Tai Zen: Alright guys. This is Tai Zen again!
The DAOhub.org pre-sale, crowd sale, or whatever you want to call it, ICO is going on right now. I got my buddy JW here on the phone. Say hello JW!
JW: Hello everybody!
Tai Zen: JW and I were just discussing some stuff about the DAO presale tokens. I’ve been trying to get the Oracle of Austin, the Oracle of cryptocurrencies, Leonfu.com, my buddy Leon to come on and explain some stuff, but he’s been really busy so I haven’t had time to catch up with him. However, he did share a few things with me that he wanted me to share with you.
There are a couple of things that I misunderstand about and I want to clarify it right now. First of all, I made a mistake. I thought that you can invest in Slock. It with Bitcoins or any type of coins, which I think we all did. Nonetheless, Leon knew the whole time that you can only invest in it with Ethers and he thought that I understood that too.
I thought it is just like any other ICOs. You can buy it with Bitcoins. You go through ShapeShift and convert your Dogecoins, Nextcoins, Litecoins or Bitcoin into the ICO for Slock.It. What happened now is I’m finding out that you can only invest in Slock. It via the DAOhub.
You should look at the DAO as a company, a corporation or a venture capitalist. What they’re doing is they’re raising money just like any venture capitalists do. They’re going to raise money from all of us, then take that money and invest it into different projects. One of those projects is Slock.It.
According to Leon, there are 5 other projects that they’re going to be investing money into. The way that they determine which project to invest in is that they have over a dozen what they call curators. These are human curators and they curate. They pretty much review the submissions and the proposals for a project that’s requesting money.
For example, after the DAO token sale is over with the Slock. It, the team is going to resubmit a proposal to the DAO. However, before it gets to the DAO and it gets voted on by the token holders like you, I and other listeners who have bought into the DAO token, it will be curated by a team. That team includes Vitalik Buterin, the inventor of Ether and most of the guys on the Ethereum Foundation, who are probably the core developers and all the coders working on the Ethereum project.
That team is going to look at the proposal that Slock. It submits and proposals than any other group or teams submit to get funding, then they’ll decide on it. It’s not spam, right? It’s a legitimate proposal. After that, they’re going to put that out there on the DAO for people like you and I, the investors to vote on it if we want to give them money to work on that project.
Now, obviously, this Slock. Its team is also the former guys that worked on the Ethereum, so it would be obvious that we would vote for them to get the funding that they need from the DAO so that they can work on the Slock. It projects the smart lock project. Does that make sense?
I thought that it was just the DAO which is going to fund the Slock. It team only, but it’s not. They’re going to fund any proposals that are submitted to them. Then, the human curators are going to determine if it’s a legitimate proposal or not, and then they’re going to put it on the table for the all the DAO token holders to review and to vote on it.
JW: Do we know how much this Slock.It team wants from the DAO?
Tai Zen: We don’t know. It’s just like any other venture capitalist. If they raise money and they decide that they don’t have enough, they can always come back and do a second round of fundraising as they do right now. They can keep doing a third round and things like that. It’s not just one time. I don’t believe that it’s just one-time fundraising.
Like any other venture capitalist, the people that get in early or the one that’s going to get the most shares or the most voting, they’re going to be more profitable.
JW: Basically, the DAO is going to be like a venture capital firms that we talked about and it’s just going to take a piece of Slock.It from every sale.
Tai Zen: Yeah, whatever Slock. It makes from the sale of its products or services, I think that the estimated number right now is that they’ll take 1% of the revenue. I don’t know if it’s 1% of the net profit or gross profit or gross sales, but it’s 1% and then they’re going to take that. They’re going to split it among all the token holders in the DAOhub so I’m just going to throw some numbers out there so that one can have an idea.
JW: I have another question for you. Hold that thought because now is a business question for you. If Slock. It is going to borrow money from the DAO or basically get free money from the DAO to start their business, can they go out and borrow money from banks like other private corporations or is it just going to be totally from the DAO?
Tai Zen: I don’t see anything that’s preventing them from raising money from other sources besides the DAO, but here’s the thing. They’re the team that did this Slock. It that and are also part of the team that created the DAO in the first place. The reason why they’re doing that is they can avoid all the…. Here’s the thing. In America, if you request funding from investors, you have to go through a bunch of legal. I don’t know what all the legal stuff is, but you have to go through a bunch of legal nonsense in America and in the Western countries. To get the file with the SEC, you have to do all these other stuff such as disclosures. It’s a lengthy process and it’s not easy. You have to have a bunch of legal attorneys and stuff involved to get to raise the money.
