ContinuumDAO Funding Proposal
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Concurred with @0xCTMC โs point that seed and Series A funding round doesnโt necessarily need to be very high; secondary markets will price the project fairly over time, and launching at a lower FDV benefits participants with no access to primary markets. From my perspective anywhere between 15-25M FDV for seed and 50-100M for Series A, depending on traction and market conditions, seems fair (5% seed, 7.5% Series A would be a fundraise of 4.5-8.75M USD)
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Our tech is good, we should offer another round at higher valuation to people who want less unlocking period, we will need to agree with our lead investors for this.
Round doesn't have to be open, just a commitment from them
@toast I strongly disagree with this. I can accept that we need to offer our seed round at a low valuation to attract investors, but if we gave future offerings with a shorter unlock period, then these people could dump on early investors, the existing community and future retail holders. Our veCTM voting escrow contract has a 4 year lock, BUT it allows liquidation with a 50% penalty at the beginning, decreasing linearly to 0 after 4 years. So anyone can either sell their veCTM as an NFT, or liquidate at any time. Meanwhile they have voting rights and their veCTM gives them a share of the profits. This is very fair to anyone.
We need to attract investors who hold our long term vision, even if it means losing some potential investors, who would probably not be the right fit for us anyway. I will vote against any proposal to offer a shorter unlock period for investors.
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Our contributors have been working in the past months and also been rewarded in veCTM valued as $1. I assume with TGE itโs fair to put minimum $2 per CTM for DEX liquidity. VeCTM are locked for 4 years and can get unlocked with 50% penalty. If we sell with low FDV for seed we need extra cliff vesting on top of veCTM. There is no way we want seed and investors dumped on our holders.
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@toast I strongly disagree with this. I can accept that we need to offer our seed round at a low valuation to attract investors, but if we gave future offerings with a shorter unlock period, then these people could dump on early investors, the existing community and future retail holders. Our veCTM voting escrow contract has a 4 year lock, BUT it allows liquidation with a 50% penalty at the beginning, decreasing linearly to 0 after 4 years. So anyone can either sell their veCTM as an NFT, or liquidate at any time. Meanwhile they have voting rights and their veCTM gives them a share of the profits. This is very fair to anyone.
We need to attract investors who hold our long term vision, even if it means losing some potential investors, who would probably not be the right fit for us anyway. I will vote against any proposal to offer a shorter unlock period for investors.
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To secure and amplify the (ambitions of) the community, i'm a strong advocate of providing community members the opportunity to participate in the seed phase as well. If we take the example from Jerry in the opening post: suppose we aim for 200k and minimum ticket size 50k. That's max 4 investors.
Why not split 1 ticket in smaller tickets for community members. With tickets sizes of 50k and up, it will only be the 'big money' that can participate, while i think we need the community members just as much. And therefor they should be able to buy a real stake and become a real part of the project they believe in.
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To secure and amplify the (ambitions of) the community, i'm a strong advocate of providing community members the opportunity to participate in the seed phase as well. If we take the example from Jerry in the opening post: suppose we aim for 200k and minimum ticket size 50k. That's max 4 investors.
Why not split 1 ticket in smaller tickets for community members. With tickets sizes of 50k and up, it will only be the 'big money' that can participate, while i think we need the community members just as much. And therefor they should be able to buy a real stake and become a real part of the project they believe in.
@sanderrrrr Hi sanderrrr, you have a good point! The only reason weโre looking for a few seed investors is because we donโt have to deal with so many investors. Should we break down $50k into 5x $10k? Maybe just a group buy into $50k?
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5*10k gives only 5 individuals the opportunity. I'd say tickets of 1k or 2k with a max of 5k per individual.
Maybe we can use a smart contract for this: if is filled 3 weeks before the seed, it's executed. If it's not, money is refunded and we offer only tickets to VC's. Or we accept the partial funding TBD.
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5*10k gives only 5 individuals the opportunity. I'd say tickets of 1k or 2k with a max of 5k per individual.
Maybe we can use a smart contract for this: if is filled 3 weeks before the seed, it's executed. If it's not, money is refunded and we offer only tickets to VC's. Or we accept the partial funding TBD.
@sanderrrrr I get this. The Community should be have the option to be part of the process. Not sure what the implications are with regards to financial regulations.
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5*10k gives only 5 individuals the opportunity. I'd say tickets of 1k or 2k with a max of 5k per individual.
