Dao.fun Analysis: When PartyDAO meets Pump.Fun

Written by: 0xjs@Golden Finance

New concepts in the crypto industry continue to emerge. Over the past two weekends, the VC DAO+Meme+Pump.fun combination concept Dao.fun debuted and attracted industry attention.

In particular, the most popular VC DAO token on Dao.fun is Ai16z, which once exceeded $100 million in market value over the weekend and is now worth more than $52 million.

What is Dao.fun? How does it work? How to create a VC DAO? What VC DAOs are there now? Golden Finance reporter studied Dao.fun, as follows:

What is Dao.fun?

According to social media released by Dao.fun, Dao.fun went online on September 27. From its tweets, we can know that its goal is to create a hedge fund directly on Soalna, lower the threshold for hedge funds, and aim at the democratization of hedge funds.

But this hedge fund focuses on trading Meme coins, "Raise money to trade memes".

According to official information, If you use one sentence to describe Dao.fun, Dao.fun=PartyDAO+Pump.Fun.

After Dao.fun went online, some VC DAOs were established in October, but the highest market value of these DAO tokens did not exceed 100,000 US dollars.

On October 25, the AI ​​VC DAO ai16z, created by the AI ​​agent "Marc AIndreessen" simulating a16z co-founder Marc Andreessen, went online, and the market value of its token ai16z quickly exceeded 100 million US dollars. The popularity of ai16z also led Dao.fun to become popular in the entire industry.

Dao.fun Working Principle

6 Questions to Understand Dao.fun.

1. How does Dao.fun work?

The so-called VC DAO is actually an investment DAO. Since it is an investment, it involves fundraising, trading, liquidation upon maturity, and fund term.

Fundraising:DAO creators have 1 week to raise the required amount of SOL. This financing is a fair issuance of DAO tokens, and everyone can get the same price.

Trading:After the fundraiser is closed, the creators will be responsible for investing the raised SOL into their favorite Solana token, and the tokens will be publicly available on the virtual AMM. This allows the DAO token price to fluctuate based on the fund's trading activity. The DAO token price curve has no upper limit, but the downside is limited by the market value of the fund raise. Investors can sell their DAO tokens at any time as long as the market value of the DAO token exceeds the original fund raise amount.

Fund Liquidation:When the fund expires, the DAO wallet will be frozen and the SOL in the profits will be returned to the token holders. Investors can destroy their DAO tokens to redeem the DAO's underlying assets, or simply sell the DAO tokens.

Fund period:The DAO creator can set it by himself, such as the fund period set by ai16z is 1 year, and it will be liquidated on October 25, 2025; kotopia will be liquidated on October 27, 2025nian; DCG (Degen Capital Guild) will be liquidated on April 25, 2025; Polychain Smoker Capital will be liquidated on January 26, 2025.

2. What is an investment DAO?

A smart wallet with special rules established by the DAO creator to invest on behalf of DAO token holders.

3. Who can become a DAO creator?

Dao.fun adopts an audit system, and Dao.fun needs to review the creators. All creators must be recommended by trustworthy creators.

4. Can investors sell DAO tokens at any time?

As long as the market value of DAO tokens exceeds the original fundraising value, they can.

5. Fundraising period

One week

6. What happens if the DAO creator fails to reach the fundraising target within the fundraising period?

If the fundraising fails, investors can redeem their SOL; otherwise, they can withdraw their funds at a 10% discount.

What VC DAOs are already on Dao.fun?

Currently, there are 30 VC DAOs on Dao.fun, but 2 VC DAOs have not achieved their fundraising targets.

These VC DAOs include those using the names of famous VCs in the crypto industry: a16z, Sequoai Capital, Polychain, DCG, and 3 Memes Capital; those using famous brands: McDONalds Capital, RORSCHACH; those using common Meme names: CAT; those using famous social events: George Floyd, and so on.

All 30 VC DAOs are as follows, sorted by the increase in the market value of VC DAO tokens:

According to the fundraising amount of VC DAO, the VC DAO with the highest fundraising is kotopia, with a fundraising amount of 4206.9 SOL (US$715,000);

The second highest fundraising is DCG (Degen Capital Guild), with a fundraising amount of 1,000 SOL (about US$170,000);