Hey everyone! How’s your week going? Today we’re talking all about DAOs!
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!
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?”
And that’s it for today, let me know if you have any questions!
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.