Understanding Investment DAO (Decentralized Autonomous Organization)

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A decentralized autonomous organization (DAO) is an organization represented by guidelines encoded on a computer program, and is controlled by members of the organization and secure from external influence.

In an investment-focused DAO, several investors pool funds towards a unanimous investment goal. The goal could include investing in startups, organizing grants, or purchasing NFTs. With investment DAOs, the goal is usually too big for anyone to achieve individually. This brings to mind the common DAO mantra that says: “If you want to go fast, go alone. If you want to go far, go together.”

In investment DAOs, members purchase digital tokens, like how investors buy shares in a public company, that bestows them with shared ownership or voting rights. In some cases, these tokens are earned through various means, including through work input on the project.

While some DAO proponents have argued that everything about a DAO should be decentralized. However, history suggests that total decentralization in the blockchain is not achievable. Even if ownership of a project is completely decentralized, the project still requires a team to operate and maintain the system. Much like how a company needs employees to keep operations running smoothly.

MetaCartel Ventures: Out Top DAO Pick

MetaCartel Ventures is an example of a successful team-oriented DAO in the market today. The organization features a team of high-performance developers and a team of external investors to balance it out.

MetaCartel is an investment DAO comprising individuals looking to invest in novel projects developed on the Ethereum blockchain. Instead of relying on their individual investing capacity, this group of investors pooled funds and connections, giving them an edge in locating and investing in top blockchain projects.

Like traditional venture capital firms, members of MetaCartel locate promising projects, vet the prospects of these projects, and put the investment decision through a vote. Thanks to the vast number of members in this organization, prospective investment projects undergo more adept scrutiny.

MetaCartel has participated in the early funding rounds of several popular blockchain projects, including Zapper Finance, PoolTogether, and Rarible.

Membership in MetaCartel comes in three levels. They include:

Mages

These are like managers or general partners as in traditional companies. Mages are involved in the nitty-gritty of the organization, and their positions are not permanent to foster innovation and competition.

Goblins

These are like limited partners as in traditional companies. They can invest in the DAO but have no obligation with being involved with the day-to-day operations.

Summoners

These are like contractors or employees as with traditional companies and facilitate legal, clerical, or administrative tasks for the DAO.

By maintaining this three-tiered membership structure, MetaCartel has successfully integrated the best of both worlds—centralized and decentralized—into its system.

By creating this three-tiered membership structure, MetaCartel is trying to balance the best of both worlds: centralized teams and decentralized teams.

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.