Ethereum (ETH) Users to Fund Startups via DAO-Like Instrument: Bloomberg

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Thu, 06/11/2020 - 14:45
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Vladislav Sopov
Bloomberg, a top-notch financial media company has revealed a concept for funding startups with Ethereum (ETH) and a Limited Liability Autonomous Organization, or LAO
Ethereum (ETH) Users to Fund Startups via DAO-Like Instrument: Bloomberg
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Matthew Leising of Bloomberg Crypto published an article about the new Ether-based investment vehicle, the LAO or Limited Liability Autonomous Organization.

DAO 2.0?

The analyst highlights that this way of fundraising has some limitations that were not common for DAOs (decentralized autonomous organizations) of the blessed era of 2016-2017. For instance, participation in the LAO-powered investment rounds is limited, as is the amount of Ether one holder can invest.

Bloomberg introduces the LAO
Image via Twitter

The LAO has already managed to raise $878,000 and funded its first startup. This is the Ethereum (ETH) mixer Tornado Cash, a privacy-focused instrument designed to enhance the level of anonymity in Ethereum (ETH) transactions. The Tornado Cash team received 244 Ether, worth about $59,000.

According to Aaron Wright, a co-founder of Open Law, the firm behind the initial design and codebase of the LAO, the participants within this community interact like partners. Each of them can contribute 120 ETH maximum.

Then, startup representatives pitch their products to the LAO investors. At press time, LAO has received 42 proposals for valuation and fundraising.

Reinventing the ideology of decentralization

Mr. Wright outlines that the LAO is much more mature than its ultimately decentralized predecessor. Great progress was made in terms of compliance with strict U.S. legal requirements. 

Now, every LAO transaction is tied to legal documents. Also, the ecosystem carries out thorough 'know-your-customer' and 'anti-money-laundering' checks. The level of security within LAO also can't be compared to that of DAO.

One percent of the LAO is owned by Christoph Jentzsch, who developed a codebase for the DAO four years ago. Mr. Jentzsch believes that the idea of limited liability is definitely what DAO missed.

At the same time, every participant of the LAO has a small amount of Ethereum (ETH) at stake, so, the interest in vetting the project is significantly smaller than it was with the DAO, Mr. Jentzsch admits.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)