An Ethereum startup founder discusses challenges facing next-generation technology applications for autonomous blockchain-based companies.
An Ethereum-based distributed autonomous organization (DAO) is a blockchain entity that operates according to a set of pre-defined rules that the members of the DAO help maintain and that they leverage to make collective decisions.
A DAO (which differs from other concepts like a DO) is principally created as a vehicle to achieve or maintain a shared purpose, and that will both receive and distribute funds (often in the form of cryptocurrencies or other blockchain-based tokens of value) and control actions designed to help promote or further the purpose of the DAO.
On the more mundane side, with no legal identity, owning physical assets, signing contracts with non-blockchain companies (real-world suppliers, contractors, etc) and tax issues can be difficult.
For example, it is not known:
- If DAO members can claim expenses against profits?