What Does it Take to Succeed as a Decentralized Autonomous Organization?

William Mougayar is a Toronto-based angel investor discusses what makes a successful Decentralized Autonomous Organisation, or DAO for short. It can be thought of as a corporation run without any human involvement under the control of an incorruptible set of business rules. These rules are typically implemented as publicly auditable open-source software distributed across the computers of their stakeholders.

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a reply to: wasaka

Some of those interested in new models for building successful and massively scalable applications reject the term, arguing that the classification reintroduces legacy hierarchy-based structures with their regulatory and compliance issues, unnecessarily burdening those involved in their development. For example, in their white paper The Emerging Wave of Decentralized Applications, David Johnston, et al., argue that the term "Distributed Autonomous Corporations" shouldn't be used:

It is worth while to note that the authors of this paper agree with many of the concepts proposed by the Invictus authors and the spirit and ethics they [uphold] we embrace wholeheartedly. The point on which we disagree is one of property terminology, “Distributed” and “Autonomous” are great terms, we don’t believe “Corporation” in particular is a desirable term for these entities. One of our primary reservations with using the term is, “Corporation” carries a lot of historical and legal baggage that won’t necessarily best serve the community of developers and entrepreneurs seeking to describe and build these new projects. If you Google the definition of “Corporation” the result is: “a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.”