🌍 EarthFund DAO
🤝 New EarthFund DAO vote: establish a new company for VC fundraising
Ahead of the proposal going live on Snapshot today, we wanted to give you the details and give you time to stake and have your say.
👋 We’re EarthFund, the decentralized platform using blockchain, DAOs, and crypto to revolutionize the giving economy and give you more of a voice in the shape of tomorrow.
This post provides insight into today’s vote to establish a new company ahead of our Series A fundraising round.
Hey Earthlings! 👋
If you’re in the USA, we hope you all had a great Thanksgiving!
As you all know, in the last month or so, we’ve been meeting with investors to secure between $12M and $15M in venture capital to continue the development and growth of the EarthFund platform.
Conversations are heading in a positive direction, but to secure investment, they wanted to see 3 things:
✅ A team of experienced entrepreneurs, advisors and team members that have what it takes to building a winning product. Check, check, and check.
✅ A working product with a strong addressable market and functionality. Check and check.
📈 A roadmap for growth with no barriers to execution. We have a roadmap and a clear strategy for growth, but we need to secure investment to really scale up our efforts and grow the team with the view of growing EarthFund into a billion-dollar company.
And due to the legal uncertainty of DAOs, the role of the EarthFund DAO was another barrier for investors. As such, our advisors have recommended establishing a new company — EarthFund Inc — to own and control the assets and intellectual property of EarthFund.
(That means the brand, the software that powers the platform, etc…)
However, we didn’t want to remove or reduce the role of the EarthFund DAO in the management of the platform, vetting causes and helping shape the projects/causes on the platform.
So, we came up with the following solution.
Our proposal for the relationship between EarthFund and the new company
The management of EarthFund DAO proposes the following:
- EarthFund DAO will seek to raise money from institutional investors.
- EarthFund DAO will form a new Delaware entity (“Newco”) through which the investment funds will be raised.
- The investment monies will be used to continue the development of the Newco platform and further market EarthFund’s solutions.
- EarthFund DAO has recently created and launched a DAO launchpad, KYC solution, donation router, grant/rewards contract, token minting tool, Discord bot and more… all of which enable prospective customers to launch a decentralized community without spending months or years developing their own platform.
- EarthFund DAO will contribute assets (i.e., all intellectual property, including but not limited to brand, platform, and software) to Newco in exchange for 20% of the equity of Newco. (The remaining equity in Newco will be allocated to investors and to current and future Newco leadership as an incentive.)
- EarthFund DAO will receive common shares of Newco that will have no voting rights except as described below.
- EarthFund DAO management believes that the value of EarthFund’s interest in Newco (i.e., 20%) will far exceed the current value of EF DAO on a stand-alone basis.
- EarthFund DAO and Newco will work closely together to maintain a fair ecosystem for DAO communities on Newco’s platform.
- EarthFund DAO will receive quarterly shareholder updates from Newco
- EarthFund DAO will be responsible for the ‘Browse Communities’ section of the Newco platform (what communities are included, featured, removed, etc.)
- EarthFund DAO will be entitled to their pro-rata share of sales proceeds if Newco is sold.
- EarthFund DAO will receive its pro-rata distributions from the profits of Newco if Newco chooses to distribute profits (vs. reinvest).
- EarthFund DAO will have a vote on how it uses distributions or possible sales proceeds.
We need your help to secure investment and grow EarthFund and 1Earth 🚀
We’ll put the proposal live today at 4pm EST on the EarthFund Snapshot.
If it passes, we’ll proceed with the setting up of a new company.
Because we’re using Snapshot, you need to have staked your 1Earth before the vote goes up in order to have a say on the proposal.
Here’s how to get involved before 4pm EST:
To get 1Earth: you can buy 1Earth from earthfund.io/token or from KuCoin.
To stake 1Earth: to get your voting rights, stake your tokens at app.earthfund.io/stake
To vote: head to snapshot.org/#/earthfund.eth when the vote is live.
Let’s build a better tomorrow, together.
Thank you in advance for all of your support,
The EarthFund Team
