How to buy DAO tokens with Ether

Now that you have Ether with you, you will probably want to spend it in something useful.   If you’re reading this before May, 28th 2016, you can invest your Ether in The DAO.

The DAO is a company which is currently going through the funding stage but in a very unusual way. First of all, the funding is being made in Ether instead of a regular currency.  Secondly, the funding is open to all earth habitants, every single human being alive can participate of the funding stage.  What a great thing, no?

DAO homepage

Of course you wouldn’t even want to participate in something you don’t understand or don’t even know.  There’s an article that explains what is The DAO and why you should care about it, so we suggest you read that one first.

 

The DAO is receiving funding at a specific Ether account:

0xbb9bc244d798123fde783fcc1c72d3bb8c189413

This account is not likely to change in the near future, so we will post it here for future references.  One cool thing about the Ethereum ecosystem is that you’ll be able to track every and each transfer being made to any account.   So you want to know how many people have invested in the DAO and how many ether has been put toward funding? Just get in here to see all that information:

https://www.etherchain.org/account/0xbb9bc244d798123fde783fcc1c72d3bb8c189413

Now, let’s move towards the part that you’re probably interested of: How to participate in the DAO.

At the moment of writing this post (May 18th 2016), the DAO has received the equivalent to 141 millions of dollars and will stay open for anybody to invest until 9 more days, May 28th.

DAO funding status

Investing in the DAO is as easy as just sending a few ether to their ether wallet.  That’s it, no more to do.  But of course, you need to know how to use an ether wallet to be able to do that!

How do The DAO knows you have sent some money to them? Well, that’s part of the wonder of this system.  Your wallet account is forever associated to any ether transfer you do, and you’re then only one holding a private key to your wallet. So The DAO doesn’t have to put any barriers or confirmations to be sure you are you, they don’t even need your name!  Simply put: If you control the wallet that made the deposit, you’re entitled to as many DAO tokens you bought.

NOTE: This is a hint of why is critical to protect your wallet private key at all cost! Whoever controls the wallet, controls the money, so you want to be sure nobody else can never have control of yours.

If you’re just starting in this world, go ahead, open an account with a trader that handles ether, buy some ether, send them to your wallet, and then send them to The DAO to get some DAO tokens.  We will repeat these steps:

  1. Open a trading account.
  2. Get some ether.
  3. Send the ether to your wallet.
  4. Get some DAO Tokens with your ether.