Colony which is a startup using Ethereum’s Blockchain has announced the Colony Foundation, a non-profit foundation responsible for developing the open source Colony smart contract network on Ethereum.
In the Colony blog post, Jack du Rose, founder of the company announced the launch. The blog stated that, Colony Network is infrastructure for internet organizations and part of the remit of the foundation which will be supporting the development of applications on top of the protocol.
The concept centers around the idea of a True DAO, about which Rose explains saying, “If ‘The DAO’ is a decentralized investment fund, a ‘True DAO’ is a decentralized company (or non-profit).” Rose further explains stating, “It solves the problems of effective coordination, cognition, and collaboration which has traditionally been solved by ‘the firm’.”
Rose said that, Colony will support all kinds of Internet Organizations, each with their own trust or privacy requirements since True DAO isn’t suitable for all cases. “True DAO must have a robust reputation mechanism for accurately and trustlessly identifying competence and trustworthiness by systematic and objective assessment of behavior,” Rose noted.
A True DAO should allow its contributors to be paid in either cash (e.g. ETH, BTC, DAI) or ownership of the DAO proportionate to the value of each member’s contribution, said the blog. This is just the foundation and Colony plans to build application on top of this foundation. Also the blog has stated that by subscribing the Colony newsletter, one can get to know the updates.
