DAO is abbreviation of Decentralized Autonomous Organization.
It is new business model to run investor-directed venture capital funds which has no traditional management structure, is stateless, and it is not bounded to any particular location.
Our investors can be sure that every DAO is legit and brings profit because each DAO proposal went through a long way of expertise.
First of all any proposed DAO is checked for spam and if it arouses suspicion like the proposal's owner is a joker or a swindler, this DAO is declined.
Next step, our most experienced angel investors meticulously look the proposed DAO and if they make positive decision the DAO goes to the final check - it must collect the start-up capital. The presence of start-up capital shows the trust of the experts and investors to the DAO project and minimizes the risks of lost.
Approved and started DAOs do not have continuous funding. To minimize probability of lost investment each DAO is funding by stages. Each stage has own proposal, timeline, and a calculation of necessary funds. When a previous stage is done and is approved the funding of next stage begins.
Smart contracts, which are embedded in the DAO software, make automatic reward payouts to investors. Those payments are performing without any human participation and cannot be altered or undone because all transactions are stored in block-chain.
All transactions with investor's tokens are recorded into the block-chain network, which works like a digital ledger - publicly available to all DAO investors. As the distributed block-chain network holds a valid copy of this digital ledger, the block-chain itself is able to certify DAO tokens ownership, providing mechanism that offers highest level of security.
Smart contracts introduced a radically improved investor's reward mechanism, by granting control of the collected funds to the platform itself, rather than DAO creators, thus enabling investors to gain funds based on project progress and success.
Once the start-up capital is collected, the DAO will then start operating according to its administration model and rules established in its smart contract (Charter of Organization).
DAO ownership tokens and smart contracts are secured by block-chain technology that the all token holders can see the smart contracts, changes and improvements. A smart contract can be altered by consent of all token holders, thus the control of the DAO remains in the hands of the owners.
Because block-chain is a distributed system recording and storing transactions, which are stored and distributed across all network participants, it provides a new model for storing records considered the owners of DAO tokens, smart contracts, and assets transactions. These block-chain based smart contracts (self-executed whole block of computer programs) are programmed to analyze stored transactions to automatically perform manual and costly processes.