A Beginner's Guide To Investing In Dao Maker

DAO Maker (DAO) is an incubator that provides growth technology and SaaS solutions for crypto startups. To invest in DAO Maker, you will need either Bitcoin (BTC) or Ethereum (ETH) for trading purposes. You can then use a cryptocurrency exchange like Binance to trade your BTC or ETH for DAO. Before buying, you will need to create an Ethereum wallet and address at Metamask. You can then purchase DAO with a card or bank transfer.

DAO Maker: an incubator for crypto startups

DAO Maker is a unique platform that operates within the cryptocurrency and blockchain realm. As a Decentralized Autonomous Organization (DAO), it is governed by rules encoded as smart contracts on a blockchain. This enables large groups of autonomous individuals to collaborate and make decisions towards shared objectives without traditional legal structures or centralized control. DAO Maker specifically focuses on providing growth technologies and Software as a Service (SaaS) solutions to crypto startups, with the goal of streamlining their venture capital acquisition process.

DAO Maker acts as an incubator for emerging crypto projects, offering essential support and resources for their development. It assists new projects in building and nurturing their communities, subsequently converting these communities into valuable contributors to a DAO using tokens. DAO Maker's platform feature, DAO Pad, allows retail investors to invest in digital assets and stocks at an early stage, helping to crowdfund young protocols by attracting small-scale investors.

DAO Maker's Additional Services

In addition to its incubation role, DAO Maker offers a range of services to support crypto startups:

• Social Mining Rewards: DAO Maker incentivizes community engagement by rewarding users with tokens for contributing to the growth and improvement of crypto projects.
• Advisory Services: The company provides expert advice and consultation on company management and strategic decision-making to crypto startups.
• DAO Pad: This dynamic monitoring tool allows users to track the progress of incubated projects and access exclusive investment opportunities as they evolve.
• Strong Holder Offerings (SHOs): DAO Maker introduces a lottery-based system that prioritizes experienced and credible participants for token allocation, ensuring the most committed investors are rewarded.
• Social Mining: Crypto projects can motivate community members through token incentives, encouraging active participation in the growth and enhancement of startups.

DAO Maker's Unique Benefits

DAO Maker provides a secure and decentralized platform, fostering growth and allowing crypto startups to unlock their potential. It specializes in addressing early-stage challenges, particularly in communications and public relations. DAO Maker offers a suite of services, including marketing, SEO, site development, and community-building tools. The "DAO Pad" launchpad enables users to follow and invest in the development of incubated projects, providing real-time monitoring and access to unique investment opportunities.

DAO Maker has successfully launched several projects, including Orion Protocol, My Neighbor Alice, LaunchX, and DAFI Protocol. It has also helped launch Seascape Network (CWS) and Infinity Pad (IPAD). With its comprehensive range of services and features, DAO Maker establishes itself as a catalyst for crypto startup growth, providing ongoing support and opportunities for community engagement and development.

DAO Pad: an investment system for retail investors

DAO Maker's DAO Pad is a platform that allows anyone to fund quality projects, carefully vetted by the DAO Team, at the initial level—before the SHO (Strong Holder Offering). This way, promising startups can get grassroots funding to develop their projects, while users get premium allocation in top coins.

How it works

To use the DAO Pad, you need two things:

• Funds for allocation (pre-funded in USDC)
• A certain amount of $DAO staked in the DAO Vaults (or $DAO-wETH in the liquidity pool)

The amount of allocation slots per project is limited, so DAO Maker has devised a lottery system based on the amount of $DAO a person has staked in the DAO Vaults. Normal commitment grants DAO Power in a 1:1 ratio, while providers of $DAO-wETH in the liquidity pool get rewarded with 1:3 DAO Power.

DAO Power can be split between multiple projects according to preference and with the usual tranche system in mind:

• Tranche 1: 500–999 DAO Power
• Tranche 2: 1,000–1,999 DAO Power
• Tranche 3: 2,000–3,999 DAO Power
• Tranche 4: 4,000–9,999 DAO Power
• Tranche 5: 10,000+ DAO Power

Each project has a different number of slots for allocation and winning chances per tranche. For example, Tranche 1 usually has a winning chance of approximately 1/20, while Tranche 5 gets 50%+.

If you do win, you have successfully funded a quality project at a level previously only available to institutional investors. However, the DAO Power used to qualify will now be locked for 15 days to increase the winning chances of other participants.

DAO Maker's mission

DAO Maker believes that crypto doesn't need to be a zero-sum game. Instead, the platform encourages everyone to grow together by adding a little bit of value, like a worldwide DAO. DAO Maker provides leading solutions in community incubation, fundraising, and other growth-related technologies for tokenized businesses.

