Let’s re-build how we capitalize new ventures. The journey to build a new, permissionless Silicon Valley for the Web3 begins with The LAO.
🚀THE LAO IS LIVE TODAY!🚀
Get approval here and then register in a matter a few clicks! https://t.co/bEFS14SEpM
— 👾 (@TheLAOOfficial) April 28, 2020
With a strong focus on allowing members to pool capital and invest in cutting edge projects in a legally-compliant manner, the LAO is poised to disrupt the future of fundraising using smart contracts and DAO tooling. Built on the MolochV2 framework, theLAO comes jam-packed with a suite of exciting features that we’ll describe below.
“The LAO aims to push Ethereum forward by making it possible for people to pool ether into a common fund and invest that ether in hopes of making a profit”
The notion of a for-profit DAO is one that has been touted for some time. However, few have been launched with as much grace and consideration as the LAO – leaving them well suited to actively invest in a suite of Ethereum projects with the confidence that they will not face legal ramifications in doing so.
For those keen to get involved with the LAO, there are a few things to keep in mind:
- US investors must be accredited to participate.
- TheLAO is limited to 100 total members
- The minimum tribute is 120ETH, roughly $25k at the time of writing
- The maximum tribute is capped at 1080ETH, or 9% of total voting power
- 120ETH pledges entitle a holder to 1% of the LAOs voting rights and profits
- There is a 14 day processing period to join (7 days for voting, 7 day grace period)
Beyond the financial aspects of getting involved, the LAO offers a suite of benefits including a mentorship program from Ethereum thought-leaders.
“I love how the LAO is positioning itself as the YCombinator of Ethereum. Excited to see what startups come out of this as the best founders thrive in chaotic macro scenarios like the one we’re currently going through.”
In an interview with CoinDesk, leading members of the LAO describe the membership program more in-depth, stating that it could range from one-off marketing campaigns to pro-bono advisory or possible equity deals. The great thing about theLAO is that these deals can be brokered in a trusted, compliant environment, rather than the Wild West days of hiring “experts” off ICOBench.
— CoinDesk (@CoinDesk) April 21, 2020
DAOs Meet Twitter
Perhaps one of the most novel aspects of the LAO is their newly launched TheLAOScout – a Twitter account that allows the CT community to propose new projects to the LAO to consider for future investments.
Once nominated, projects have the ability to accept the nomination by interacting with theLAOScoutBot – effectively onboarding to a community-ran token curated registry all without ever having to leave Twitter.
Once on the registry, anyone can challenge existing listings or vote to keep them on the list when challenged. What emerges is an ongoing archive of top projects which make it easier for the LAO to do what they do best – empower projects with capital from a trusted, professional network of members with a strong understanding of how to successfully launch a web3 product or service.
The Bigger Picture
With the launch of the LAO, we’re continuing to see an emerging trend of projects using DAO structures to further optimize decision making in a distributed manner.
Just a few months back, we saw the launch of MetaCartel Ventures – another for-profit investment DAO geared at empowering the Etheruem ecosystem with community-driven funding.
This week, we saw the launch of Everest – a decentralized registry for the ecosystem’s top projects being touted as the Crypto Crunchbase.
Tying these two notions together, it’s evident that the rapidly evolving Ethereum ecosystem is becoming more cohesive by the day. With different projects spawning to aggregate, vet, govern, and fund exciting ideas, Ethereum continues to show why it’s the leading smart contracting protocol in the wider cryptocurrency landscape.
We’re quite keen to see where theLAO allocates its first investment and will be sure to report on anything worthwhile right here at DeFi Rate.
To say up with the LAO, follow them on Twitter!
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.