Nov'2013: Daniel Larimer, who created the concept, revisits its definition. I think the most obvious metric of identifying a DAC is that it must have its own block chain in which shares of the DAC are exchanged. Without equity there is no means by which the DAC can be ‘owned’ or through which profits from the DAC may be distributed. All corporations have equity and DACs are no different. A DAC must not depend upon any single individual, company or organization to have value... A DAC must not depend upon any legally binding contracts or laws such as copy right or patents.
Jan'2014: Imagine a corporation that engages in economic activity without guidance or direction from humans. Programmed with a mission statement—maximize profit for shareholders from the sale of widgets, for example—the corporation could own capital, enter contracts, and employ robots. People could even be hired for more creative tasks. Such an entity would live on the Internet, distributed across thousands or millions of nodes (stakeholders who host the DAC on their computer).
- Unlikely you could freeze code/rules up front, so still need Governance process for change management. Nomic Game?
Apr'2014: With Ethereum, one could code a constitution for a nongeographic country that people can choose to join, pay taxes to, receive benefits from and cast votes in — and whose rules they would then have to obey. One could design a transnational microlending program or a scheme for universal basic income or a new kind of credit score. In one online video two Ethereum pioneers demonstrate how to code a simple marriage contract. The world’s next social contracts, the successors to the Declaration of the Rights of Man and the U.S. Constitution (Virtual State), could be written in Ethereum’s programming language. What makes much of this possible is also perhaps the creepiest outgrowth of cryptocurrency 2.0: distributed autonomous organizations, or DAOs. Based on charters taking the form of code on a peer-to-peer network, these are entities that could automate many of the tasks of a conventional organization with varying levels of human input.