Former Polychain GP unveils $125M crypto fund with DAO governance ambitions

Former Polychain Capital wide spouse Tekin Salimi has launched a caller blockchain-focused concern money that volition yet beryllium converted into a founder-owned decentralized autonomous enactment (DAO), offering a caller mode for startup leaders to beryllium rewarded for their contributions. 

The $125 cardinal fund, known simply arsenic “dao5,” volition put successful blockchain and cryptocurrency projects successful their pre-seed and effect stages. In the startup world, a pre-seed circular usually helps institution founders get their operations running. The effect signifier is the archetypal authoritative equity backing round.

The money volition put chiefly successful projects specializing successful layer-1 blockchain infrastructure, privateness technology, decentralized concern (DeFi), DAOs, gaming, nonfungible tokens and crypto-oriented societal platforms.

Unlike accepted venture superior funds wherever institution owners simply person nonstop backing from task capitalists, dao5 volition springiness recipients a assistance of governance tokens that volition comprise the fund’s aboriginal DAO. Employees and advisers of dao5 volition besides person governance tokens.

The money is expected to statesman its ceremonial modulation into a DAO — and hence execute an due level of decentralization — sometime astir 2025.

By pursuing a DAO governance structure, dao5 is attempting to supply task founders with a definite grade of hazard diversification arsenic each the assistance recipients volition person vulnerability to each different projects successful the portfolio. The institution says this volition incentivize founders to collaborate and maximize their chances of success.

Will 2022 beryllium the twelvemonth of DeFi and DAO? @Huobi_Research projects a large twelvemonth for both, but it is overmuch little bullish connected Bitcoin. https://t.co/wdeECLiS2J

— Cointelegraph (@Cointelegraph) January 22, 2022

“The extremity of dao5 is to research a caller exemplary to bootstrapping a DAO: by focusing archetypal connected endowment and superior acquisition done task investing, and 2nd connected increasing the treasury worth done leveraging the corporate endowment of the dao5 community,” said laminitis Tekin Salimi.

Salimi served arsenic wide spouse to Polychain Capital — 1 of crypto’s biggest task funds — for implicit 4 years. His word astatine the institution ended successful February.

Related: Legal DAOs: Why is the Marshall Islands betting connected a decentralized future?

DAOs person multiplied successful the past 2 years empowered by the imaginable to determination the satellite done democracy. But are they a feasible alternate to the accepted governance models?
(Via @CointelegraphZN)https://t.co/w0vdIh0c9n

— Cointelegraph (@Cointelegraph) March 4, 2022

Proponents of decentralized autonomous organizations presumption this mode of governance arsenic a large innovation successful however organizations and systems should run. A DAO’s mandate could use to each sorts of governance schemes wherever the principal-agent problem exists. As Cointelegraph reported, the Republic of the Marshall Islands has taken a bold measurement successful normalizing decentralized firm governance by officially recognizing DAOs arsenic ineligible entities.