Bankless VC DAO aka Fight Club Proposal

[tesa_daa]

Bankless Fight Club Proposal

Title: Bankless Fight Club Proposal

Authors: @pilkster @fi_bo @elno @fin4thepeople @kahuna

Squad: #fight-club, champion @tesa_daa#9745 @LiveTheLifeTV#5415

Date Created: 8/20/21

Date Posted: 8/20/21

SUMMARY

The Bankless Fight Club (“Fight Club”) is an investment DAO that aims to operate similarly to The LAO or MetaCartel Ventures. The goal of the Fight Club is to return value to the Bankless DAO by creating:

1. An Education Program that will train any willing Bankless DAO member to evaluate projects as a financial analyst.
2. A way for the Bankless DAO Treasury to diversify its holdings and earn revenue from service provider fees.
3. A demand for Bankless DAO guild services as Fight Club invested projects can utilize the Bankless DAO guild expertise.

Based on initial poll results, Fight Club is considering a US and a non-US version to maximize member participation. Fight Club will have tiered memberships that will require varying levels of BANK tokens to be either staked or locked up in a liquidity pool. Fight Club investor members will pay an annual service fee that will be directed towards Bankless DAO guilds for services rendered and the Bankless DAO Treasury.

BACKGROUND

The original proposal was based on several ideas discussed within the Bankless DAO forums including but not limited to: 1) Alpha Wallet by thegoodnunes.eth, 2) Angel Investing Platform by tesa_daa, 3)Accredited Opportunities Above Average Joe, 4) UberDao by Yves, 5) Syndicate DAO by gecko007, and 6) Metacartel by grendel.

Fight Club aims to monetize the alpha generated by the Bankless DAO media platform and the expertise of the Bankless DAO members for the Bankless DAO treasury. Projects that the Fight Club invests in will also utilize the Bankess DAO media services providing job opportunities for Bankless DAO members. In addition, the Fight Club Education program will allow Bankless DAO members to gain financial experience analyzing companies.

MISSION & VALUES ALIGNMENT

The Fight Club project helps BanklessDAO achieve its mission through:

1. Inclusiveness and Education

Education is offered to any member of the BanklessDAO who may be interested in Venture Capital investing, whether they wish to participate in the Fight Club or not. Members of the Fight Club must complete certain quests to enable roles. These quests help Members level up their knowledge. The Education Program will be tailored to help people wishing to take the Series 65 Exam to gain US accredited investor status.

2. Support of the DeFi and Web 3 ecosystem

The Fight Club investment thesis broadly supports the DeFi and Web 3 ecosystem. Investments are made using ETH, DAI, or other decentralized money.

3. Revenue Generation

Investors of the Fight Club will pay an annual service provider fee to the Bankless Treasury.

4. Increases the Utility and Liquidity of $BANK

Investing members of the Fight Club must hold a minimum number of $BANK utility tokens. These tokens are subject to a minimum lock-up, either via staking or through a liquidity pool, and must remain locked for the duration of the membership in Fight Club. This will also provide more liquidity for $BANK

5. Treasury Diversification

BanklessDAO members may wish to purchase $BANK in order to become investing members of Fight Club. They could purchase these $BANK tokens directly from BanklessDAO Treasury.

Fight Club has had discussions with Treasury and is able to provide support for any future token sale event.

SPECIFICATION

The operational logistics of the Fight Club are similar to a normal DAO and are predicated on the following factors:

Jurisdiction and Legal Structure

In order to accommodate the global diversity of Bankless community members, there will be two separate legal entities - one for US investors and the other for non-US investors. The US-based legal entity will be limited to accredited investors due to regulatory restrictions.

Smart Contract Platform

Fight Club anticipates using either Moloch v2 or another similar venture DAO smart contract governance platform for operations. Our models are based on MetaCartel Ventures and The LAO.

Service Provider

To reduce Developer requirements, Fight Club is engaging with several full-service venture DAO service providers that would provide Fight Club with 1) legal entity creation, 2) smart contract set-up, 3) UX development, and 4) deal flow due to collaboration from other venture DAOs on their platforms.

Token Sale

Fight Club is currently working with the Treasury guild to reach out to venture capital and hedge funds to determine interest in a private $BANK token sale. Fight Club investor members would be required to stake or lock their $BANK in a liquidity pool in order to maintain membership in Fight Club.

FINANCIAL IMPLICATIONS

No funding requirements at this time.

BRAND USAGE

The Fight Club is anticipating that its education and investment activities should be under the Bankless DAO brand, which would be beneficial for the Bankless DAO but also for the Fight Club itself.

The education activities complement the Education Guild’s efforts (i.e., the Bankless Academy), focusing on more traditional financial knowledge, thus strengthening the Bankless vision of empowering people to engage with crypto and venture capital. In addition, the investment activities would benefit as it would allow the Fight Club to participate in funding rounds, where multiple venture DAOs, angel investors, and traditional venture capital funds are competing against each other.

