DAO Fund Litepaper

DAO tokens represent a managed pool of invested cryptocurrency.

The growth of the DAO token is directly proportional to the success of the DAO fund.

Tokenomics

Total of 100 million DAO tokens.

The sale price of DAO Tokens from the DAO Fund is calculated with the formula X divided by Y times 1.04 = Z

X

being the USD Value of funds held in the DAO Fund.

Y

being the Amount of Dao Fund Tokens in circulation.

Z

being the sale price of DAO Tokens.


The DAO Fund places buy orders on the Waves Exchange at exactly 8% less than the current sell rate. This means you take an 8% loss when exiting the DAO fund. This 8% loss becomes the gain for everyone remaining in the Fund, so when users sell the DAO Token back to the DAO Fund, the value of DAO Tokens increases/

100% of the funds (minus necessary transfer and conversion fees) used to buy DAO tokens from the DAO Fund are placed into a managed cryptocurrency portfolio.

 

The DAO Fund is designed to minimize risk and volatility.

During periods where the DAO token value grows substantially, a portion of the growth is held in the reserve fund. The reserve fund is liquidated during periods of DAO token loss to reduce drawdown and to increase stability.

The DAO Fund takes a daily percentage of the fund to pay for management. The rate taken reduces with the amount in the fund. The fee for the first 300k managed is 0.05%. The fee for 300k-500k is 0.04%. 500k-1m is 0.035%. 1m-2m is 0.03%. 2m-3m is 0.025%. 3m-5m is 0.020%. 5m-10m is 0.019%.

The defi leveraging platforms we utilize are audited by multiple firms such as Techrate, Rug Doctor, and Solidity Finance. The majority of our fund holdings are located inside of major leveraging platforms with over 100 million USD in currency staked. The well known “Master Chef” smart contract code is the baseline for all of our platforms of choice and several billion dollars in combined currency is currently invested in this particular smart contract code across hundreds of platforms. 5% of the fund spent on high risk markets is insured and drastic losses are reimbursed by the Universe Ministry.