The DAO is now the biggest crowdfunded project of all time. In less than a month the organisation has a market cap of $140 million. So what is the DAO really? And why should you care? Simply put, the DAO is a self-running company. It has no directors, no managers and no employees — at least not in the conventional sense of the words. DAO stands for ‘Decentralised Autonomous Organisation’ and it’s powered by a crypto currency called Ethereum. To better understand how the DAO works requires a quick explanation of Ethereum. This is the future of trust..
Money is the second most important thing human beings have invented, after language. More than just a way of buying things, currency is a symbol of trust. Until now, that trust has relied on central authorities, like banks, for verification. We no longer need those monolithic entities thanks to cryptocurrencies like Bitcoin. Ethereum, like Bitcoin, is a cryptocurrency and, like other cryptocurrencies, Ethereum is built on a blockchain. What makes Ethereum different, however, is that it has been designed as a platform for ‘smart contracts’, allowing anyone to create a trust agreement without requiring middlemen.
Bitcoin was designed to be both a currency and asset. Its blockchain can also be used for other forms of transactions or contracts, but it isn’t easy to build out these applications yet. Ethereum, on the other hand, was designed for contracts from the get-go and makes it easier for developers to build applications accordingly.
Our priorities as a business and where we're taking Terawatt LED next
The original Bitcoin code was designed by Satoshi Nakamoto under MIT open source credentials. In 2008 Nakamoto outlined the idea behind Bitcoin in his White Paper, which scientifically described how the cryptocurrency would function.
Marketers create whitepapers to educate their audience about a particular issue, or explain and promote a particular methodology.A white paper is an authoritative report or guide that informs readers concisely about a complex issue and presents the issuing body's philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.
Participants will add funds to the DAO in the form of Terawatt tokens (LED ticker). All interested businesses and consumers, not just utility providers, can buy LED tokens and participate in the DAO. This will help increase the network effect (Metcalfe's Law). Now we have a growing decentralized fund as more token holders join.
High probability of making profits, to direct the funds via voting on community proposals, and to help drive global L.E.D. adoption
The Terawatt token supply will rapidly and exponentially decrease with a continuous coin burning algorithm. Terawatt will automatically use 50-75% of company profits earned from DAO entry/exit fees, profit taking fees (like an exchange), Carbon tax data storage fees, carbon credits, and also from affiliate L.E.D. sales commissions to buyback and burn (LED) Tokens. This is similar to the BNB token, but they only burn every quarter. We will burn continuously
This may or may not mathematically cause token value to greatly increase as we are decreasing supply, while also increasing demand through marketing and growing adoption. Ex: If a Utility company invests $10,000/month, in one year their account value has possibly increased 200% from $120,000 to $360,000. They could withdraw part, or all, of their account balance to provide subsidized LED’s to their customers as needed, or to fund other green initiatives, like solar, wind, energy star-rated materials. products, electric vehicles, etc. Businesses and token holders can use their DAO profits to buy L.E.D. bulbs which will reduce their utility bills, qualify them for government tax credits/rebates, and reduce greenhouse emissions. We will also offer a token incentive or discount for participants who verify that they used profits for buying/selling L.E.D.s or related technologies. Moreover, it acts like a decentralized insurance fund, with the Terawatt token that powers it also acting as a fast, private, secure monetary currency which can be accepted at businesses and utility providers globally. It will make sense for utilities and businesses to take payment in our tokens as it will allow them to add more tokens into the DAO, and potentially greatly increase their profits. With the supply being extremely more deflationary than FIAT, and even than most other cryptocurrencies, it will become highly attractive as a payment currency.
We may use a percentage of the ICO money to fund the DAO initially. We are actively pursuing partnerships with some of the largest utility companies, utility commissions, and Lighting manufacturers (such as GE and Philips) in the world, and they are open to trying out this model . Terawatt will offer them a free-trial basically, allowing the utility company to partake in the DAO and experience its benefits firsthand. This removes the risk from the utility providers, and businesses, and will help them realize the benefits of accepting the LED token as a payment currency.
With Ethereum gaining traction, the scene was set for a new kind of organisation. The DAO uses Ethereum smart contracts to power everything from its funding to how it pays people for the work they do. Like a traditional company, the DAO is built for profit. It is seeded via the sale of ‘DAO tokens’ during the crowdfunding period ending 28 May 2016. The tokens empower whoever holds them to vote on what the organisation will do. If we use familiar terms to describe the DAO, you could think of tokens as ‘company equity’ and token holders as ‘shareholders’. While not entirely accurate in conventional business terms, substituting those words when you read the rest of this article may be useful. What the company actually does is up to the token holders. New ideas are presented to the DAO in the form of proposals. Token holders then vote on proposals and, if approved, contractors will be allowed to compete for work on the resulting projects.”
With a basic understanding of what a DAO is and how it works, we can now get into more details on how the Terawatt DAO will function. We will build a DAO, and they will come . This is a decentralized autonomous organization that is essentially a bank/pool of funding allocation for power companies, all businesses, and their customers (business and residential), which they can tap to ensure that these L.E.D discounts can be offered/available 12 months out of the year instead of 3-6 months, or not at all in some cases. For businesses and everyday consumers, The DAO can help provide them with the funding needed to afford upgrading their existing lights to LEDs. So, this project does not entirely rely on utility company partnerships. Terawatt will act as both a funding bank, payment currency, and as an immutable verifiable data ledger. Think of it like an insurance fund, or a merry-go- round of appreciating money, that allows utility companies, businesses, and all people worldwide to help each other afford LEDs. This helps reduce everyone's electricity bills, helps the environment, increases light output, and further advances the federal and state initiatives that are pushing for 100% LED adoption anyway.
All interested businesses and consumers, not just utility providers, can buy LED tokens and participate in the DAO. This will help increase the network effect (Metcalfe's Law) Now we have a growing decentralized fund as more and more token holders join. We also aim to do this for GAS, and SOLAR, and WIND, Electric Vehicles, Etcetera. LEDs are just the beginning of the titan Terawatt will become. LEDs will be proof of concept and then it will snowball from there into these other sectors. Once utility companies experience the innumerable benefits of joining the DAO, they will happily pay to join, and other companies that don’t do this will experience F.O.M.O (fear of missing out).
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