Sports Card DAO

[BobC]

Was just reading a story online how another group is supposedly trying to create a Blockbuster DAO now, and how if they are successful, some feel they will be able to eventually take out Netfix.

This DAO concept sounds like something the government will eventually come back at. Forming any group for investing like this should require some form of legal entity election (partnership, LLC, corporation) it seems, and these "tokens" sound like a type of substitute for, but similar to, owning shares of stock or partnership units in the formal, traditional entries. And in the case of a DAO formed to invest in cards, along with questions that have already been asked about who will make actual buy/sell decisions, or physically hold the cards, what about what the tax treatment is and how it is handled and reported by the DAO and the "token" owners if a card bought by the DAO is subsequently sold. Or what is the tax treatment and how is it handled and reported if a "token" owner decides they want out of the DAO and decides to sell their "tokens" to someone else, or will they even be allowed to do that?

I would most definitely want to completely review and read through every page of all documents related to the formation and all ongoing operational aspects of any DAO I was even thinking about getting into. I also wonder if there couldn't be a lot of additional, ongoing costs and fees such an investing vehicle will create for the owners. And another curious question(s) I'd have is if everyone truly has an equal say on things based on what they paid in to the DAO, or do maybe some who formed and set up the DAO get extra "tokens" for their efforts in setting things up, or get to buy "tokens" at a reduced cost for those efforts and service and/or receive more "tokens" or discounts in acquiring them going forward for providing managing type services to the DAO, on an ongoing basis, and so on. I have always been a little suspicious by nature, and can't help but think that some parties doing these DAOs are profiting from them in some manner at everyone else's expense.