Kimbal Musk, the brother of Tesla Inc TSLA Elon Musk, launched a decentralized autonomous organization (DAO) last year. However, he doesn’t believe that all organizations can operate on the same model.
What Happened: In a recent interview with CoinDesk, Kimbal Musk shed light on how his cryptocurrency project Big Green DAO aims to decentralize philanthropy.
See Also: WHAT IS A DAO?
A DAO is a blockchain-based organization that is governed by code instead of individuals. Users can donate as little as one cent to be part of the Big Green DAO community but must donate at least 1 Ethereum ETH/USD, worth around $1,800 at the time of writing, to participate in voting.
The Big Green DAO puts grant-making authority back in the hands of the donors and non-profits because there is less money that needs to go towards personnel who provide grants.
“With our DAO, we have a 5% overhead allowance. So you’re starting with 95% of the money versus 65% of the money. Already, out of the gate, you have less headache for the nonprofits,” said Kimbal Musk.
Kimbal Musk believes that the applications of decentralized governance can be extended across a variety of industries, including police reform. However, in his view, one company that wouldn’t be fit for DAO type model is Tesla.
“Like, I would never run Tesla as a DAO. That’s just not appropriate because you're managing a supply chain,” he said.
“You can't decentralize that. You cannot run that as a DAO.”
Price Action: According to data from Benzinga Pro, Tesla shares traded 1.06% higher during the after-market session.
Photo courtesy: Wikiupdate1019 on Wikimedia
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