DXdao introduces DXventures

Internal DXdao investment fund supporting projects that solve problems of decentralized organizations.

On March 8, 2021, DXdao REP holders voted to pass a signal proposal in support of DXventures, a focused, internal investment fund to seek out and invest in promising projects that are solving the pain points of decentralized organizations.

DXdao is a decentralized collective that builds and governs decentralized products on the Ethereum blockchain. In this process, DXdao strives to use unstoppable, decentralized technologies that allow it to operate and govern while maintaining its core values.

During this journey, DXdao often encounters situations where the tool or service needed may not exist. In this scenario, DXdao is often exploring what is possible, what can be built, and who can build it. Sometimes, DXdao is able to fill the need itself, and other times, DXdao hires someone to build what is needed. And finally, there are times when these needs remain unsolved.

For this reason, DXdao is always looking for projects and teams that are building products that fill these needs and will be important in a decentralized world.

Today, DXdao has the opportunity to accelerate the work being done in this field, and DXventures is the vehicle to drive this initiative forward.

DXventures is a focused, internal investment fund to seek out and invest in promising projects that are solving the pain points of decentralized organizations. The problems that DXdao needs solved are the same problems that all DAOs will likely face. If we believe that the future will be full of these types of organizations, then we probably also believe that teams building solutions to these problems are also likely good investments.

For the past couple of months, the DXdao community has been actively discussing the topic of “How does DXdao collaborate, incubate, and partner with entrepreneurs, projects, and communities?” often as part of the DXbiz Weekly Meeting and in discussion channels.

DXdao is already having conversations with a few projects about funding needs to accelerate the progress of those projects. DXventures is a way to formally establish a program within DXdao to pursue these opportunities. DXventures will also be a beneficial addition to DXdao’s use of its treasury, becoming a key part of its diversified holdings.

DXventures is a great way to create deal flow for Mesa and Swapr. You can imagine a clear path for ideas to become revenue-generating entities:

  • Pain point for decentralized org
  • Team with idea to solve pain point
  • DXventures provides seed funding for team to build out idea
  • DXdao funds and/or incubates
  • Solution gains traction (and is used by DXdao)
  • IDO on Mesa for token sale
  • Swapr liquidity for secondary trading
  • Further relationship with project

DXdao has earmarked $1m of the treasury to be used for DXventures. DXdao will seek out opportunities to invest up to $100k each in projects seeking seed or growth capital.

DXdao will remain flexible when it comes to the terms and structure of these investments. If the project has a token, there could be a funding-for-tokens exchange. If no token exists, there could be an on-chain agreement. To help mitigate risks, a staged funding ladder where the investment happens in stages could be implemented.

DXdao exists as a global on-chain collective, and new ways of interacting and investing in organizations will likely have to be created.

Question: What types of projects will DXventures be looking to invest in?

Answer: Projects that are creating things that DXdao needs!

Some examples:

  • Decentralized Medium
  • Decentralized payroll
  • Decentralized key management
  • Decentralized node operation
  • Decentralized repository
  • Decentralized code collaboration
  • Decentralized …
  • Other (probably decentralized) cool ideas!

With DXventures now launched, DXdao has a goal to complete some initial investments in the coming weeks.

As of now, it looks like each individual opportunity/investment will likely require two additional proposals:

  • After community discussion around an opportunity, and a general soft consensus to move forward, there should be an internal Proposal for members to vote on that specific opportunity.
  • The second proposal would then be a Proposal submitted by the Project receiving the investment (with the help of DXdao contributors) including the terms of the deal and the commitment from each side.

The process will likely evolve as we progress down this path.

If you are an individual or team that is solving the pain points that DAOs face, and you are interested in learning more about DXventures, please join the DXdao Discord and let us know what you are working on!

About DXdao: DXdao is a decentralized collective that builds and governs DeFi products. DXdao was spawned in May 2019 through a collaboration between Gnosis and DAOstack. Reputation (REP) is voting power in DXdao, and DXD is the financial token with a claim on profit from DXdao products.

DXdao products include Omen (prediction markets), Mesa (batch auction DEX), Swapr (governance-enabled AMM), and Rails (L2 payment app).
DXdao believes in governance and decentralization.

Connect with us: Discord, DXdao Twitter, Telegram, Keybase, DAOtalk Forum

The DXdao is a decentralized organization, owned and operated by the community. It develops, governs, and grows DeFi protocols and products.

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