The post What Is an Investment DAO? appeared on BitcoinEthereumNews.com.

Over the past few years, Decentralized Autonomous Organizations (DAOs) have become commonplace in cryptocurrency. Whether you discovered crypto through meme coins, NFTs, or DeFi, chances are you’ve interacted with a DAO somehow. DAOs are organizational structures for businesses or communities where control is spread via the distribution of tokens rather than hierarchy. They’re typically online communities focused on a specific goal. DAOs take many forms; some are light-hearted, like a group of strangers on the internet putting funds together in a bid to buy the U.S. Constitution, and some mimic traditional businesses, creating decentralized investment funds, lobbying groups, and even service entities. Investment DAOs such as Vanta Investment DAO, as the name suggests, are DAOs where users pool their funds in order to make investments. What is an investment DAO? Investment DAOs are DAOs where users pool funds to invest in projects together or source deal flow and share it with a community of investors. They come in many shapes and sizes. In a traditional investment DAO, DAO members buy into the DAO with their capital and receive tokens representing their share of the total investment. Then, DAO members go out and source investment deal flow or opportunities for the DAO to invest in. A deal is presented to the DAO, and members vote with their shares on whether or not the investment should be made. It’s important to note that all DAOs are different and may handle their operations differently based on how the DAO is set up or the specific purpose it’s trying to achieve. An example of an investment DAO with a similar structure to this is Hydra Ventures. Another form of investment DAOs is a syndicate. In a syndicate, users gain access to the DAO by purchasing an NFT or a certain amount of a token.…

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Filed under: News - @ September 3, 2024 10:26 pm