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In this series I’ll be explaining what the DAO hack is, how it worked, what happened to the money, and the results of the hack. This is part 1 where I’ll explain what the DAO was.

# What is a DAO?

DAO stands for Decentralized Autonomous Organization. A Decentralized Autonomous Organization basically is an organization on the blockchain where people can own shares and vote on proposals, fairly similar to normal stocks. Also, shareholders get a part of the profits of the DAO.

# The DAO

The DAO code was created by Christoph Jentzsch and was open-sourced on Github. It was launched on the Ethereum blockchain on block 1428757 with a tokensale to fund the organization.

The tokensale was wildly successful, finishing with a value of $150 million USD inside the organization. 

That was almost 15% of all Ether in existence at that point, holding about 11 MILLION ether.

That was when it all went very, very wrong...

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