Author Topic: How do you prevent fraud within DACs?  (Read 4525 times)

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Offline renkcub

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I've been very excited about PTS from the beginning last year, but took some time away from the Alt market.
I met some of the team in person in Las Vegas Bitcoin conference last December and came away feeling very good about future of PTS.

However, I have a simple, but important concern I was not able to resolve with a few searches around the forum.

I've seen it happen dozens or even hundreds of times now in the bitcoin ecosystem (just look at Bitfunder, or any asset exchange) - most of the "listings" turn out to be scams or fraudulently run. All BTC are somehow lost or founder disappears.

I've seen some GDoc attempts at accounting for PTS expenditures, but what really is to prevent a "DAC" founder from pulling an Enron or running with the AGS funding?

I will say that the best and sole defense I've really seen against this (since there is no auditing in the bitcoin world) is to only create DACs for 100% decentralized businesses that are open-source (someone else can "right the ship") and pretty much run themselves, and require minimal "centralized" management towards development etc.. If this is the only way DAC funds will be used, I've answered my own question.

Examples would be centralized betting, poker, asset exchange, coin exchange, file sales (music, documents) etc.

« Last Edit: July 03, 2014, 04:28:12 pm by renkcub »