Ventures DAO Template — New Experience of Crypto Asset Management
SubDAO protocol has redefined itself from a multi-chain DAO protocol that connects DAOs with DApps to a protocol that facilitates a smooth transition of cross-chain management from Web 2.0 to Web 3.0.
We understand the paradigm shift of internet protocol from Web 2.0 to Web 3.0, and we are invested in helping millions of users to effectively transition by developing major building blocks for others to follow, starting with the Ventures DAO Template.
Ventures DAO template revolutionizes governance in finance, bringing a new perspective to the future of organizations and investments. With a single click, Ventures DAO enables DAO-based venture capitals and financial institutions to participate in Web 3.0 allows multiple users to establish decentralized venture capital. Hence, crucial financial and investment decisions like fundraising, asset management, and equity settlements can be completed on-chain.
The Process is Simple
SubDAO provides a complete template for developers and managers of Ventures DAO. Hence, anyone can participate without having deep knowledge of computer programming. Also, this preset template eases the Governance process by eliminating the need for constant development and maintenance of the protocol. To create a personalized Ventures DAO, users simply need to follow through with the SubDAO Ventures DAO Template and automatically establish governance by creating a clear set of rules via smart contracts.
The Ventures DAO Template is perfectly suitable for DAOs involving Web 3.0 crypto asset management, allowing multiple users to establish decentralized venture capital. All investment decisions, fundraising, asset management, and equity settlements will be completed on-chain.
There’s more;
The Ventures DAO Template also supports both primary and secondary market investments, as well as NFT assets purchase. In the future, the SubDAO team will upgrade the Ventures DAO Template to allow DEX transactions by supporting dApps like Uniswap, dYdX, PancakeSwap, SushiSwap, and more.
There are three stages involved when using the SubDAO Ventures DAO Template
1. Creation
2. Management
3. Redemption and Dividends.
The workflow and logic are outlined as follows.
1. Creation and the Equity Subscription
This stage requires the DAO creator to fill in the basic information of DAO and set the fund’s subscription information.
The basic information required are: DAO’s Name, Description, and link to DAO’s Twitter page.
After selecting the Ventures DAO Template, the creator will be required to fill in the DAO details.
The DAO details required are: GP carry, Management Fee, GP Address, GP Bonus, Fund Type, Fund Soft Cap, Fund Hard Cap, Equity Token Name, Equity Token Symbol, Vote.
The usage of the management fee mentioned above will be jointly decided by Governance Participants (GPs); the fee can be used to support hackathons and the GP on-site meeting.
After completing the creation, the DAO Equity Token will be issued successfully. Then, the DAO creator can initiate the “Equity Token subscription.” The subscription time is divided into “GP Period” and “LP Period.”
The information required to initiate a GP subscription includes: Raising Time, Total Raising Ratio of GP, Maximum Deposit per GP, and Minimum Deposit per GP.
The information required to initiate an LP subscription includes: Raising Time, Total Raising Ratio of LP, Maximum Deposit per LP, Minimum Deposit per LP, Whitelist info.
All DAOs are only visible to the creator before submitting an official application to SubDAO for approval. However, the creator can share the link with GPs and LPs who need to participate in the subscription or fill in the information on the “Homepage Display Application.”
2. Management
After the subscription is completed, the created DAO will move to the management phase. During this period, GPs can conduct various investment and management behaviors, including Vault fund transfers (participating in the project’s seed round financing), Management Fee fund transfers, NFT transactions (Opensea, etc.), Swap Tokens (Uniswap, Pancakeswap, etc.), Add GP, Remove GP, and GP voting to determine the fund redemption period.
Fund transfers are directly triggered by multi-signature voting, while NFT and Swap are executed in an “Approve” action. So, for example, if all GPs want to award a single GP the right to temporarily conduct transactions, the smart contract enables them to vote for the desired GP by filling in necessary information like the GP’s public address, the duration of temporary access, and specific fund to access.
When a GP initiates a vote for Remove GP or Add GP, the GP Address and new GP Bonus allocation ratio need to be filled in.
During the management period, all Equity Tokens are negotiable.
3. Redemption Rules and Calculation Formula
At the end of the management period, GPs can vote on whether to enter the redemption period.
The redemption period signifies the end of the DAO
The redemption period is perpetual until the last LP (Equity Token holder) redeems their proceeds. However, those who transfer during the management period and no longer hold Equity Tokens cannot participate in redemption.
Some of the rules regarding the redemption period are as follows.
· Independent Voting Rights and Equity: GPs are decision-makers, while LPs are shareholders; without any voting rights, they are independent of each other
· Single Currency NAV Calculation: During the redemption process, the current NAV(net assets value) is calculated by only one single currency — usually based on the stablecoins used when LPs subscribed to equity. Before entering the settlement period, GPs need to actively swap other idle tokens into stablecoins which are used for settlement through DEXs.
· LPs First Principal: When LPs redeem their equity tokens, the GP carried-interest pool will be unlocked accordingly, then GPs can withdraw the unlocked dividend funds during the settlement period — unlocked funds cannot be withdrawn.
· 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 GP: Ventures DAO differs from Community DAO in the sense that Ventures DAO enjoins GPs with the responsibility of making leadership decisions; abiding by external commitments at the time of issuance will depend on the GPs’ willingness. When selecting to join a Ventures DAO, each GP should actively investigate the reputation of other GP members, then join after careful consideration.
The calculation formula for fund redemption is as follows:
1. Calculation of LP Redemption
If the Net Asset value is less than the Initial Fund Size
NAV < IFS
Then,
Return = NAV ×（ETA ÷ TS)
However, If the Net Asset value is greater than the Initial Fund Size
NAV > Initial Fund Size
Then,
Return = IFS ×（ETA÷ TS）+ (NAV — IFS) × (1 — GP Carry Ratio) ×（ETA ÷ TS）
*NAV is the total value of the current token and in addition to the Management Fee.
ETA is the Equity Token Amount
TS is the Total Supply of Equity Token
2. Calculation of GP Dividend
Dividend only comes from a profit; hence the Net Asset Value must be greater than the Initial Fund Size
NAV > IFS
Then,
Return =（NAV — IFS)×GP Carry Ratio
Participate in the Ventures DAO Template Beta Testing Event
You can participate in Beta testing the Ventures DAO template and win rewards while at it. All you need to do is claim testnet tokens as follows:
*Claim BNB test coin via Binance Smart Chain Faucet Website.
*Claim the USDT test coin (BNB Smart Chain) by submitting your address here.
The SubDAO team will distribute test tokens to applicants every day at 9:00 am (UTC) from the event starts. Ensure that you utilize the test tokens given to you in order to be eligible for the airdrop rewards.
- After receiving test tokens, you can participate in the event via this link.
Follow our official social channels to check more information!
About SubDAO
SubDAO is a multi-chain DAO protocol that allows any decentralized organization to swiftly create and manage DAOs. We are committed to facilitating a seamless Web3.0 entry by providing blockchain-based digital agreement signing, DAO social networking, asset management, and other tools and services.
The founding members of SubDAO include industry experts such as the former Technical Team leader of the IBM Group and other high profile developers from Polkadot. The SubDAO team has completed multi-million dollars financing from dozens of institutions and individuals, including Hypersphere, Huobi Ventures, OKEx Blockdream Fund, and Ryan Selkis, founder of Messari.
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Website: https://www.subdao.network/
