Coincheck blog

View the latest news today for bitcoin market in Japan, cryptocurrency, new features, and campaign at Coincheck Blog.

DAOn the rabbit hole: Security & Law of The DAO

The DAO creation period has come to an end on the 28th of may 9:00am UTC time it has made history already by being the most well crowd-funded project of all time. We have Showed you how to buy and sell DAO and now it’s time to evaluate our investment (or lack of investment) and to go even further into our new found DAOism!

Screenshot 2016-06-01 at 11.48.54

It has been a bumpy ride for DAO, within 3 days from the release Security issues were raised, Legal concerns were made public, and solutions are also being thought of! The great thing about The DAO is that solutions seem to be taught up at an incredible pace, which comes to no surprise since we have some of the greatest minds in the Crypt community working on it!
There seems to be a lot of information and news going around regarding The DAO, so we decided to fill you in on the major events concerning The DAO in order to save you some time!


Screenshot 2016-06-01 at 11.49.03

There seem to be some Proposals so far. Some can be considered spam proposals and only one of them requires ETH to be sent from the The DAO to a wallet, which is Proposal #11 (“Curators, please hire somebody to fix the DAO code and allow more recipients”).
The most note-worthy proposal so far was made by one of the Curators (Proposal #5) and it has been the one with the most positive votes so far.
You can view all the proposals here:
Serious proposals:

Voting made easy:

There are also new ways to vote on proposals through a graphic interface rather than with the DAO code.
Use Myetherwallet to vote:

Turn Ethereum Wallet into a Mist Browser to vote:


Screenshot 2016-06-01 at 11.51.41

A Temporary Moratorium on The DAO has been called for by Dino Mark, Vlad Zamfir and Emin Gün Sirer.
“Moratorium: an authorized period of delay or waiting.”
The Temporary Moratorium is a proposal (Proposal #5) to The DAO. This proposal is being voted on and every single DAO holder can vote on it (Take some time to think about it and vote wisely). This Temporary Moratorium was proposed in order to adress certain security issues found by the team of curators while testing The DAO code and the official draft can be found here:
The Draft composed by the team points security issues out that can pose a potential threat to the voting and splitting process and it reveals how an attacker can exploit them to promote strategic votes rather than opinioned and sincere ones. Seven specific scenarios were found and described in the Draft
One of the biggest concern about this proposal seems to be the lack of timeframe for the Temporary Moratorium on voting and splitting.
One of the prospective contractors Toby Hoenisch has also decided to withdrawal his “DAO.PAY” proposal after security issues were allegedly “down-played” by Christoph and Lefteris from the team.
Read more:


Screenshot 2016-06-01 at 11.51.48

The DAO is a never before attempted project, in which individuals from all around the world can be considered partners with a mutual stake in said project. No actual person or entity is in charge of The DAO. As such, some legal questions have been raised about The DAO.
Since The DAO exists only inside the Ethereum Blockchain and does not comply with any financial or operational restraints imposed in any State interaction with the real world may be limited. The same aspect that seems to facilitate the creation of The DAO may also restrain its development.
Concerning any legal action against The DAO the matter is also unclear. Who would be held responsible? The Curators, contractors, creators or investors? The DAO can be seen, legally, as a general partnership or joint ventures, therefore the most probable answer would be the later. Proposals to determine the legal status of The DAO can also become a priority along with the proposal to review security issues.


Screenshot 2016-06-01 at 11.51.55

Another thing that seems to have disappointed investors to some extent is the price: The DAO tokens are currently being sold for less than the original creation price (0.01 eth) It’s hard to say why people would sell DAO for less than the actual creation price, but since the eth price has risen since the start of the creation, many investors are still happy with the results. Some have also suggested the possibility that this may be related to the recent bitcoin rise during this last week. Many investors see this as an opportunity to multiply their ETH since you can always get 0.01eth back for each DAO by splitting it.

The future is still unclear for this record-breaking project. Coincheck will continue to follow it’s development closely in order to keep you up to date with the latest guides, news and developments regarding The DAO.

Coincheck Cryptocurrency Exchange

By António Madeira

Coincheck Cryptocurrency Exchange