The DAO token is similar to a FEE BACKED ASSET in BitShares, just that the "fees" generated are from those companies that received funding from "the DAO". How much the companies (like slockit) receive and how much they share their profits with "theDAO" has to be aggreed upon by DAO holders. I heard of 5% of slockits profits to be payed back to DAO holders. Don't know how that works out though. If this happens by means of the ETH token, then you better just stayed in ETH :)
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What will happen to ether price once the DAO decide to start cash out in usd? I think that buying the DAO and shorting ETH doesn't sound a bad idea..
Ok, that is interesting. So Slock.it just shares 5% of their total profits with "The DAO". Is "The DAO" a legal shareholder of Slock.it with 5% equity? How much money is Slock.it proposal asking for?
Are the paybacks another smart contract?
At the end, a DAO investment can take several years to really pay back any dividends. Quite an investment...
It would be too funny if THE DAO loses a big chunk of their evaluation with an ETH price drop. Wouldn´t be the first time for ETH to lose money through such a deal. The DAO has no option to hedge themselves against an ETH price drop.
It can enter a contract for difference assuming it can find millions of dollars of eth investors willing to leverage up.
Is the DAO unable to fund big projects?
Is there a difference a difference betwen DAO and BitShares fee backed asset? I can not understand why DAO got so much funds.
As far as I understand, "the DAO" is a VC firm that could potentially
invest in several "companies" while a Fee Backed asset is an
"investment" in a particular feature on the BitShares chain.
That said, "the DAO" is potentially more flexible than FBA from the
investors perspective while FBAs are more customized/specialized.