DAO investment is an industry trend

DAO-based Decentralized Digital Asset Management Protocol for Web 3.0

DAOs constitute a significant innovation in the space compared to traditional crypto VC investments, and investing in DAOs allows more people to participate in the investment process of early-stage crypto projects. Large VCs or investors have always been able to buy tokens at relatively low prices in the early seed and private placement rounds of a project. After the project goes live, most VCs will sell off for a profit, which can harm the project's long-term development. However, the existence of DAO can neutralize the traditional VC investment dumping phenomenon by providing the opportunity for community users to invest in early-stage projects and gain the benefits of investing in those projects.

a) Ventures DAO makes decision collectively with the “wisdom of crowds”.

A venture's DAO leverages participation from diverse groups of people with varying expertise and backgrounds, collectively providing decisions or solutions. DAO members who are technical savvy may contribute to the technology side, such as the UI/UX design of the website. DAO members with excellent design skills can create artwork for marketing purposes. DAO 8 members with community-building experience can help new projects gain traction.

b) Ventures DAO operates on-chain and fully transparent.

Instead of making top-down decisions from a single leader, DAO members have to communicate effectively and make important decisions through on-chain voting. Ventures DAO uses a multi-sig wallet to safeguard the treasury. Users can trace all the transactions on the blockchain, and multiple tools are available for effective DAO governance.

c) Ventures DAOs participation is more flexible compared to traditional venture capital.

Depending on the protocol framework, any DAO members can withdraw their participation in a DAO freely, while traditional venture capital requires a minimum commitment period.