Maybe we can use a smart contract for this: if is filled 3 weeks before the seed, it's executed. If it's not, money is refunded and we offer only tickets to VC's. Or we accept the partial funding TBD.
@sanderrrrr I think there should be no cap even for individuals. You canโt police who create more wallets. Put a max allocation on each wallet does looks nicer for later. I think we should aim for $5k minimum but we need to add cliff vesting on top of veCTM 4 years lock.
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One of the reasons for offering at a low valuation to VCs in the seed round is that we don't only need their money. We also expect to leverage their network and their marketing reach to help us grow. Frankly, we don't get that with small retail investors. We also have to conduct KYC, which at this time is simply a burden to us. I'm not in favour of a retail offering at this point. There is a way for the community to get veCTM now though and that is to contribute.
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5*10k gives only 5 individuals the opportunity. I'd say tickets of 1k or 2k with a max of 5k per individual.
Maybe we can use a smart contract for this: if is filled 3 weeks before the seed, it's executed. If it's not, money is refunded and we offer only tickets to VC's. Or we accept the partial funding TBD.
Hey @sanderrrrr,
The forthcoming rounds should exclusively cater to institutional investors. This strategy prioritizes project growth by allocating resources sensibly towards protocol development. Permitting non-institutional funds to participate in early rounds would unjustly disadvantage potential community members who haven't had an opportunity to engage in discussions yet.
The figures provided in the examples represent various stages of the seed round and are not finalized offers. There is still room for individuals to contribute their thoughts in the comment section. -
You can also argue that the other way around: why give big money priority again over community members who also support the project? This is also an opportunity to do things differently, more democratically and give everyone who is now involved an equal chance. There must be something that we together can be done about this, if the will is there.
That potential community member can't profit from this, is an argument i don't understand. I mean, potential VC's that haven't heard from the opportunity yet - Are they then disadvantaged now by your suggested approach?
IMHO it makes sense that community members and VC's that are not aware of the project, are not involved and of course they can't step in now at this valuation. That is fair. If they step in later, there is less risk, price will be higher.
Community members that are already involved now, already take higher risk by putting effort in an early stage project. But following your suggestion they can only step in at higher price. That does not seem fair to me.
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So I know development has been paid for pretty much so do we propose a kind or pro-rata offering based on community members moving forward or has this been factored in from the beginning alongside the initial proposal to allocate veCTM based on veMulti holdings? It there going to be some kind of proposal for what is fair entry and compliant entry for the community?
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So I know development has been paid for pretty much so do we propose a kind or pro-rata offering based on community members moving forward or has this been factored in from the beginning alongside the initial proposal to allocate veCTM based on veMulti holdings? It there going to be some kind of proposal for what is fair entry and compliant entry for the community?
@chookz The forthcoming proposal will be for a VC seed round only. That is what we will be voting on. We had an airdrop for early supporters already, based on anticipated community effort (a lot of people did nothing however) and there will be a further airdrop to MultiDAO based on veMULTI holdings. The only way right now for anyone to get more veCTM is by actually contributing to our development through the Guilds, by coding, marketing etc. You have to work to get veCTM.
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@chookz The forthcoming proposal will be for a VC seed round only. That is what we will be voting on. We had an airdrop for early supporters already, based on anticipated community effort (a lot of people did nothing however) and there will be a further airdrop to MultiDAO based on veMULTI holdings. The only way right now for anyone to get more veCTM is by actually contributing to our development through the Guilds, by coding, marketing etc. You have to work to get veCTM.
@Selqui Then this thread was not a DAO discussion, but more like a top-down announcement.
I'm OK with both, but then let's call it what it is.
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Ok let's get the proposal going but at the same time I think we need to make more effort in outlining what the next steps in the process are vis-ร -vis the guild contributions and marketing. It would be nice if we can get the overarching framework for delivery agreed on so we are all aligned on who's doing what when.
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Greetings, ive been absent for a while; I agree the project ethos is to be a Decetralized DAO; so it should be structured that way. I am not up to speed with these funding strategies but i agree with a more conservative approach and organic growth. Make some good partnerships and demonstrate the product through actions before giving away the farm...
Further, I am interested in contributing where i can; i was running nodes for Anyswap/Multi and am interested to learn more and help secure the network(s). Are there Network schematics and updated road-map available? How can i help?
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S Selqui moved this topic from Ideas & Suggestions on
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