Thread by @xdaoapp

1/ We have published a new detailed article on the advantages of a DAO for investing purposes.
It will also shed light on existing investment DAOs.
Brief summary you can read in the thread🧵
blog.xdao.app/xdao-for-inves…

2/ The main difference between an individual investor and a fund is access to the treasury. Obviously, the second one can provide more money for a greater variety of projects and minimize risk.

3/ DAOs are the solution. They bridge the opportunity gap between retail crypto investors and venture capital/investment funds (and also between retail investors and the projects they invest in).
DAOs also give you a huge variety of investment opportunities.

4/ In the figure below you can see the types of DAOs, the rules of the treasury formation and profit distribution mechanisms.

5/ It's important that DAOs may differ in the following: voting power given to participants; the formation of the DAO treasury; the subject of investment; the rules of profit distribution. Based on this, we can distinguish several types of DAOs.

6/ Friends&Family DAO. All DAO members have the same voting rights on investment decisions.
Joint Investment DAO. All DAO members have voting rights on investment decisions.

7/ Mutual Fund. An analogue of traditional finance’s mutual funds, operated by professional money managers.
Syndicate DAO. Members pool their money in DAO and invest; usually once. When the investment returns, the syndicate closes or enters into a new deal.

8/ Venture DAO. Similar to a Syndicate DAO, but after entering a deal at an early stage, the blockchain connection is often broken by the investment object (since the entry takes place in SAFT or other paper document); requires reliable managers, whom DAO participants will trust

9/ Collector DAO. Operates in the field of NFTs & Metaverses. This DAO collectively owns NFTs — art collections, memes, lands, gaming items, etc.

10/ After determining your DAO type, the next vital stage is providing liquidity. The significant advantage of XDAO is the possibility to hold and manage all cryptocurrencies, provided by LP holders, for collective purposes. LP holders can be DAO members or external investors.

11/ Last but not least, DAOs on XDAO can interact directly with all DeFi protocols through Wallet Connect. Thus, you can make collective financial management decisions and be sure your finances are secured from theft by intruders. 🙌