Investment DAOs

DAO, or Decentralized Autonomous Organization, is a digital investment vehicle that raises investment capital and invests it based on the voting majority of the DAOs members. Using blockchain technology, an Investment DAO emanates from code. Its structure, rules for governing, and ownership rights are all built into smart contracts that are deployed to a blockchain for all members to see and interact with.

Benefits of Investment DAOs

• Transparency: Every transaction to and from the treasury is recorded on a blockchain that is viewable by every member of the DAO, providing complete transparency.
• Democratization: Investment DAOs can help to decentralize fundraising and spread funding out among many different sources.
• Virtuous Cycles: Investment DAOs democratize access to being an investor, creating a virtuous cycle where usually under-represented investors now have a chance to invest in under-represented people, businesses, communities, and regions.
• Less Risk, Lower Fees: Investment DAOs offer risk diversification and lower fees, allowing investors to spread their risk across many asset classes and projects.

DAO Maker Token: the governance token of the DAO Maker Ecosystem

DAO Maker is a decentralised autonomous organisation (DAO) that utilises blockchain technology to facilitate decentralised governance and decision-making. The DAO Maker Token, also known as MKR, is the governance and utility token within the DAO Maker ecosystem.

As a governance token, MKR holders have the power to influence and participate in the decision-making processes of the DAO Maker platform. This includes voting on proposals and parameters such as stability fees and collateral types, ensuring the long-term viability and direction of the projects they support. MKR holders can also trigger an emergency shutdown in extreme scenarios, such as severe market volatility, to protect the stability of the DAO Maker ecosystem.

The MKR token is widely available on decentralised exchanges, allowing anyone to invest in voting power. However, it's important to note that voting power is weighted, giving more influence to those who hold a larger amount of MKR tokens.

To invest in DAO Maker and purchase the MKR token, you will need an Ethereum address and wallet. You can then purchase MKR with a card or bank transfer, or by exchanging other cryptocurrencies. It is listed on the Crypto.com App and Exchange, where you can trade it with various fiat currencies and other cryptocurrencies.

Strong Holder Offerings: a lottery-based funding system

Strong Holder Offerings (SHO) are a fundraising mechanism designed to seed projects with a powerful community that aims to be part of the development for the long run. The SHO offers allocations in a lottery format, conducted through DAO Maker's Social Mining software. This software assesses whether a person has been a strong holder and then appoints tickets based on a hodl index. DAO Maker incentivizes investors with strong hands by choosing them as participants in an SHO while also offering them protection.

The assessment is done based on previous tokens issued through DAO Maker. Therefore, strong hands that bought and held Orion's ORN (from the DYCO or any exchange) will qualify. Strong Holder Offerings are cyclical: each SHO will run a lottery on the previous SHO's tokens. While OpenPredict will assess ORN holding, the next SHO will assess OPT (OpenPredict Token) holding.

An SHO can be open to people who have held a competitor coin for six months or to active liquidity providers on a decentralized exchange (DEX). Additionally, an SHO may focus on individuals with a transactional volume of more than $5 million in the last month.

The crowdfunding model also allows participants to seek refunds if they want to withdraw support since DAO Maker's update on the offering. SHO has been renamed Refundable Strong Holder Offering (rSHO). It is important to note that the right to a refund expires if the value of the token issued by a project during the initial SHO increases and holds at 400% for 120 days.

Venture Bond: a product that guarantees a return on investment

Venture Bonds (VBs) are a structured financial product designed to enable startups to issue bonds accessible to retail investors. Money collected from bond purchasers is used to generate interest on the principal, which is then swapped for equity or tokens. While the bonds may generate modest returns, the early-stage equity or tokens they are swapped for could see much higher growth. With the bond, retail investors capture only a fraction of the growth in the swapped equity or tokens. So, for example, a 100x return would translate to 1,000% or even 10,000%.

The Venture Bond product largely removes the risk factor in venture funding. Even if a swapped token or equity reaches -100%, the net return is still a 1x return, essentially no change to the investor's portfolio. This makes it safer for retail investors to enter the venture market, which traditionally carries a high risk of potential loss.

DAO Maker is launching Venture Bonds to increase retail involvement and safety in the cryptocurrency space. VBs will provide startups with compliant funding, sourced from retail investors. The structured nature of VBs ensures that startups receive the committed funding and that retail investors receive their swapped tokens and equity, without startups acquiring the principal funds.

Frequently asked questions