This article was first published on Stories by Qtum on Medium
In an already depressed market in the summer of 2016, the DAO seemed like the beacon of hope that the blockchain community needed. A decentralized fund made sense for all those striving to decentralize finance. It was a logical step, and some of the industry all-stars were behind it. The hype was immense, the FOMO ensued, and anyone who said it wasn’t going to work was brushed off to the sidelines.
Not long after the historic crowdsale, which is still the most raised in Ethereum ever at 11,538,165 ether, it all seemed to fall apart. Numerous researchers had found exploits in the code, and someone took advantage before it could be addressed siphoning off more than $50 million (value at the time) of the ether away from the fund. People who were once praising that “code is law,” had radically changed their perspectives in less than a month since they found out the code or “law” was broken.
Some stuck to the mantra, and it split the community into two opposing camps. One favored immutability, stating the code worked as written, while the other favored salvaging the project, noting it would harm everyone since a substantial sum of ether was now in the hands of a malicious hacker and how that could be detrimental to the Ethereum protocol when they switched to a proof-of-stake consensus mechanism. It seemed that the marketing copy that filled the Ethereum.org website had taken the worst ironic twist.
Build unstoppable applications
Design and issue your own cryptocurrency
Kickstart a project with a trustless crowdsale
Create a Democratic Autonomous Organization
This was the playbook. The slock.it team, who took the lead on the DAO, built an unstoppable application, issued their own cryptocurrency, launched a crowdsale, and created a decentralized autonomous organization. But it wasn’t so ...
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