Venture capital has, for years, been an exclusive world governed by billion-dollar corporations and heavily gatekept. However, even the world of venture capital has been given blockchain treatment in the last decade, with the rise of tokenization and blockchain-based venture capital initiatives.
One of such initiatives is DAO venture capital, which leverages Decentralized Autonomous Organizations to make venture capital investments. Despite the innovation of such a concept, there have been pitfalls along the way, mainly in terms of operations capabilities.
This issue and more are taken head-on, however, by a new project called 420 DAO.
What is 420 DAO?
Despite what the name might suggest, 420 DAO isn’t merely a DAO venture capital fund. It is also an organization that fulfills three major functions: building decentralized applications (dApps), investing in worthwhile crypto projects, and governing its own ecosystem.
420 DAO is also tackling the age-old issue of operational capabilities of DAO funds through what it calls its operational budget. This budget is just one part of 420 DAO’s financial setup, which has its native 420 token at its center.
How this works is that users buy the token and can then stake it for rewards. These include traditional staking rewards and harmonial rewards from whenever another staker decides to leave. The staking reward is 220,000 divided among the stakers according to the staking ratio.
Tokens also serve the purpose of acting as membership access as well as securing voting rights which is a major component of DAOs. The value of the 420 tokens is, naturally, tied to the assets that are being invested in by 420 DAO. The 420 DAO tokens will be made available to users through daily auctions which begin in February 2022. The price of the tokens will depend on the supply on each auction day, though more tokens can be gotten through staking. The auctions will be held on 420 DAO’s app, which will be launched in February 2022.
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