Listened to the show. Glad that "the DAO" and Ethereum is getting attention in the media and helping spread the word.
Just the fact that over 3 million ETH has currently been invested in "The DAO", or close to $USD 30 million is newsworthy in itself!
How long will that 3 million Ethereum be locked? How can you get your Etheruem back after you invest in the DAO?
Maybe after the crowdsale is over but I'm not sure. I think you need to sell back your DAO tokens in exchange for Ethereum.
How do we get our Eth back from DAO tokens?
GriffGreen
. Technically if you invest at 1 eth per 100 tokens and split immediately after the 28 day creation period and before any other proposals are accepted, you'll be getting back a little more than you put in.. but you also won't be entitled to rewards from future proposals. If you split after the slock.it (or any other) proposal is accepted, you'll get back less than you put in, but will be entitled to future rewards from any proposals that passed before you split.
I know you know you were mistaken now, but I want to elaborate so that people don't think this is actually possible.
I am going to slam down a wall of text... I am sooooo Sorry!!! But this stuff is not simple and if you want to fully understand it, I want to give you that option!
TL;DR
After the Creation phase is over, the DAO will hold 1 ETH for every 100 DAO tokens. The extra ETH raised above this amount because of the higher prices during the last 1/2 of the Creation phase is sent to an account called extraBalance (to avoid your potential attack vector), this extraBalance will be added back into the DAO only after the DAO has spent this amount of ETH or more on Proposals, so that 100 DAO can never be backed by more than 1 ETH in the DAO.
Here is my normal Schpeal on splits for more information:
Ok so The DAO Creation phase will be 28 days long:
2 weeks: 1 ETH for 100 DAO
10 days: A daily increase of .05 ETH per day
4 days: 1.5 ETH for 100 DAO
Until the Creation phase is over you cannot trade tokens, the DAO cannot pass proposals and DAO token Holders cannot split the DAO....
After the Creation phase is over, the DAO will hold 1 ETH for every 100 DAO tokens. The extra ETH raised above this amount because of the higher prices during the last 1/2 of the Creation phase is sent to an account called extraBalance (to avoid a potential attack vector), this extraBalance will be added back into the DAO only after the DAO has spent this amount of ETH or more on Proposals, so that 100 DAO can never be backed by more than 1 ETH in the DAO.
DAO Token Holders can always sell DAO tokens on an exchange, and Bittrex and Gatecoin will be open for DAO token trading as soon as the Creation phase is complete. But we wanted to make sure that the DAO Token Holders are always in control of their fair portion of the ETH and Reward Tokens that the DAO holds at all times. We want the fully autonomous DAO to be made up of fully autonomous DAO Token Holders!
To do that we had to enable “Splits.” The way Splits work:
Any DAO Token Holder (DTH) can create a Proposal to request a new Curator. In the case of a private split they would name themselves as the new Curator (but this can also be done as a new open-to-the-public DAO Creation).
The DTH would vote for their own proposal.
They will call the function SplitDAO() and split The DAO.
Their old DAO tokens will be destroyed, the digital assets that the old DAO tokens represented will be moved to the user’s new personal DAO where they control 100% of the new DAO tokens to do with what they wish. (Including sending their ETH to an exchange if they desire).
I say digital assets because there is the ETH but also, if the ETH gets spent on proposals, then they are replaced by Reward tokens.. But reward tokens deserve their own question :stuck_out_tongue:
The point of This functionality is to save the DTH in the case of a bad Curator or some other kind of attack. It also allows groups of DTHs to split from the main DAO and accept proposals that were not able to be passed in the main DAO.
I do not expect splits to be used to actually Cash out of the DAO for trading purposes, it is much simpler just to trade the DAO tokens on an exchange. But in the case that DTHs see an oppertunity that they do or do not want to pursue, then they have the option to Split the DAO with their ETH and their Reward Tokens. They control these assets at all times.
So what this really means is that DAO tokens are effectively backed by ETH and Reward tokens :slight_smile:
So if you start with 100 DAO tokens, they are BACKED by 1 ETH at the end of the Creation phase. You control your DAO tokens so you can trade them to exchanges, or do what ever you want with them at any time, you will always hold 100 DAO tokens, there is no way for them to evaporate from your account unless you choose to split.
When a proposal is passed sending 20% of the DAO's ETH to the Proposal's Smart Contract, your 100 DAO tokens are now backed by 0.8 ETH and 0.2 Reward tokens (forgetting about the extra balance complication).
So the Value of DAO tokens as the value for anything is always in the Eye of the Beholder. but there is effectively a minimum value held because DAO tokens are backed by ETH so the holder can always Split the DAO to retrieve it.
But after that 20% proposal if you decide to do a "solo" Split with your 100 DAO tokens, you will burn your DAO tokens (effectively lowering the total supply) and receive newDAO tokens for your own personalNewDAO.
The newDAO tokens will be backed by the reward tokens and ETH that are held in the personalNewDAO, but you of course hold all of these tokens so you can rob your personalNewDAO of all the ETH that is in there.
The Reward Tokens cannot be transferred except by spliting. So now your personalNewDAO has 0.2 reward tokens in it and you have sent 0.8 ETH to your self but your newDAO tokens still have value because they are backed by 0.2 Reward tokens.... We will see what solutions the free market comes up with fof trading these newDAO tokens... but I hope that answers your question.