The reason why they’re doing it in the form of tokens is tokens are not shares of a company. Because it’s an autonomous organization that lives on top of the Ethereum blockchain, there are no humans involved in it other than the curators. Therefore, what they’re doing is avoiding a lot of legal processes. It allows people from all over the world to participate in fundraising.
You and I both know about the accredited investor in America where you and I would not be able to invest into it if they did this like the regular route the business around in America. It will require both of us to have a million USD net worth and then it would require that we have an income of $250,000 or more in a year before we’re allowed to invest into it.
By doing it on the DAO, which is a decentralized autonomous organization, they don’t have to deal with any of that because they’re not issuing shares. They’re just issuing tokens.
JW: Yeah, like a second Renaissance.
Tai Zen: By doing that, they allow more people to be involved in their fundraising. If you’re asking me if they can go raise money from the private sector, I’m sure that they can raise. However, it would create a lot of problems because they would have to go through all that legal processes and paperwork to get to have the ability to raise money from the public like that. Instead of that, they are doing it on the blockchain, so they don’t have to go through all of those procedures.
JW: The DAO could actually go out and do second funding that we talked about, then raise more money and invest in more organizations like Slock. It to become a multitrillion-dollar company.
Tai Zen: Exactly. You know how Marc Andreessen has his own VC firm. This is the same thing. They said it’s done on the blockchain. It’s done with everyone involved. Let’s say that you live in a village in Africa, and all you make is $10 a month. Let’s say that somebody in America makes $10,000 or $100,000 a month in income.
It doesn’t matter because the guy in Africa that only has $10, as long as he has a cell phone, computer access, and internet access, he can participate in this venture capitalism.
He can participate in this. If Slock. It does well, let’s say Slock. It makes a $100 million a year in selling their smart locks, 1% of that is going to go to the DAO so that’s $1 million. That 1% goes to the DAO is going to be split it up proportionally according to how much money you put in.
Let’s say there are 10,000 people that bought into the DAOhub token sale and let’s say that you bought enough to represent 1% of the entire token sale, and they raised $15 million already and you put in…
JW: …almost $19 million.
Tai Zen: Let’s just went up to $20 million just so the math is easy for me to do on the phone here. Let’s say that they raise $20 million and you put in 10% of that, which means $2 million. When that fund gets distributed, you get 10% of that. I mean you get that proportion of it. Does that make sense?
JW: Yep it does.
Tai Zen: Basically you can think of that 1% as the interest that they have to pay to the DAO for borrowing money from the DAO. What is fascinating to me because everyone in the world can participate in it. They don’t have that limit of you having to be worth $1 million networks and you have to make $250000 a year in income to do it.
JW: Another thing is the company also grows and become something bigger one day. These companies like Morgan Stanley and Goldman Sachs and even the smaller guys can have these deals. It will be a similar case for DAO investors.
Tai Zen: Exactly. Remember that the goal of the entire Ethereum team is to create the highways or the platform. They’re creating a platform so that everybody can participate in it. They’re basically building the highways and let everybody build the cars to drive on top of it. They’re basically building the interstate highways and they want everybody to come to build houses, businesses, commercial buildings, streetlights, and all that stuff on top of their highway.
The Ethereum network already allows people to come here and build decentralized applications on top of it. Now what they’re doing with the DAO Hub is that in order to build those decentralize applications, there has to be a way to raise money to build it, which means to pay for the developers, the coders, the salespeople, the marketing team, the promotion team to market those decentralized apps.
What they’re doing now is building the DAOhub which is an autonomous software. If you watch The Terminator, this would be the equivalent of Skynet. They’re building Skynet to be in charge of the venture capitalists stuff.
Now, it’s just a software code, so why that is important. I believe that’s important because of this. If you go to all the venture capitalist firms right now in Silicon Valley or out in San Francisco, and you won’t invest into it, let’s just say that you do have $1 million-dollar network and you do make $250,000 a year, they can say no to you.
JW: Right. They will laugh at you.
Tai Zen: Yeah, they will laugh at you. They’ll say no to you. Let’s just say that the bank that took Facebook public or Google public. You’re a new credit investor and you go in, then say “I want to buy some early shares of a Facebook or Google”. They’re just going to laugh at you. They’re going to hook up their own buddies first.
Why wouldn’t they do that? I would do the same thing to like if I was the one that was doing the IPO for Facebook or Google, and you’re my friend. I’m going to hook you up. I’m going to give you the opportunity to invest in early before some dudes in China or somewhere that I don’t know, right?
JW: As would I and everybody else.
Tai Zen: All the listeners they would do the same thing too. They’re going to hook up their friends and family first before they hook up anybody else outside if there are any shares left.
However, with the DAO, it eliminates all that bullshit because here are the parameters. You get 100 DAO tokens for every 1 Ether that you send in, right? Because of that, everyone in the world can participate now. It doesn’t matter if you’re a millionaire. It doesn’t matter if you’re a low-income, high income or a middle-class worker. Everybody has an equal opportunity to invest in this project.
