A Decentralized Autonomous Community (DAC) or sometimes referred to A Decentralized Autonomous Organization ( DAO ) is a community or organization that operates based on rules coded by computer programs called smart contracts. The EOS.IO Blockchain (and others) allows for these smart contracts as they provide a secure digital ledger that tells us who did what and when across the internet. I should say that Ethereum first introduced DAO in 2016 but due to a flaw in the code, a hacker was able to drain $50 million USD form the DAO the account. Ethereum scrapped the DOA, and hard forked creating Ethereum and Ethereum Classic (but that is another story). Anyway, Dan Larimer created EOS which acts as an operating system for a global computer. We all have computers so you can think of the blockchain as “computer hardware” and EOS as the “operating system” and Apps (applications) as dApps (decentralized Applications). Since DACs are built on smart contracts this allows new DACs to build on EOS much easier.
What is the legal status of DACs?
The legal status of DACs at the moment is not clear. DACs could be perceived as a corporation without legal status as a corporation. We will see how the various governments regulate DACs.
What are some examples of EOS DACs”
Well, the first example is eosDAC is a candidate EOS block producer. You can think of eosDAC is a community-owned Block Producer. But eosDAC is more than an EOS Block Producer. They were the first to build a DAC on EOS.IO but they also want to build and share the tools that enable DACs for everyone. If you haven’t voted for a Block Producer you should really consider voting for EOSDAC (eosdacserver).
Here is short video explaining eosDAC:
EDNA’s moto is “Human DNA belongs to Humans”. Your DNA does belong to governments or a megacorporation. They have a secure sequencing service to allow you to 100% anonymously and securely store your DNA on the Blockchain and earn passive profits with it should you so choose. EDNA operates using a token called EDNA. They can be exchanged for DNA Sequencing Services, but just owning these tokens also entitles you to membership, voting, participation and other rights within the EDNA Community.
Although is not a fully functioning DAC, their intention or plan is to become a DAC. KARMA is a social network that rewards people for doing good in the world. The reward is KARMA token. They have a devoted team who believe that you can make a difference in the world. Their dApp (release Q4 2018, in beta testing now) will change the way we interact with each other, making the world a better place.
EOS Poker is the first decentralized poker gaming platform on EOS.IO. It is provably fair and Blackjack is their first game, but they plan to have several more. EOSPOKER is owned by the DAC who hold POKER tokens. You can get POKER tokens by playing but they will also wlist on exchanges. Right now it is listed on the BTEX exchange. It is a Chinese site, but they will plan to list on other EOS exchanges soon. POKER token holders own the platform, both its profits and decisions. There is a fixed supply of 10 million POKER tokens and 80% of all profits will be distributed to the community that holds POKER tokens. There is a referral program where you will receive POKER tokens equal to half of you referral’s wager and 0.2% of their winnings in EOS . Please feel free to use my referral link but I have a feeling most people use 2 accounts and refer themselves.
So getting back to my title “The power of a Decentralized Autonomous Community (DAC)”.
As many of you know, yesterday and the previous day there were major issues with EOS CPU. CPU Bandwidth is measured as your average consumption in microseconds over the last 3 days. CPU bandwidth is temporarily consumed when you send an action or transaction but decreases over time returning to 0. The longer your transaction runs, the more CPU bandwidth it will consume. You can unstake at any time to reclaim your EOS tokens.
However a few days ago many users and dApp developers were at a standstill because of lack of CPU.
When the EOSPOKER dAPP became overwhelmed with CPU usage and the surge in price, the EOSPOKER developers kindly asked the community for their help to delegate some of their EOS to the EOSPOKER team’s CPU stake. There was some incentive (i.e. rewards in POKER tokens) to reward the community, but even before the the contract was made, and in less than a day the community (of less than 100 members at the time) had promised to delegate 20,000 EOS to the EOSPOKER team and by the 3rd day (time to unstake) the community had delegated over 50,000 EOS to the team. DappRadar put then in the top 10 that day but as of writing they have dropped to 16th place.
I feel this a great example of how much support a DAC can have on a dApp and it also shows that because you are part of the project it is in your best interest to make it succeed!
This is the best explanation of a DAC I have found on the internet: