Thursday, December 1, 2022
HomeDeFiFormer Polychain partner starts USD 125 million crypto fund to make DAOs...

Former Polychain partner starts USD 125 million crypto fund to make DAOs more efficient

Tekin Salimi, a former general partner at Polychain Capital, has launched DAO-5, a $125 million crypto investment fund that will seek to offer early-stage funding for startups in a number of cryptocurrency sectors.

According to a statement issued on Wednesday, DAO-5 will commit to pre-seed and seed-stage investments in verticals like privacy technology, decentralised finance (DeFi), non-fungible tokens (NFTs), Decentralized Autonomous Organizations (DAOs), and Layer 1 blockchain infrastructure.

Emin Gün Sirer, founder of Avalanche, and Do Kwon, CEO of Terraform Labs, will serve on the advisory board. Moonpay creator Ivan Soto-Wright is on the board, as is Ben Fisch, a computer science professor and the founder of Espresso Systems. CoinShares chief strategy officer, Meltem Demirors, is also on the board.

While DAO-5 began as a crypto fund, Salimi believes it will ultimately evolve into a full-fledged DAO. As a result, anytime DAO-5 invests in a project, the project’s founders will receive governance tokens for the future of DAO-5.

According to the statement, the token grant is an important aspect of the DAO’s long-term objectives. The token grant ensures that projects receiving DAO-5 investments have economic exposure to other businesses in the fund’s portfolio, implying that DAO-5 project founders will be encouraged to work for the benefit of the DAO collective. This alliance intends to act as a type of risk diversification while also adding value to the DAO-5 initiatives.

The DAO-5 crypto fund will ultimately become a complete DAO around 2025. According to the statement, the three-year transition period would provide the DAO enough time to develop a strong token and governance architecture.

According to the statement, this tokenomics and governance approach will concentrate on aspects aimed at encouraging participation and providing simplified incentives.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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