Proposal: Financing Working Group proposal

General
1

Hi guys.

I am excited to announce that LXDAO has successfully passed Stage1, and we are ready to move forward with Stage 2!

However, as our self-funded treasury is running out soon, we must raise additional funds and resources to support the growth of LXDAO. With this in mind, I propose the formation of a Financing Working Group from the community to help us achieve this goal.

Title: Financing Working Group

Author: Bruce

TL;DR

Our self-funded treasury for Stage 1 is running out soon, and we need to raise funds for LXDAO’s growth in Stage 2. This will be a temporary working group focused on raising money for LXDAO.

Proposal Description

Goals

Our goal is to design appropriate funding plans and targets for LXDAO’s Stage 2 growth and achieve those targets.

Working details

  • Design funding goals based on our needs
  • Create the financing deck
  • Buidl connections with potential investors and presenting our project
  • Follow up on the progress and feedback
  • Raise enough funds

Team settings

  • Leaders: 1 or 2
  • Assistants: 2
  • FAs and consultants: unlimited

Leaders will handle day-to-day management and coordinate the progress of the entire Financing Team. They will play a core role in presenting LXDAO to potential investors and should have strong English skills. They must also have enough time to devote to this initiative and be able to prepare legal files.

Assistants will support the Leaders in organizing meetings, managing investors, following up on feedback and progress, taking meeting notes, reviewing investment tables, and recording PoC. They should also have strong English skills and enough time to devote to this initiative.

Financial Advisors and consultants will be unlimited and will help refer to appropriate investors or secure funds. Their contributions will be recorded by the assistants.

Rewards

  • Financial Advisors and consultants will receive a 1.5% reward for each source they refer to.
  • Leaders, Assistants, and active consultants will receive 0.5% of the total funds raised, as well as 5000U and 5000LXP from the rewards pool based on PoC.

This is a fixed amount of money, and the sooner we close the financing round, the sooner we can receive these rewards. The more funds we raise, the more we can offer in rewards.

Key Results

Our primary objective is to meet our fundraising goals and collect enough funds to support LXDAO’s Stage 2 missions and tasks as soon as possible.

1 Like
2

That’s an excellent proposal to elaborate on the details of the fundraising working group and how to reward each member according to his/her contribution.

But there are a few things that need to be addressed as follows,

  1. SAFT either provided by the VCs or LXDAO is an important legal document, it has to be prepared or reviewed by someone who has legal background or relevant experience. Someone who help with it should be rewarded accordingly.

  2. Who will be the representative of LXDAO DAO to sign the SAFT?

  3. Does the assistant has the duty to attend the pitch session and answer questions from VCs?

  4. Should we specify the total fundraising amount for this round?

  5. “the sooner we close the financing round, the sooner we can receive these rewards” Due to the bearish market, the fundraising period could be bumpy and long, I suggest the rewards could be given in a more prompt manner instead of closing the whole round, in order to incentive the working group to work harder and achieve our goal sooner.

1 Like
3

That’s a great question. At the moment, we don’t have anyone with a legal background on the team, but we can offer rewards for filling this role. It’s possible that 8DAO may have some legal experts, so I’ll reach out to them for assistance.

For simplicity, co-initiators can be representatives of LXDAO to sign the SAFT at this stage. Mostly me. So I’ll put my information in the proposal, and see if someone wants to go against it. Later, we might design a legal structure, and I’m happy to transfer the authority if needed.

Absolutely, assistants should attend the pitch session to take meeting notes, follow up with VCs, and answer any questions they can, but they are not required to make the actual presentation.

At the moment, our fundraising goal is to secure 1.5MU to support our operations for the next two years. However, depending on the circumstances, this amount may be subject to adjustment.

That’s a great point, and I completely agree with you. We should distribute the FA rewards as soon as possible after the DAO treasury receives the funds, at the DAO payday. As for the bounty pool, I suggest we create milestones to distribute rewards accordingly. For instance, we can distribute 1/3 of the bounty pool when we reach 50% of the fundraising goal, and then the remaining 2/3 can be distributed when we reach 75% and 100% of the goal, respectively.

Actions:

  • Add more rewards for legal consultants
  • List LXDAO representatives on the proposal
  • Specify the total fundraising amount
  • Better rewards-sharing plans
4

Proposal: Financing Working Group

Title: Financing Working Group
Authors: Bruce
Editors: Bruce, Tracy, and Sally
Date Created: 2023/04/10

TL;DR

Our self-funded treasury for Stage 1 is running out soon, and we need to raise funds for LXDAO’s growth in Stage 2. This will be a temporary working group focused on raising money for LXDAO. There is no fixed duration for the Financing Working Group. This group will be dismissed when reaching the funding goal.

Proposal Description

Goals

Our goal is to design appropriate funding plans and targets for LXDAO’s Stage 2 growth and achieve those targets.

