Things you must know before creating a Ventures DAO

The parameter settings for creating a Ventures DAO

When the initiator creates a DAO, the following types of parameters need to be set.
  • Basic information(social media accounts etc.)
  • Manager addresses and decision-making and benefit mechanisms (voting pass rate, income distribution ratio etc.)
  • Related parameters of DAO fundraising (fundraising target, whitelist, etc.)
Creating a DAO involves the generation of multiple complex smart contracts, so it requires relatively high gas fee. Before submitting, please make sure that all parameters are filled in correctly.

Three stages of the Ventures DAO

After the initiator submits and creates the DAO, the DAO goes through the following stages in sequence.

Stage 1 In deposit

Users can deposit funds to obtain DAO equity tokens
If the DAO reaches the fundraising target, the DAO will enter the next stage; if it fails, the DAO will only enter the return period In return .

Stage 2 In management

DAO managers start to manage DAO funds and can use functions in Apps & Settings (swap tokens, buy and sell NFTs, deposit DAO funds into DeFi protocols, etc.)
DAO managers can initiate a vote at an appropriate time to start the Redemption Period.

Stage 3 In redemption

Equity token holders can redeem funds

Three Important Rules

Equity Tokens are Negotiable and the Only Proof of Redemption
After successfully fundraising for the DAO, equity tokens can be circulated and transferred. The Equity token is the only proof of redemption because the redeemed tokens will be burned, and the total supply of equity tokens will be reduced accordingly.
Redemption Fault Tolerance Mechanism
Suppose some investments have not been paid off, and not all tokens have been swapped into stable coins before the redemption period, then the current NAV will be lower than the actual value, making the redemption value of those who redeem later higher than the former.
Final Decision Made by DAO managers
Ventures DAO differs from Community DAO in the sense that Ventures DAO enjoins managers with the responsibility of making leadership decisions; abiding by external commitments at the time of issuance will depend on the managers’ willingness. In the Beta 1.0 version, in order to protect the integrity of DAO fund management over a long period of time, Equity token holders are not supported to perform an exit operation similar to "rage quitting" during the management period.
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The parameter settings for creating a Ventures DAO
Three stages of the Ventures DAO
Three Important Rules