What is DigixDAO fighting for?
I found a very interesting picture on the web today that explains where VC money comes from.
Is there any intrinsic reason to use a formal financing structure to engage in investments, especially when Ethereum is around?
The majority of the hardworking population earning average wages for a living are so far up on this chart and can seldom ever directly invest in companies, because we have several financial institutions inserting themselves in the process.
Few people really know it, but for every dollar that I keep with my bank or 401k in a fractional reserve banking system, creates a few more dollars for them to invest in projects that are worthy, without me even knowing it or having a say in it. (Heard of the recent push for a cashless society? It is not for your convenience, nor to fight against the bogey man, but for the bank to better leverage and boost its working capital.) Why is this being accepted as the norm?
This, in our opinion, concentrates wealth and financial power in very unsustainable and unequal ways, and the saying that ‘the rich gets richer’ rings ever more true currently. The incentives are just misaligned between the investors and the users of the product.
There is always a big disconnect between the underlying businesses that are funded and the source of the investment money from these institutions. In short, a person on main street seldom has any inkling as to how any of his money is being put to work in a financial institution.
The current structure in finance does not allow for active financial inclusion of the masses. That is a problem and it is coming to a point where even a middle class, white collared worker may not even be wealthy enough to be eligible for a bank account and be able to participate in bright ideas to make their money work for them.
A blockchain future could empower the masses again. And that is partly what we are advocating for at Digix with DigixDAO.
At DigixDAO, WYSIWYG. There is no need for lengthy disclaimers about how it works, and how fees are disbursed, because the entire code base and repository of its smart contracts will be open sourced and publicly verifiable at the crowdsale. Everything about it remains fully automated and self running. We hope you will join us in our push for greater financial inclusion and investment transparency.