At the moment, our funding goal for Stage 2 is 1.5 MU to support our operations for the next two years. This amount may be subject to adjustment depending on the circumstances.

Working details

  • Design funding goals based on our goal
  • Create the financing deck
  • Buidl connections with potential investors and presenting our project
  • Follow up on the progress and feedback
  • Prepare SAFT and legal files
  • Raise enough funds

Team settings

  • Leaders: 1 or 2
  • Assistants: 2 or 3
  • FAs and consultants: unlimited

Leaders will handle day-to-day management and coordinate the progress of the entire Financing Team. They will play a core role in presenting LXDAO to potential investors and should have strong English skills. They must also have enough time to devote to this initiative and be able to prepare legal files.

Assistants will support the Leaders in organizing meetings, managing investors, following up on feedback and progress, attending the pitch session, taking meeting notes, answering questions, reviewing investment tables, and recording PoC. They should also have strong English skills and enough time to devote to this initiative.

Financial Advisors and consultants will be unlimited and help refer to appropriate investors or secure funds. Their contributions will be recorded by the assistants.

Duration

Flexible duration

Rewards

We adopt an incentive system

Financial advisors and consultants will receive a progressive incentive based on the amount:

  • For amounts >= 10K, they will receive 0.5% of the amount
  • For amounts > 10K and <= 50K, they will receive 1% of the amount
  • For amounts > 50K, they will receive 1.5% of the amount

For example, for a deal of 150K, the financial advisor will receive 10K x 0.005 + 40K x 0.01 + 100K x 0.015 = 1.95K.

Leaders, assistants, legal consultants, and active consultants will receive 0.5% of the total funds raised and an extra 8000U + 4000LXP from the rewards pool based on proof of contribution.

Rewards will be distributed based on funding milestones. One-third of the rewards will be released upon reaching 50% of the goal, another one-third upon reaching 75% of the goal, and the final one-third upon reaching 100% of the goal.

Questions

Who will be the representative of LXDAO DAO to sign the SAFT?

For simplicity, co-initiators can be representatives of LXDAO to sign the SAFT at this stage. Mostly BruceXu. Later, we will design a legal structure, and Bruce will transfer the authority. Please vote against it if you don’t agree or have better ideas.

Key Results

Our primary objective is to meet our fundraising goals and collect enough funds to support LXDAO’s Stage 2 missions and tasks as soon as possible, We will provide weekly and monthly work reports

5

What is the duration of the financing group?

6

Good point, I’ll add to the proposal, the WG will be stopped when reaching the funding goal. So, won’t be a fixed duration.

And we will brief the community on progress weekly.

7

I think it is reasonable to say that the duration is not fixed, but that a summary report needs to be presented according to a time cycle

1 Like
8

I think it is a good idea, I still have some doubts about the proposal reward setting, I see that the reward setting is issued according to the proportion of the financing amount, and it is a target system, there is no fixed monthly salary is it?

9

That’s right, there is no fixed monthly salary for this position. I think this might incentivize team members to try to raise funds as soon as possible.

10

I’d suggest a higher commission for the FAs involved. For early investment, considering the risk, the market percentage of commission is around 5%.

1 Like
11

usually, FAs charge 3% for u or 5% for tokens. we can set this as the upper limit and set deals case by case.
also, still have concerns about what kind of VCs would input >10k. I asked some VCs before but they only invest in investment DAOs for deal flows. The problem is most DAOs don’t have guaranteed revenues, which is also our situation.
I’d suggest that we set a timeline for fundraising through VCs, ie half a year. If it turns out to be hard to raise money in this way, we would need to figure out another way. Otherwise, we won’t have adequate runway to scale.

1 Like
12

You are correct. We could set an upper limit and deal case by case for FAs.

Yeah, DAO is out of fashion nowadays. And not many VCs like it. Some VCs might be interested in the LXDAO R&D power. They need a project pool to invest in, especially early. Some of them might be looking for some buidler community for their ecosystem.

And most important thing for us is to continue building and find the project that can attract more funds or buidlers into LXDAO. It’s hard, but just keep moving.

Yeah, we should set a timeline for fundraising through VCs, 6 months makes sense. Also, prepare other ways like crowdfunding, selling NFTs, issuing tokens, etc.

13

I have heard we may have to create a “company” with limited liability to get the investment for the next stage. This has become a concern of mine.

As far as I know, the entity of a limited company is far different from a DAO. There will be a gap between the company and DAO on governance, regulations and taxation, which requires more paperwork to make sure the company and the DAO are solely bound and the current governance by community is applicable to the company.

I wouldn’t see a shadow company of DAO as a bad idea, but I’d consider this is a strategic decision for the future of the DAO because once this is done, there will be no way to revert.

Below questions should be thought twice:

  • Is a proposal required for the creation of the company?

  • Is this a requirement from the investor? If yes, are they really a web3 investor for DAO?

  • Is it possible we run the DAO as a DAO? Is unlimited liability a problem for a DAO or the nature of a DAO?

