystem grows so does the buying
power for the token to stake/vote on the
platform.
There are several ways the value
of the token increases over time. One of
them is the boosting function in the
voting process. Individuals can “boost”
proposals to the front of the line by
staking tokens and if they get declined
the staked tokens get burnt – otherwise
they are returned. There will also be
several staking and burning mechanisms
in the proposal process that will
Arc is the layer of the stack that incentivize voting and staking for the
will deploy the underlying smart best proposals for any given DAO. All
contracts for the DAO. It will contain of the staking/voting mechanisms are
open-source modules or elements of configurable for each individual DAO
other DAOs allowing people to build, allowing the settings to be optimized
modify and maintain their DAOs. over time.
Arc.JS is the JavaScript gate that DAOstack already has
will allow for third-party apps simple to partnerships with Gnosis, Sapien
integrate into DAOs. Ultimately, this Network, Endor, Menlo and Cultu.re.
will be a major component in the
adoption and growth of DAOstack. Barriers
The ArcHives will be responsible The largest barrier to the success
for shared, curated databases to ensure of DAOstack is adoption. However, the
data integrity and quality. Compendium beauty of the product is that this does not
will contain governance elements require the general public to adopt the
including schemes and constraints. system rather it can be a group of
Mosaic will be an organization registry developers or like-minded people. Since
recording all the DAOs that have been DAOstack offers a hyper efficient
deployed through Arc. Lastly, the hive is management and governance system
a marketplace that will allow people to compared to traditional methods it is not
buy/sell services and resources. a huge stretch of the imagination to see
One of the first DApps on the that the adoption could be coming rather
platform is called Alchemy, which will soon (especially given the list of
provide an interface for users to interact partners).
with Arc and the DAO – allowing people
to configure DAOs, make proposals,
vote on them and collaborate on projects.