The advantages of investing into projects with DAO.vc extend into the basic nature of investing with all of its primal rules and strategies.
First advantage – By having a low amount of capital of as little as $1, users can invest like market participants having over $1,000,000 via the creation of a common pool of contributors acting as token holders. This approach will allow users to:
- Save on transaction fees (gas, other miner fees, masternode operators and others);
- Receive bonuses for large investor (pool) participation;
- Obtain proper product diversification.
The given advantage automatically solves several important problems existing on the market:
- Technical problems of services, because DAO.vc by definition contains numerous independent testers.
- Economic problems via primary express-analysis of projects, direct voting of participants, and constant updates of anti-fraud systems.
- The first classic DAOs were built on complex and convoluted algorithms, which are not easy if not impossible to change, leading to failures, such as the infamous The DAO. Am ad hoc approach allows to make the system more flexible and remain true to decentralization by voting and other measures within the adopted consensus.
- The platform will negate the need to trust the creators of chat rooms, groups and other organizations, as the distribution of possible gains/losses is based on algorithms and smart contracts.
Second advantage – Instead of conducting extensive and exhausting searches of projects worthy of investment, the DAO.vc platform will provide short lists of verified projects. In turn, the list itself may be divided into the following components:
- Wish-list – a queue of projects considered (accepted, verified) for voting.
- White list – projects considered and approved for voting.
- Voting list – projects that can be voted on at the moment.
- Stop list – a list of scam projects, suspicious services and other untrustworthy products, platforms and startups.
Third advantage – Users do not have to restrict their investments to the DeFi sector. An analysis of various swap protocols and exchanges like the Kyber Network, Bancor, Uniswap, AAVE and others, allows to identify their weakness – they have no direct access to new assets, products, start-ups. DAO.vc solves this problem, as any startup, product and asset can be voted on (after the release of the Service). The main thing is the support of the community.
As such, the given advantages addresses issues such as:
- The anonymity or pseudonymity of pool participants, which is hardly possible in areas where KYC procedures are requirements by default.
- The improvement of transactional reputation through proper voting, helping analyze projects, offering bounty program activities, and other incentives that help DAO.vc develop.
- While ICOs were born in 2013 and IEOs in 2015, the hype of the former landed on 2017 and the latter in 2019. There were, are and will be many different options for raising seed capital: ITO, TGE, ILP, DeFi, NFT swaps, WHO, IFO, etc. As such, it makes no sense to focus only on DeFi and close other avenues for DAO.vc to progress.