DAO

• DAO - Decentralized Autonomous Organization
• Governance implemented in Ethereum smart contracts. Code is Law, etc
• Own token: DAO
• Crowdfunding in June 2016: $150 million
• Vulnerability in the split function: time-of-check/time-of-use vs recursive calls
  • Anyone can propose to create a child DAO
  • Contract first retrieves Ether from main DAO, then checks against proponent balance
  • Recursive call allows this to be nested/magnified
  • Mid June 2016: $60 million worth in rogue child DAO
  • Build in 48 day period before funds can be transferred out
• Heated discussion led to hard fork of the entire Ethereum Blockchain

Decentralized autonomous organizations (DAOs) | ethereum.org