My 2 cents.

2 Likes
14

Good questions. I will create a new topic for DAO’s legal structure discussions. Easier to present to our legal consultants to advice.

15

个人建议：Dao与公司，匿名与实名，兼职与全职，线上与线下，自已融资与项目贡献回报，中国与全球，短期与长期，特别是去中心化与中心化，应该可以兼顾并且必须兼顾。区块链非此即彼的机械还原论一定会被辩证统一的唯物主义哲学思想替代。美国前三名的Defi项目，都是先有公司，后来有了风险投资，慢慢发展壮大，又改为Dao运作。LXDAO一开始是DAO运作，至于后面如何发展，只要把握住马克思主义真理，自然而然会开辟出一条崭新的道路。我们一个项目，如果LXDAO确实能够调动全球资源，把它落地，王健林最小目标应该可以实现，正常来讲剩以10也是有可能，稍微运气好一点，最小目标剩以100都完全有可能，LXDAO有这笔贡献基金和一个经典案例，后面发展就豁然开朗。我个人通过一个星期阅读了LXDAO部分帖子，比较了国内国外同行DAO，初步得出结论：LXDAO华人团队正全面超越甚至碾压欧美旁氏团队！结合最近与万物岛投资人的沟通，以及中国CBDC全面领先国际同行落地的超强体验，从我个人Web3第一线奋斗数年的经历来做个判断：全球Web3很有可能由中国团队来领导并实现大规模落地。至于LXDAO融资，邀请几个投资人顾问，甚至可以整合全球加密基金DAO作为LXDAO的builder，瓶颈可以轻松解决，全球加密基金数量远比项目数量多，货真价实的项目方应该是买方市场。

再说点题外话，我个人建议中国团队要有理论自信和道路自信，维克特林只是一个技术极客，不应过于迷信，区块链核心技术二十年前就有，真正改变世界还是需要像乔布斯马斯克这种复合型有哲学思维的企业家（乔布斯不是科班出身，IPHONE技术全部都是别人的，马斯克比乔布斯懂技术，但也都是自学半路出家，但他们更懂哲学）。咱们抛砖引玉一下，当年爱因斯坦与波尔关于量子力学世纪大战，争论了一百年，波粒二象性，量子纠缠幽灵最终还是不得不投入辩证唯物主义马克思哲学的怀抱，在我个人看来，如果马克思和爱因斯坦同年代出生，马克思估计都不屑跟爱因斯坦探讨量子力学。从我个人创业经历来看，我越来越不关心以太坊某些稀奇古怪故弄玄虚的叙事，区块链技术再复杂高深，应该也不会超过爱因斯坦波耳的宇宙大统一理论，绝对的去中心化与绝对的中心化对立本身就是伪命题，那是唯心主义的世界观和方法论。以我们项目为例，其实只需要实现几个小小的目标就足够伟大，其他的我们并不关心：1）高频交易用CBDC中心化模型，速度快，gas费用为零，或者用接近半中心化的公链比如Sui（大把的公链和L2荒废没人用啊，还要什么gas费用啊）；2）DAO治理，低频应用场景，公链任意选；3）苹果谷歌微软脸书阿里腾讯这些伟大的公司90%股权被大财团中心化垄断，跟用户利益没有半毛关系，我们只需要拿30-40%货真价实的股权（根本不需要也不可能100%去中心化，否则就是乌托邦）分享给真正为公司创造价值的利益纠关方比如经销商制造厂商和意见领袖，就足以证明区块链通证经济真正落地；4）公司DAO治理让LXDAO承包，出让一部分利益，只要某些不适合完全去中心化的比如核心战略，公司有一票否决权，其他的适合去中心化的比如流行趋势把握（商业的核心），完全交给自组织，100%去中心化。华为全员持股，但任正非某些场景下有一票否决权，本质没有任何矛盾。

最后，我们思维再稍微跳跃一下，如果以太坊完全按照华尔街的思路，只围绕金融衍生品零和博弈游戏规则制定路线，我个人认为Web3没有未来（RWA叙事宏大，本质还是零和博弈，也许华尔街传统的玩腻了玩不动了，变个法子在区块链上再玩一次）。美国团队或者说华尔街好像除了金融衍生品其他都没有兴趣（坦率讲，欧美实体经济衰退肉眼可见，也许欧美团队的视野和能力也严重衰退，某种程度已经丧失了干脏活累活的动力和能力），这严重违背了通证经济人类命运共同体的第一性原理。我个人越来越觉得马克思辩证唯物主义哲学思想，中国的人类命运共同体理念代表人类发展终极方向。纯粹颠覆性技术创新，我个人还是认为欧美骨子里有优势；但世界观，价值观，方法论，以及人类文明终极命运何去何从，中国越来越走在正确的道路上，这难道不是中西方文明阴阳图腾互补，去中心化与中心化的辩证对立统一吗？