Slashdot Mirror
Researchers Criticize New DAO Ethereum VC Fund (softpedia.com)
Three cryptocurrency experts published a scientific paper Friday detailing seven attacks that could influence how the Decentralized Autonomous Organization (DAO) allocates its Ether funds. An anonymous Slashdot reader writes, "Coincidentally or not, they released their work with one day before funding for the DAO closed, and not surprisingly, Ether's price went down, devaluing the DAO from $150 million to $132 million."
From Softpedia: DAO is a crowdfunded project that works on the Ethereum network, a new crypto-currency network that deals with crypto-currency named Ether, which many experts say is better than Bitcoin's blockchain... Investors can submit funding proposals, on which the DAO users vote by submitting some of their tokens and a YES/NO vote. In the end, based on the tokens and YES/NO votes, the DAO's computer program decides on the outcome.
Softpedia reports that the paper released Friday also suggests a series of mitigations to a design they say will "incentivize investors to behave strategically; that is, at odds with truthful voting on their preferences."
From Softpedia: DAO is a crowdfunded project that works on the Ethereum network, a new crypto-currency network that deals with crypto-currency named Ether, which many experts say is better than Bitcoin's blockchain... Investors can submit funding proposals, on which the DAO users vote by submitting some of their tokens and a YES/NO vote. In the end, based on the tokens and YES/NO votes, the DAO's computer program decides on the outcome.
Softpedia reports that the paper released Friday also suggests a series of mitigations to a design they say will "incentivize investors to behave strategically; that is, at odds with truthful voting on their preferences."
Bitcoin's "success" (if you can call it that) is related directly to its algorithm which to this day is unbroken.
Any new system is subject to crazy ridiculous review, obviously. No one, I mean no one accepts this new system for anything. The fact that it made a Slashdot front page is pure greed (in terms of Slashdot whores) and means nothing whatsoever. Sorry I'm just an AC dope with no knowledge. Continue on, morons.
I'm pretty sure that DRJlaw's actual mistake is in thinking that the 20% quorum means that 20% of the votes have to be YES, when in reality only the majority of the quorum (anything over 10%) is required to have the proposal funded.