Former Polychain Capital General Partner Rolls Out A Blockchain-Focused Investment Fund

Tekin Salimi – the former general partner of Polychain – has released a unique blockchain that is centered around an investment fund to be ultimately transformed into a DAO (decentralized autonomous organization) owned by the founder, providing an exclusive method for venture frontrunners to be provided reward in return for their participation. The function of the fund of nearly $125M, considered as “dao5,” would be to invest in crypto and blockchain projects in the seed as well as pre-seed stages.

In the world of ventures, a pre-seed round normally assists the founders of the firm to initiate their activities successfully. After that, the seed stage counts to be the earliest round of equity funding. The respective fund will get its investment primarily moved toward the projects having a distinction in the layer-1-based blockchain infrastructure, non-fungible tokens, DAOs, DeFi (decentralized finance), privacy technology, as well as the rest of the social venues related to crypto.

Dissimilar to the conventional funds of venture capitals where the owners of the firm acquire direct funding out of the venture capitalists, the recipients will be offered by dao5 with a provision of governance tokens consisting of the future DAO of the fund. Dao5’s advisers as well as the employees will additionally get governance tokens. As per the expectations, the fund will commence with its official transformation into a decentralized autonomous organization and thus acquire an adequate decentralization level, at some time near 2025.

By seeking a DAO-based governance structure, the venue is trying to offer a particular extent of risk diversification because the entirety of the grant beneficiaries will be given exposure to the entirety of the projects across the portfolio. According to the declaration of the platform, the respective move will deliver incentives to the founders, enabling them to contribute along with increasing opportunities for their success.

According to Tekin Salimi, dao5’s target is to delve deep into a unique model to make advancement to a DAO through initially concentrating on capital and talent acquisition via venture investing. The second focus, he added, would be on the enhancement of the treasury value by taking benefit from the dao5 community’s cumulative talent.

The CEO worked as one of the largest crypto venture funds Polychain Capital’s general partner. Supporters of DAOs see the respective governance mode to be a chief innovation regarding the operation of systems and organizations.