DAOs & Funds, What’s the Difference?

Hey everyone! How’s your week going? Today we’re talking all about DAOs!

Check out my video, “DAOs vs Funds!”

DAOs became popular mid-2021 because of rates as high as 10,000% APY (some of the biggest DAOs are Uniswap, AAVE, and Curve).

What’s a DAO?

In basic terms, a DAO (decentralized autonomous org.) is something that issues tokens that a person can buy. When purchased, the money goes into a treasury where it’s controlled by a smart contract.

That smart contract decides how every piece of the DAO will work. Most DAOs have a thesis, or what will be done with the money.

Then that money is used to buy something, like a golf course or the Denver Broncos, and everyone that has a token will then own a fraction of the product.

You may be asking, “Wait a minute, doesn’t this seem like a regular fund?”

The biggest difference is that a DAO has a smart contract!

DAO Fraud

Some people may be able to buy more than one token. If someone were to buy 51% of a DAO, they get to decide what happens with the DAO – they have the votes.

On my channel, we share how to manage a fund without getting thrown into jail by the SEC!

To stay out of trouble…

  • Don’t forget that the SEC still cares about laws concerning crypto and DAO!
  • Don’t solicit non-accredited securities
  • Do KYC (know your customer) and AML (anti-money laundering) checks on all potential holders of your DAO

Like I said in my video..

“DAOs will absolutely revolutionize the way money is raised and moved around the world.”

“But Bridger, will DAOs compete with funds? Are funds going to die?”

… No, the principles of raising capital and funds are the same.

“But Bridger, should I do a DAO right now or a fund?”

… If that directly benefits your capital raise, and you have a great marketing and engineering team behind it, then sure. However, be careful because veteran investors may not trust your DAO pitch.

Good luck!

And that’s it for today, let me know if you have any questions!

Bridger Pennington

Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!

DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.

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