DAOstack ICO review (blockchain service)

Public crowdsale start date: May 8th

Website: https://daostack.io

ERC20 token (Genesis token; ticker GEN)

 

 

(in time of writing 5480 members; UPDATE now there is more than 24 400 members)

1. OVERVIEW

To describe this project in the first place, we need to know what DAO and dApps are. DAO stands for Decentralised Autonomous Organisation and dApps for Decentralised Applications. According to definition in DAOstack whitepaper “DAOs are open, self-organized collectives coordinated by economic incentives and self-executing code, cooperating around shared goals. Powered by the network effect, DAOs provide a revenue model and incentive for the production of open, shareable resources…“ . If that sounds a bit too much, basic video explanation what DAO is can be found here. Since dApps are relatively new term many experts are still searching to find a good explanation of it. In short, definition would be that decentralized applications (dApps) are applications that run on a P2P network of computers rather than a single computer. Also, they are a type of software program designed to exist on the Internet in a way that is not controlled by any single entity [1]. To be considered a dApp in the context of blockchain, following criteria must be met: a) completely open source; b) decentralized – uses a blockchain-like cryptographic technology; c) application must use a cryptographic token; d) algorithm – application must generate tokens. Few reasons in general are described in this video why dApps are of interest to global community.

After simple introduction to DAOs and dApps, now we can talk about project DAOstack. There is no better and again short explanation what DAOstack is than this one “DAOstack provides the foundational tools for the creation, operation and governance of DAOs, internally and externally within a broader ecosystem.” Team says it can be regarded as an analogue of WordPress for DAOs, it does for blockchain what WordPress has done for the web. The DAOstack is going to be a governance platform that can scale to meet the demands of the todays large organisations with allowing open source creators and individuals with relevant skills and resources to cooperate in producing dApps. The most important about DAOs is possibility for several people to contribute to one project and everything from ownership, contribution, trustworthiness etc. is encoded with smart contracts. On top of that, smart contracts will be adjustable and changeable when people involved in DAO agree upon that. The project core is made of following components-contracts shown in figure 1 and description of every aspect is detailed in whitepaper. In short, it consists of a ArcHives (DAOstack registries), base layer called the Arc (the framework on top of everything is built on), then the Arc.Js (API layer which makes it easy for front-end JavaScript developers to create collaborative applications on top of Arc), Alchemy (collaborative DApp developed internally by DAOstack, enabling anyone to create a new agency or DAO) and the DAOs (companies/individuals connected together in a decentralized block.

Figure 1. A ​sketch ​of ​the ​DAO ​stack components

2. GENERAL INFORMATION ABOUT ICO AND TOKEN

  • hard cap ETH equivalent of 30,000,000 U.S. dollars over all sales (40 mil GEN)
  • total supply 100 mil GEN tokens
    • after ICO supply is going to be 60 mil GEN tokens (additional 40 mil GEN tokens will be minted within Genesis DAO by the course of the years) [2]
      • 40 mil GEN offered for all sales
      • 10 mil GEN are allocated to current team
      • 10 mil GEN are allocated to DAOstack non-profit for future contributors
  • token price around the $0.9 per GEN (at public sale starting 8th of May) [2]
  • the purchase of GEN tokens is pegged to ETH which means if ETH goes up you will get more GEN token (if ETH goes up there is also possibility that hard cap of 30,000,000 U.S. dollars will be achieved earlier and sale is going to close)
  • GEN tokens shall be used as a currency in the module marketplace or if you wish to create a DAO through the Arc framework you need to stake tokens, and also ecosystem will accept fees (for example, promotion ​of ​content ​​boosting ​fee or in order to boost proposals in the waiting queue, agents will need to stake tokens etc…). In any case there is a lot of specific token purposes.

Figure 2. GEN Distribution

3. TEAM

Matan Field – CEO & Architect

  • has expertise in cryto projects development
    • Co-Founder of less known project La’Zooz open-source and decentralized collaborative transportation system, that uses cryptocurrency technology in order to establish, coordinate and grow its community of users, developers, and promoters alike
    • Co-Founder and CEO of Backfeed-a social operating system for decentralized organizations
  • Ph.D. in Theoretical and Mathematical Physics from Weizmann Institute of Science
  • working on blockchain technology since 2014
  • active on Twitter with 400 tweets and 2155 followers and also has few videos on youtube
  • AMA (Ask Me Anything) on youtube
  • overall has theoretical and applied crypto knowledge. Seems like a leader willing to accept harder part of the work due to frequent public explanation what DAOstack is and then again in the same time working on the code behind the project

Oren Sokolowsky – lead developer

  • co-founder & core team member of project La’Zooz (in common project with Matan Field)
  • team member of JAAK project which is also blockchain based
  • not active on other social media channels except LinkedIn
  • overall no significant project behind where we could say he proved himself but has a good theoretical base

Adam Levi – CTO

  • Ph.D. in Theoretical and Matematical Physics
  • not active on other social media channels except LinkedIn
  • AMA on youtube
  • overall no significant project behind where we could say he proved himself but has a good theoretical base

PROS:

a) code on GitHub its not a bold idea, Alchemy is already tested which means that other essential supporting layers also. Main net is launching in the very near future.

b) project is developing since 2016

c) basic operations across the DAOstack ecosystem, such as promoting proposals and the ones mentioned in overview will require the spending or holding of GEN à these actions will positively affect token price

d) limited competitors

e) above average partners like Gnosis and Endor

f) team is broadening as ICO date is approaching and in the future they have even more people in sight

CONS:

a) no roadmap

b) PARTNERS

  • Gnosis we were unable to find any web or Twitter announcement about partnership coming from Gnosis team
  • Endor we were unable to find any web or Twitter announcement about partnership coming from Endor team
  • Cultu.re in time of writing they had 320 Telegram members and 2 “not very crypto associated” twitts on Twitter (maybe they are in the very early stage of development)

c) Adam Levi and Oren Sokolowsky are probably good code writers but still they didn’t prove themselves. Also, team will probably need more reinforcements and project future will depend partially on them.

d) project is not so new and there was low hype for unknown reasons, until few weeks before ICO

 

4. COMPETITION

There is no direct competition, although idea about DAOs in a way they wanted to achieve is not a new thing. Most prominent competition which can be correlated to DAOstack is Aragon.

  • Aragon is pretty similar to DAOstack and they already released alpha in January 2018. Aragon is almost one year behind and there is no significant changes in token price and to point out, they are slow in development.

5. CONCLUSION

Partners like Gnosis, Sapien, Menlo, Endor could be very helpful to make some noise in the market. The most important part will be the code development and security behind it, because last time we saw what happened with infamous DAO where hacker breached and used the system.

Resources needed for the project to achieve, will probably be gathered without any problem due to recent hype going around DAOstack. As team described token will be needed if you want to participate in any aspect of using DAOstack platform. This means token´s value without any doubt will be increasing if project will have healthy development.

To conclude, project has a bright future with support coming from investors and developers community. If everything goes as planned this could be hugely profitable token. Sometimes there is a price drop after exchange listing due to bonuses given to early investors. So there is always an option to try your luck with first listing and buying tokens.

SOURCE:

[1] “What is a dApp? Decentralized Application on the Blockchain.” [Online]. Available: https://blockchainhub.net/decentralized-applications-dapps/. [Accessed: 08-Apr-2018].

[2] “TGE questions regarding $GEN #fromtelegram – DAOstack.” [Online]. Available: https://forum.daostack.io/t/tge-questions-regarding-gen-fromtelegram/128/4. [Accessed: 11-Apr-2018].