The SEC warnings on DAO and ICO tokens have produced relief in the cryptocurrency industry, Ethereum (ETH) staying steady. As a report and accompanying press release, Tuesday stated that DAO tokens “were securities,” those hoping for clarity on the status of ICOs found that securities laws “may” apply to them. “As discussed in the Report, virtual coins or tokens may be securities and subject to the federal securities laws,” the SEC wrote in the release. The sheer number of ICOs and associated capital they have raised in recent months has led to speculation regulators would soon step in and disrupt …

Bitcoin and many other cryptocurrencies functioning off Blockchain distributed ledger technology operate in an open-source environment without centralized ownership or command structure. Under this model, only miners, those who mint new coins and process network transactions, receive funding directly from the cryptocurrency itself in the form of the block reward, or all new coins created. Dash, a cryptocurrency emphasizing mass adoption and usability, breaks from this model by offering only 45 percent of the block reward to miners and reserving 10 percent of new coins minted to fund development and other projects. Community projects Reddit user Tigerix, when contrasting the …

Backfeed, an open-source startup that develops a social operating system for decentralized organizations, suggests possible solutions for DAO problems. Julian Feder of Backfeed writes: “We felt about DAO’s the same way normal people feel about unicorns and UFO’s, and at last, contact is established, disclosure may begin.” DAO’s potential failures Backfeed is a young organization that has been working resiliently on developing effective models of conducting the Distributed Autonomous Organization. They have put a lot of work into proving to the whole world that a decentralized organization can be just as agile, just as efficient and profitable as the traditional …