daos.fun: The next liquidity black hole?

Written by Karen, Foresight News

In addition to BAN, which was endorsed by Sotheby's Vice President Michael Bouhanna last weekend, ai16z also attracted a lot of attention with its outstanding performance. Its market value once approached the $100 million mark, and has now fallen back to around $46 million.

Someone spent only 20 SOL (about 3,500 US dollars) to buy 47.54 million ai16z three days ago, which is currently worth 2.3 million US dollars, with a return rate of 650 times.

So what exactly is ai16z? How does its launch platform daos.fun work? What are its characteristics and risks?

What is daos.fun and how does it work?

daos.fun is a platform founded by @baoskee and supported by Alliance DAO 支持的平台。这个平台的主要功能是帮助基金经理、创作者筹集资金，以便他们能够建立自己的 DAO，并代表TokenHolders invest in Meme.

Currently, daos.fun is still in the invitation-only stage, and only creators who have obtained official or @baoskee invitation codes can participate.

Once you become a creator of daos.fun, you will need to set the fundraising target amount, fund expiration date, and management fees, and then you will have one week to raise the required amount of SOL.Tokenwill be issued in a fair manner, ensuring that everyone hasXiaobai Navigation能以相同的价格获得代币。如果筹款失败，购买者有权赎回 SOL，提前赎回则需承担 10% 的损失。

When the fundraising reaches the preset hard cap, creators will invest the raised SOL in their favorite Solana protocol or Meme, and the token will also be publicly traded through the virtual AMM market. In this way, the market value and price of the DAO token will fluctuate with the fund's trading activities and performance, and of course market attention will also account for a very large proportion.

In principle, the upside of the DAO token price is unlimited, but its downside is limited by the market value of the fundraising. As long as the market value of the token exceeds the original fundraising amount, the holder can sell the DAO token at any time.

All DAOs have a maturity period between 3 months and 1 year. walletThe DAO tokens will be frozen, and SOL profits will be distributed proportionally to creators and investors. Token holders can choose to destroy DAO tokens to redeem the underlying assets, or sell them directly on the market (provided that the market value is higher than the fundraising amount).

Ai16z: daos.fun is the largest in terms of market value AI DAO

如上所述，目前 daos.fun 平台上最成功的 DAO 基金无疑是@pmairca（即 Marc AIndreessen）所创立的 ai16z 基金。ai16z 以 420.69 SOL 的初始筹资额起步，在 a16z 创始人 Marc Andreessen 两次在官方推特上提及的助力下，市值断层式第一，曾一度逼近 1 亿美元，目前虽有所回落，但仍稳定在 4500 万美元左右。

Top 10 DAOs by market capitalization on daos.fun

Marc AIndreessen once pointed out, “We are in the midst of a revolutionary change.BlockchainThe deep integration of technology will reshape the landscape of finance and innovation. In this transformation process, AI16z, a pioneer of AI DAO, is playing a leading role, depicting a future vision in which AI agents are the core drivers of value creation and growth. In the initial stage, ai16z will operate in a highly autonomous manner under the guidance of the collective wisdom of stakeholders. Its long-term goal is to achieve full on-chain and place AI entities under the strict protection of a trusted execution environment (TEE) to ensure unprecedented transparency,Safetyand integrity. ”

ai16z not only actively listensCommunityThe AI system will closely track the implementation of these suggestions. Those individuals who continue to contribute reliable insights will win the trust and confidence of AI, while the influence of those whose suggestions are ineffective will gradually weaken. To maintain a balanced distribution of power, the input weight of each member will be proportional to the proportion of their shareholding in the DAO, thereby effectively preventing potential threats to the system from malicious actors. In the future envisioned by ai16z, all those who empower and add value to the network will be fairly rewarded.

The official page of ai16z also shows that ai16z will also invest in seed-stage AI companies in the fields of robotics, bio+ healthcare automation, consumer manipulation, crypto anarchy, enterprise obsolescence, fintech disruption, game theory development, infrastructure hijacking, etc. ai16z's technical battle has been open sourced on Github.

It is worth mentioning that kotopia is the DAO that raised the most funds on daos.fun, raising nearly 4,207 SOL (worth $740,000) and its current market value is $810,000.

What are the characteristics and risks of daos.fun?

So, what are the characteristics and potential risks of daos.fun?

daos.fun has lowered the threshold for operating Meme funds. If daos.fun opens up registration for creators, theoretically anyone can launch Meme DAO or Meme VC, and some KOLs and institutions may also issue tokens through daos.fun. In the current context where AI Meme is extremely popular but most retail investors find it difficult to grasp its rhythm, daos.fun has undoubtedly opened up new possibilities for retail investors.

Openness and transparency are also a major feature of daos.fun. First of all, the asset management of each DAO is publicly displayed on the daos.fun page, and secondly, the profit sharing mechanism is relatively transparent. In addition, all DAO creators have linked their Twitter accounts, which usually means that they value their reputation. But who knows?

Daos.fun's profit points mainly lie in DAO tokens and fund investment performance. However, this profit model is also accompanied by risks that cannot be ignored, especially the improper behavior of fund managers such as front-running transactions. More importantly, the serious deviation between the fund's market value and its net asset value has become another potential risk point.

For example, the largest token on daos.fun, ai16z, has a market value to net asset value ratio of 58. The second largest token, SEQUOAI (market value of $455,000), has a ratio of 40, while the third largest token, NORM, has a ratio of 29. The high ratios of these funds undoubtedly reveal the strong atmosphere of speculation and hype in the current market, as well as investors' extremely high expectations for the future performance of these funds. However, this also reminds us that while pursuing high returns, we must be wary of potential market fluctuations and risks.

As early as 2022, the concept and implementation of Ventures DAO had already appeared in the Web3 field, but no significant progress was made at that time. This time, with the rise of the Meme craze, whether the Meme DAO Fund, AI DAO Fund, etc. can set off a craze, Foresight News will continue to pay attention.

The article comes from the Internet:daos.fun: The next liquidity black hole?

Related recommendations: The pledged amount exceeds 480,000 ETH, why is mETH so popular?

Currently, more than 480,000 ETH are staked on mETH, and TVL has risen to $1.189 billion. Written by: 1912212.eth, Foresight News 3 years ago, Dragonfly partner Haseeb Qureshi once said, "I am looking forward to Rollup, but also worried about...