Bringing the DAO to Life
Let us turn to the terms by which users will bring The DAO to life and engage in its future. Users become DAO Token Holders by fueling The DAO with ETH during its Creation Phase. When The DAO receives ETH, new DAO tokens are created in that moment. Each DAO Token Holder is granted voting rights and complete control over The DAO's digtal assets (ETH to begin with) proportional to the amount of DAO tokens they hold.
Fig.1 DAO Token Holders own 100% of the DAO and are fully in control
The DAO’s address: 0xbb9bc244d798123fde783fcc1c72d3bb8c189413
The DAO’s tokens:
- Allow the holder to vote on any expenditure The DAO could make
- Are fully transferable. They can be traded peer-to-peer or on an exchange
- Represent a relative portion of The DAO's crypto assets at any given time
Start Date: The DAO's Creation phase began on April 30th at 10:00 UTC.
Duration: 28 days.
Conversion Schedule:
- For the first 14 days: 100 DAO tokens (Ð) for 1 ETH (Ξ)
- For the 10 subsequent days: linear increase
- For the last 4 days: constant 100 DAO tokens (Ð) for 1.5 ETH (Ξ)
Fig.2 DAO Creation conversion over time
Total # of tokens created: There is not a fixed number of DAO tokens, they are created in any volume by fueling the The DAO with ETH. The total volume of DAO tokens created defines the total volume of DAO tokens in circulation. For example, if 2,000,000 ETH are sent to the DAO during the Creation Phase, then there will be 200,000,000 tokens created, no more, no less. There is no upper limit on how many tokens can be created during the Creation Phase.
Growth rate model: The model is deflationary (see "Special Characteristics" section below).
Premine/contributor pool: None. The only DAO tokens in circulation will be the ones created during The DAO Creation Phase.
Total tokens created over time: No further DAO tokens are created over time through any automated means. There is no 'mining' involved in The DAO as the security of its token is already guaranteed by the security of the underlying Ethereum network.
Exchanges: Both Gatecoin and Bittrex are planning to support the trading of DAO Token as early as the end of the DAO Token Creation.
Minimum Creation per transaction: A user may create any amount of DAO tokens during the Creation Phase, and DAO tokens are divisible just like ETH. 1 wei creates 1x10^-16 (0.0000000000000001) DAO tokens.
Markets: Tokens will be tradable peer-to-peer and on exchanges starting at the end of The DAO Creation Phase.
Minimum token created: 5,000,000 DAO tokens.
Special Characteristics of the DAO tokens
DAO tokens are not just another Digital Currency. In addition to the properties described above, they also provide full control to the DAO Token Holders over a portion of ETH in The DAO:
- Any DAO Token Holder can - at anytime - submit a Proposal to request the ETH they are entitled to, proportionally to the number of DAO tokens they hold.
- At any time, the DAO Token Holder may retrieve their proportional amount of ETH not already committed to a Proposal.
- DAO Token Holders maintain their right to receive the rewards from The DAO even if they choose to leave The DAO.
The last two points relate to the DAO Token Holder using the Ethereum Wallet to 'burn' their DAO tokens while retrieving their portion of unspent ETH as part of a process called 'a split.’ This offers both security and a deflationary model.
The DAO implements the standard DAO framework to the letter. For further information, please refer to the DAO Whitepaper.
Ref https://daohub.org/creation.html
