The barriers to raising capital for any person in the world, regardless of their situation in life is being eroded. Anyone with internet accesss is able to create an Eth address and issue tokens in return for tokenised contributions. Soon this process will be fully automated; opening capital markets to people without specialised blockchain knowledge. These new financial markets will continue to grow.. as barriers continue to be removed.
Launching tokens over uniswap has many issues; front running, order rematching , MEV and ofcourse price slippage.the next evolution for decentralised launches has seen the rise in IDO platforms; ensuring the fair distribution of tokens at a fixed price for retail and providing a type of centralised "quality control" over launches
Problem:
Many of these IDO platforms share common inefficiencies..
- fair market price for public sale are seemingly arbitrarily assigned. often projects raise far below market valuation.
- confidential lottery draws with no verification
- token distribution is limited to closed off VC channels
- the IDOs themselves are walled off communities and not aggregated
- automation of raises is not available
Solution:
the creation of on-chain fund raising "vending machines" will considerably reduce barriers, increase transparency , aggregate buyers and sellers and remove operational overheads to an IDO platform. Aswell as creating a market determined price for the public raise, the tools for which are described below.
- auction lottery (NFT)
- english auctions
- dutch auctions
- fixed rate swaps....
^^ giving projects the freedom to select how they want to public raise. (Private allocations will remain private or OTC)
As a consequence of removing barriers to launching a DAO there will be scams occuring. This is mainly due to the lack of gatekeepers and proffesional vetting. To address this issue, I propose the use of community valuation and attestation (collatoralised through staking by the appraiser), acompanied by account verification. Verified community appraisers and recognised VC can earn followers and reputation scores. the history of their attestation stakes and investment history verified onchain. allowing people to "copy invest".
leaders to register onchain accounts and issue their own NFTs to people that want to be members of their community