Author

Joseph Fluckiger

Intro

How do we raise capital for ATX DAO?

ATX DAO needs to raise capital. Some potential expenses include:

• Funding future social event (venue + food/drink)
• Purchase Merchandise to then sell
• Hire staff member (intern) to help run ATX DAO operations, events and marketing
• Build out and host atxdao.com

Overview

One solution is to follow the traditional corporation capital raising pattern: sell Bonds. How this would work: A bond purchaser will send crypto stable coins to our ATX DAO wallet, and ATX DAO will promise to repay the bond amount in 1 year with a generous interest payment. Also by providing the bond to ATX DAO, the purchaser will be granted some membership benefits. (attendance at member-only events, serving on DAO committees, participation in future mints, etc). Bonds are a more predictable fund raising option than NFTs because the present and future value are clearly understood. We will transact in stable coins to avoid market volatility.

• The bond purchaser sends 1001 UST to our Expense wallet with the memo "ATX DAO bond".
• The transaction is recorded in the Treasury DB in Notion, and an on-chain transaction is recorded by sending 1 UST back to the purchaser with memo "ATX DAO bond approved"
• After 1 year the ATX DAO Expense wallet sends 1200 UST back to the purchaser to pay off the bond.

Deposits

Bond deposits will be stored in anchor.protocol which will earn 19.5% APY and allow ATX DAO to pay back the 20% to the purchaser after a year. The DAO can also use some of the funds to cover expenses, and recruit more bond paying members.

Benefits