Thus, all activities of Fight Club should be under the Bankless DAO brand to strengthen the overall Bankless mission but also to strengthen the Fight Club’s competitive position.

SUCCESS METRICS

Fight Club’s success can be measured on numerous fronts. Internally, the success of the Fight Club would be based on traditional fund metrics and the impact it has on the Bankless DAO Treasury. The Educational success would also be measured separately for the Fight Club’s impact on supporting Bankless DAO members.

1. Internal metrics

• Invested capital in Fight Club
• Return on Investment (ROI)
• Number of deals invested in
• Number of deals reviewed

2. Treasury metrics

• Treasury diversification from BANK sale
• Revenue generation
• Return on Investment (ROI)

3. Education

• Number of analysts trained
• Jobs commissioned to the DAO

Next Steps

• Formalize Bankless Fight Club as a Guild
• Engage a Service Provider
• Create Fight Club entity structures
• Create a Proposal for a Token Sale

Squad Background

Who you are & disclose your interests with making the proposal

@tesa_daa I am a crypto investor and portfolio manager. I am interested in supporting new technologies, crypto projects, and initiatives that address social-economic inequality.

@pilkster I am a futurist investing in technologies that will have a long-term positive impact on humanity and our environment. I am interested in self-sovereignty and new forms of governance.

@fi_bo I am an early-ish Blockchain enthusiast, crypto investor, interested in furthering the bankless mission, spreading knowledge about, and supporting budding DeFi and web3 projects.

POLL

• Accept
• Reject
• Support direction but requires refinement

Poll showing Bankless DAO community support to create a Bankless vC DAO.

Poll showing numbers of people interested in different types of involvement in Fight Club.

[tommyolofsson]

Great write-up, do fight club need to be a guild? The financial implications of creating a guild should be considered as I assume a full guild would be eligible for seasonal funds.

I like the proposal, the above is more structure etc for future projects as well.

Do we have a revenue split figure with the DAO in mind? Or should I read this that all fees goes to the DAO? No cost of roles?

[TheMarvel]

While supportive and agree with the efforts anticipate challenges and unintended consequences. Not a big fan of the current name. I am a US citizen and familiar with the concept of self certifying as an accredited investor. Understand the legal requirements but the knowledge is from a decade ago. Nice to see mention of a testing requirement for accreditation. Learn, be nice, play fair and leverage the brand. Thanks to all for pulling this effort to this point. It will likely appeal to many. Appreciate the guild inclusion question and concerns.

[fi_bo]

I think for now, the idea is there is no cost for roles.

[tesa_daa]

The actual fee that the Fight Club would charge to investor members has yet to be decided and is a % of investor contribution. The idea is that Fight Club would be self-sufficient in terms of cost and Bankless DAO would receive the excess of fees. I believe the Bankless DAO Treasury is also free to participate once Bankless DAO determines its entity structure but need to check with legal on that.

[tesa_daa]

Thanks for your support! The name Fight Club is an internal Bankless DAO name as we would be violating US regulations in regards to marketing if we use the actual operational name. Please feel free to join our weekly #fight-club meeting on Wednesday, 1pm pst. #fight-club is under #member-benefits.

[ernest_of_gaia]

I had a refinement vote, In the “Inclusiveness and Education” section I did not see a paragraph on Inclusiveness, just education. It would be nice to know what Principals or Strategy you may have to foster Inclusivity within the governance or culture of the project. What pattern do you hope to establish that Includes folks. Maybe an expansion on this previous statement “US and a non-US version to maximize member participation”. member participation is a great metric, but diversity in participants may also be a worth while reason for having a US and NonUS version. wonderful proposal!!

[fi_bo]

You make really great points, and we are grappling with these issues and trying to come up with strategies that are as inclusive as possible, to include members who are interested in whichever capacity they choose. Please join us in our weekly meetings and share your ideas with us!

[frogmonkee]

Finally got around to reading this. Love the inclusivity and the no-cost capital investment. I do want to echo what @tommyolofsson said that this doesn’t need to be a guild, as guilds are organized around talent pools. This is a project, albeit a large one.

[Liza]

@ernest_of_gaia

I had a refinement vote, In the “Inclusiveness and Education” section I did not see a paragraph on Inclusiveness, just education. It would be nice to know what Principals or Strategy you may have to foster Inclusivity within the governance or culture of the project. What pattern do you hope to establish that Includes folks. Maybe an expansion on this previous statement “US and a non-US version to maximize member participation”. member participation is a great metric, but diversity in participants may also be a worth while reason for having a US and NonUS version. wonderful proposal!!

good point and question. I am part of the group working on this and the point has been central to discussions but isn’t yet formalized / articulated here.

[frogmonkee]

Moving to archive. Please reply to reopen.