JW: There’s no deceiving. There’s no cheating.
Tai Zen: It’s public and transparent so that everyone can see what the proposals are, what’s being invested in.
Let’s just say that a team submits a porno proposal that once they want to build some kind of decentralized porno app, and you’re against it. You don’t want the money that you put into the DAO to be invested into the porno application because you’re a Christian, a Muslim or a Buddhist, for whatever reasons that you have, but you don’t want to invest into that kind of project. You can vote no to it.
In case of a regular venture capitalist firm, if you’ve given your money to invest, they can invest in whatever they want. It may be something that’s against what you believe in. They might invest in a factory that manufactures those bombs dropped on innocent people in the Middle East, in other countries or something you might be completely against it.
JW: Right. Even with this, you have a small vote.
Tai Zen: It’s a small vote but it’s a legitimate vote. Let’s say that we invest in the DAO and we represent a very small percentage of it, but check this out okay. Check!
You and I can get on YouTube like we are right now and we tell them “Hey look, these curators just submitted a proposal to build this a decentralized porno app or whatever that cannot be censored by the countries.” Let’s just say you and I don’t believe in it, so we can get on YouTube and make a video to speak out against it, then try to persuade the other DAO token holders to vote against it.
We can actually do that even if we have is just a small share. Let’s say we own 100 tokens of the DAO. We can still do have the ability to get on stage and scream at the top of our lungs “Not to vote for this proposal.” We will share an equal right just like everybody else.
Another example is let’s just say that nobody knows who you are. You haven’t put your face on video or nothing. If you want to speak out against building this decentralized porno app, you can actually just make a recording of your voice, submit it and put it up on YouTube so that you never have to reveal yourself. As you can see, you can be anonymous and speak out against something that you don’t believe in and still have a voice in the vote.
In case of the regular venture capitalist firms right now, if you want to speak out against something, you have to reveal your face, you have to present yourself and then now people are going to see who you are and they may not like doing business with you in the future.
JW: I actually like this a business point of view where it’s definitely an old boys network out there. It takes care of your friends as we did. In this system, it creates a level playing field so that we can freely live and die at our own stake.
Tai Zen: Yeah, exactly. I made several thousand percent of profits from investing in Ethereum, but I took that risk. I was willing to take that risk. I don’t need no government telling me that I’m not allowed to take that risk because I don’t make $250,000 a year or because I don’t have a million-dollar network. Don’t tell me what to do.
I know what to do with my own money. I’m the one who earned it. I’m not the one that’s a trillion dollars in government debt telling somebody else how to make money.
US government has trillions of dollars in debt and they’re creating trillions of dollars in debt every month or every year. Now, they’re going to turn around tell me how to invest my money and how to make money? Well, they don’t even know how to manage money themselves.
They should be watching my YouTube channel and listening to me and the oracle of cryptocurrency Leonfu.com, and maybe they’ll get out of debt. Because of that, it creates a level playing field.
If you ever read that a famous book out there and it’s called with something flat. I forget what it is. The title of the book is something flat and talks about how the world has a level playing field now.
Its content is thanks to the internet, computers, and technology, airplanes and things to travel and move around it, the world is now a level playing field, but not stacked in favor of the upper class, the royalty, which I call the 3 R’s: the rich, the royalty and the religious. No more. It’s bringing things back down to Main Street where 99% of us are living
It’s not just the Ethereum blockchain or the Ethereum network, but the Bitcoin blockchain or any blockchain out there, the entire cryptocurrency market. Therefore, I and Leonfu.com dedicated ourselves to spreading the word about cryptocurrencies for just one simple reason: the level playing field for everyone.
It’s the first time in human history where we have been through wars, in which we dropped bombs on innocent people, shot innocent people around the world to level the playing field, to create equality. Then, Satoshi Nakamoto who created this blockchain technology, this Bitcoin technology.
Both Leon and I have always thought that it needs to be changed in the government, in society, because we never thought that a technology would come along and level the playing field for the little guys like us on Main Street.
That’s why it’s a revolutionary. That’s why I scream at the top of my lungs to everybody about cryptocurrencies because it’s the first time you don’t need to change the government, but the technology itself is going to do the change for us.
I got a little sidetrack there because this call was supposed to give information about the DAO Hub. Do you have any other questions about the DAO?
JW: No I’m sitting in front of my customer right now.
Tai Zen: Okay man. Thanks for listening to this, guys. If you guys have any questions, comments or suggestions for future videos or future phone calls, just leave it in the comments section below.
Jeff gets back to his client and I have to run back and take care of my clients, too.
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