The fund operation of Collective DAO has no fixed period. After the DAO is deployed, it can initiate fundraising at any time or propose Member-In or Top-up proposals to deposit funds.
Fundraising in DAOSquare Incubator is a public fundraising activity with specific thresholds targeted at multiple investors. The fundraising targets can be existing members or potential new members, and the DAO can limit new members' investment eligibility through Member Eligibility. The DAO can also set fundraising goals through Minimum/Maximum Funding Goal parameters, and limit investors' deposit amounts through Minimum/Maximum Deposit. Anyone who meet Member Eligibility can make advance deposits during the Fundraising period. Existing members are not restricted by Member Eligibility. Therefore, there are two types of people who can participate in Fundraising in Collective DAO.
Potential new Members | Investors who meet the Member Eligibility criteria. |
Existing Members | Regardless of whether they meet Member Eligibility |
When the DAO is deployed, if a Fundraising is required, DAO need to initiate a Fundraising Proposal to start the fundraising, allowing the DAO to engage in investment activities. Fundraising requires two stages.
Stage | How To |
Fundraising Proposal | It is initiated by any Member, and the Members of the DAO votes on whether to open a new fundraising. |
Fundraising | When the Fundraising proposal is approved, all existing members and potential new members who meet the Member Eligibility criteria will be able to Advance Deposit. If the minimum fundraising target is reached, the fundraising is successful. Non-DAO members who successfully Advance Deposit and receive an investment share in the fundraising will become new members of the DAO. |
Stage 1: Fundraising Proposal
You can initiate an Fundraising proposal by clicking on Fundraising proposal card from the Management page in a Collective DAO.
The Fundraising proposal includes the following sections to fill in:
- Information
- Fundraising
Information
You can provide some information about this fundraising in this section. This section is optional.
Item | Description |
Tag | Proposer can set the funding round or category label for this fundraising. |
Description | The description of this fundraising. |
Link | Proposer can add a link to provide more information about this fundraising. |
Fundraising
Item | Description |
Minimum Funding Goal | Minimum funding amount of this round of fundraising. |
Maximum Funding Goal | Maximum funding amount of this round of fundraising. |
Start Date | The start time of the fundraising. |
End Date | The end time of the fundraising. |
Minimum Deposit | Minimum advance deposit threshold for participants. You can turn this restriction off (NO) or on (YES) using the drop-down menu on the right. |
Maximum Deposit | Maximum advance deposit limit for participants. You can turn this restriction off (NO) or on (YES) by using the drop-down menu on the right. |
Type | You can choose between FCFS and Free-In fundraising methods. See Fundraising for more details. |
Priority Depositors | With Free-In fundraising, you can set up Priority Depositors for your fundraising. Check Fundraising for more details. |
After filling in the above contents, you can click Submit button to submit the proposal. When the proposal is submitted, it will enter the voting period for all Members to vote on the proposal. See Governance Voting to learn how to vote on a proposal.
When the proposal is approved, it will move to the Fundraising stage.
Stage 2: Fundraising
When a Fundraising proposal is approved and in the Fundraising is period, you can check the fundraising progress and data on the homepage of the DAO, and of course, you can also participate in it as an investor. For information on how to participate in Fundraising as an investor, see For Investors / Invest In A Fundraising Event.
You need to pay attention to the following points during the fundraising period.
- Fundraising countdown.
- Current Raised: The fundraising will be successfully raised only if the amount exceeds the Minimum Funding Goal, otherwise it will fail.
When the fundraising period ends, you need to click the Execute button to execute the transaction. If the actual amount raised is equal to or greater than the Minimum Funding Goal, this fundraising is successful and DAO enters the investment period. Depending on the final allocation of the investment share, the investor can get back the portion of the advance deposit that is unconfirmed. If the actual fund raised is less than the Minimum Funding Goal, This fundraising will fail, and all Investors who participated in the fundraising will need to get back all funds that have been deposited, please see For Investors / Invest In A Fundraising Event for more details.
Please refer to Fundraising for how to allocate investment shares.
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