Kickstarter’s planned transition to a blockchain-based platform next year further highlights the growing intersection of crypto and crowdfunding. The crowdfunding site plans to make the switch next year, according to Bloomberg. But that may not be soon enough to compete with blockchain-based groups called decentralized autonomous organizations, or DAOs, which are capturing VC interest and launching their own crowdfunding initiatives.
DAOs operate according to rules enforced through smart contracts, which automate transactions using blockchain technology. DAO members make decisions, such as by voting on how to spend any money they’ve raised, through crypto tokens. The more tokens members have, the greater their voting power.