Cover photo

​State of the Venture DAO

Key Points:

  1. Compared with traditional venture capitals, venture DAO has several distinctive characteristics. 

  2. BitDAO with $2.2B has the highest treasury at the time, the total treasury of other DAOs are $43.62M.(Counted by DeepDAO)

  3. The investments BitDAO has made till now: EduDAO, zkDAO, Game7.

  4. The Own.fund is an investment vehicle that funds community-led and Social Token projects, whose treasury assets keep growing from April this year.

Table of contents

1、The characteristics of Venture DAO

2、The state of Venture DAO

3、BitDAO

4、Own.fund

5、Summary

1、The characteristics of Venture DAO

Venture DAO is a community-governed group that aims to invest in the shared capital of the community. These are DAO-based investment groups that truly represent the interests of the members.

Compared with traditional venture capitals, venture DAO has several distinctive characteristics, such as:

  • Can usage the wisdom of the community to make strategic investment decisions, they provide diversified background investigation

  • Move the investment fund to the chain, improving the transparency of investment decisions

  • More flexible "in and out" of members

2、The state of Venture DAO

There are 26 available investment DAOs on DeepDAO. They are ranked by treasury, token holders, proposals and votes. BitDAO with $2.2B has the highest treasury at the time, the total treasury of other DAOs are $43.62M.

source: https://stg.deepdao.io/organizations

Focusing on the primary market, this article organizes 4 Venture DAOs, and introduces each organization from the aspects of member entry and treasury and governance mechanism.

source: https://stg.deepdao.io/organizations

We will conduct an in-depth research analysis on BitDAO(the richest one) and Own.fund(the growing one).

3、BitDAO

BitDAO is a DAO with billions in existing assets and billions in forecasted contributions, according to its whitepaper. It was created by Bybit, a derivatives exchange in Singapore.

The BitDAO treasury size is $2.2B currently, only second to Uniswap’s. BitDAO aims to grow the treasury through liquid, short term, and long term opportunities including:

1.pledged contributions from Bybit. Bybit has pledged to contribute 2.5bps of futures trading volume to the BitDAO treasury. Note that the 2.5bps was based on 50% of nominal fees. 

2.specialized Autonomous Entities (such as Game7, zkDAO, EduDAO)

3.R&D labs

4.token swaps and venture deals

5.yield strategies

Prior to its launch, BitDAO had raised $230 million in private funding. BitDAO is governed by $BIT token holders. The DAO later raised $365 million when it launched BIT. BIT has a fixed supply of 10,000,000,000, and the distribution is as follows:

source: https://docs.bitdao.io/litepaper-1/tokenomics

According to the data of coingecko, 24h trading volume of Bybit is reported to be at $4,995,716,146.41, then the donation amount will be $312, which means that the total fund is about $114k a year.

Assets in the BitDAO treasury are mainly BIT, which has a percentage of 60.8%.

source: https://stg.deepdao.io/organization/30d12da9-5fd5-411a-8ca8-1422a4ce1373/organization_data/finance

The investments BitDAO has made till now:

  • Partnering with Mirana Ventures to allocate $33 million in three years to EduDAO, funding University ecosystems through funding faculty, research, projects, and events.

  • Provide zkDAO with $200 million worth of crypto assets to help expand exhibition zkSync's ecosystem.

  • $400 million in seed investment to create Game7, boosting the development of blockchain games.

4、Own.fund

The Own.fund is a collaboratively-owned investment vehicle that funds community-led and Social Token projects, as well as the tools and infrastructure that support them. 

At launch, prospective members are able to contribute funds in DAI or USDC during a deposit period. Once this deposit period ends, the first capital raise is considered complete. Members of the Own.fund will be required to complete KYC requirements for the purpose of anti-money laundering and sign an Own Fund Agreement. 

The OWN token acts as a voting token of the Own.fund. The percentage of the total supply of OWN tokens that need to participate in a vote for it to be considered valid is dependent upon the amount of the investment. For example: A 50,000 DAI investment proposal might require 30% of OWN tokens to be committed to a vote, with 51% in favor being sufficient to pass it.

In order to incentivize active engagement and motivate members to carry out tasks on behalf of the fund, an NFT/POAP-based Referral and Reward Program has been implemented.

source: https://own.fund/#/hom

The total treasury is $5.1M now. The top currencies on treasury are USDC, WETH. And we found that the treasury assets keep growing from April this year, at which the bear market started.

source: https://stg.deepdao.io/organization/11b069eb-8ba5-4124-85cb-729a8079219c/organization_data/finance

For this treasury, Gnosis Safes have been created on Ethereum mainnet and on Polygon. These safes can be monitored at the following addresses:

mainnet:0x97b5bCfeA315D68f8007cA93bf6020a78dd26D49 

polygon:0xFfF1d15AdecbF4e5c2Cf789D69472b80D0fFdc10

We can find the assets from three platforms, which cross-certified the total assets value.

5、Summary

Since the BitDAO treasury size is only second to Uniswap’s with little gap, we can see the attractiveness of venture DAO. We've seen similar traction with personal social tokens-WHALE. And it can be said that Own.fund bets on the social track. If this track develops and grows in the future, this DAO will also become famous.

But in writer’s opinion, there are still two problems to be solved:

Firstly, We can see that BitDAO has 18.8k members, but the voters are only 91. It is very likely that there will be a portion of the paddling members, all they want to do is get a piece of the pie without providing truly valuable contributions to the DAO. Maybe when the amount and income of each investment are counted according to the voting ratio. That is to say, who votes who can invest.

Then, decision-making efficiency may be decreased by the voting process, leading to missed investment opportunities.

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