A new decentralized autonomous organization (DAO) has made a $4bn bid to buy the Denver Broncos.
The BuyTheBroncosDAO is reminiscent of the ConstitutionDAO which raised $47m to buy a rare first edition copy of the US Constitution.
While the projects are not related, they share similarities, and some distinct differences that University of Cambridge mathematician and computer science PhD student Derek Sorensen says may make BuyTheBroncosDAO a success.
According to Sorensen, who is advising the project, it is different as it will enable participants to also assume ownership of the team, not unlike how some fan tokens powered by the blockchain try to garner interest in their offerings.
BuyTheBroncosDAO wants to create a unique structure where everyone who participates has “any legal rights to anything about it. You can vote on where we put it, but there’s no legal guarantee”, Sorensen said for CNBC.
The project is also planning to register as REI rather than an LLC, which should exempt it from certain US Securities and Exchange Commission regulation, according to Sorensen.
The project itself has origins similar to that of Dogecoin. It seems to have started as a joke, as one participant told CNBC.
However, BuyTheBroncosDAO knows that it would not be able to raise the entire sum in crypto. In fact, the idea is to collect 25% of the money necessary to play a winning bid and then team up with traditional financial players in order to fund the rest of the operation.
Sean O’Brien, a former Cisco employee who now works on the project, said the idea of having a fan-owned sports franchise is great, but ultimately that will not be the whole story.
O’Brien wants to demonstrate the potential of the DAO ecosystem, which should supposedly open peoples’ eyes to its potential and how these initiatives can impact the real world.
However, DAO is not without its downsides. Just like cryptocurrencies at the beginning, it lacks proper scrutiny and regulation, and investors are already losing money on it.
If you want to wait a little longer and see if DAOs are worth it, we recommend committing your crypto at casinos such as Bitcasino, FortuneJack and 1xBit for entertainment purposes only.