A leading Japanese business firm, Coincheck recently announced support for the trending DAO tokens. Coincheck is a foremost Japanese organization based in Tokyo that provides worldwide cryptocurrency exchange and storage services.
DAO Token Arrives In Japan,Decentralized Autonomous Organization
Within a few days post its release, DAO has gained a tremendous popularity among the masses and it has been consistently in news since then. But many people are still unaware of the DAO concept. So before moving any further, let’s first discuss about DAO and the concept behind it.
What Exactly Is DAO? The Decentralized Autonomous Organization or simply DAO is basically a collection of Smart Contracts built on Ethereum Blockchain. The DAO project was initiated by a German company i.e Stock.It which has been building Ethereum based Smart Locks for quite some time now. The DAO network operates through a joint consensus which involves all the DAO token holders. The greatest virtue of it is its self-governance characteristics. It boasts an open functionality which is not influenced by any outside forces. The DAO software works autonomously on the Ethereum blockchain and it incorporates a joint ownership of all the shareholders who have given their contribution to the project.
DAO Tokens & Their Use The DAO system is powered by ETH which serves as a backbone for the DAO tokens and its sole aim is to support the projects delivered by the contractors by raising a large amount of Ethers during the initial stages. The DAO organization has been selling the tokens in exchange of Ethers and it has collected over $50 Million worth of Ethers so far without any outside support. In return, every DAO token holder is granted voting and ownership rights over the DAO network. Just like all the other digital tokens, the price of DAO token also varies with time. The new DAO tokens are generated in direct proportion to the amount of ETH transferred at a particular time.
Contractors & Curators The DAO community is run by a group of individuals called Contractors and Curators. A Curator is nominated by a collective voting by all the members of the community and can be discharged any time on certain grounds. The Curators decide what amount of ETH is to be received by contractors from the DAO.
The contractors are responsible for submitting various proposals for the development of products and services. The proposals are backed up in the form of smart contracts. The smart contract binds the contractor to certain terms and conditions.