This case is reserved for use by Columbia Business School Faculty only.
Will a new European football structure threaten the incumbent organization?
Will a new European football structure threaten the incumbent organization?
In 2016, the Decentralized Autonomous Organization (The DAO) became the biggest crowdfunding project in history, with investments of over $168 million via cryptocurrency investments, a feat that showed a truly viable alternative to the traditional finance world that had the power to make or break business ideas and theoretically paving the way for unlimited entrepreneurship. However, quickly the inherent governance structural flaws of the DAO were becoming apparent, and in June 2016, a code breach allowed someone to embezzle $50 million of Ether. In this case, students will learn about how the Great Recession led to discontent with traditional financial markets, the corporate governance concerns that surrounded the financial intermediaries and the development of microlending and cryptocurrency-based markets. Students are asked to assess the development of the DAO and the efficacy of its governance model as well as propose a governance design solution for the next generation of the DAO.
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