SwiftDao: Fraud Resistant Blockchain Governance

Blockchain project failure rates hover around 92% with an average lifetime of 1.22 years. In many cases, managers take investor’s money and leave a trail of abandonware behind. Crowdfunded projects stealing money from small investors are the most tragic, but the high rate of failure has scared away institutional investment which reached new lows in 2019. A new solution is needed. Enter SwiftDao, a new standard for building fraud resistant blockchain governance.
Unlike other decentralized autonomous organizations (Daos), SwiftDaos are structured as investment clubs. In an investment club, each member is required to be actively involved in the decision making for the allocation of capital. Shares in an investment club are not considered securities by the SEC. Since each investor is also a manager, there is no expectation of profit from the effort of others. The Howey test does not apply.
SwiftDaos also solve the lemon problem in the blockchain space. Investors have difficulty telling the difference between honest managers and fraudulent ones. Many investors accordingly have exited the space, leaving behind only fraudulent projects recruiting the vulnerable.
“There’s shortcoming with a lot of existing [governance] constructions,” observed Vitalk Buterin, founder of Ethereum at the Ethereal Summit in 2019. “Projects [are] having ICOs where people just send them the money and then […] the CEO disappears and goes off to Indonesia or wherever. […] There’s a lot of concerns with fraud in the ICO space.”
ICO space fraud has attracted the attention of the SEC which has begun prosecuting ICO creators. Unfortunately, many good projects, such as Telegram, have been caught in the action. Unlike other blockchain projects, SwiftDaos are structured as investment clubs. In an investment club, each member is required to be actively involved in the decision making for the allocation of capital. Shares in an investment club are not considered securities by the SEC. Since each investor is also a manager, there is no expectation of profit from the effort of others. The Howey test does not apply.
Blockchain technology has already revolutionized the financial world, but it has had its fair share of growing pains. Without better governance structures, the original vision of the 1980’s cypherpunks for a decentralized future seems doomed to failure. Today a battle is being fought between the decentralized technologies of the future and those who think centralized command and control is ideal. While the lessons of the 20th century indicate decentralization has the force of history behind it, without effort by technologists and capitalists a freer future may not be possible.
While SwiftDaos are still in development, visitors to https://SwiftDao.com can register for the early access Beta.

SwiftDao
20605 Soledad Canyon Rd #411
Santa Clarita, CA 91351

SwiftDaos are Investment club Daos for honest blockchain projects. SwiftDaos are built with three main principles in mind.

Fraud Resistance
Fraud resistance is baked into the core of every SwiftDao. With over 95% of blockchain projects failing and project managers missappropriating funds, all blockchain investors take caution.
The Investment Club structure for SwiftDao makes every investor into a manager, solving the principal-agent problem. You can trust your investment is in safe hands - your own.

Capital Growth
Standardization is the secret ingredient making SwiftDaos tick. With every blockchain project setting its own metrics, picking winners has been more of a gamble than a science.
Standardized financial reports published monthly make it easy to exactly compare the performace of SwiftDaos. Grow your capital with investment choices powered by knowledge.

Reduced Overhead
Market based economies always beat planned ones. Yet most firms are centralized. Transactional costs associated with markets prevent efficient allocation of resources, creating firms.
SwiftDaos allow members to cooperate with almost no costs. Contractors are hired directly by the SwiftDao without any middle management, HR department, or any administers.

This release was published on openPR.