In Collective DAOs, investing in a project is done through an Investment Proposal. An investment must go through three stages: submission of the investment proposal, voting, and execution.
Step 1: Submit An Investment Proposal (By Scout)
This step is carried out by Scout. Any Member in a Collective DAO can submit an Investment proposal and become a Scout for this investment project. In this section, "You" refers to Scout.
You can initiate an Investment proposal by clicking on Investment proposal card from the Management page in a Collective DAO.
The Investment Proposal includes the following sections to fill in:
- Project Info
- Links
- Investment
- Escrow
- NFT
Project Info
You can provide some information about the investment project in this section. This section is optional.
Item | Description |
Project Name | The name of the investment project. |
Round or Tag | Proposer can set the funding round or category label for the investment project. |
Description | The description of the investment project. |
Poster | The poster of the investment project. |
Logo | The logo of the investment project. |
Links
You can also add links to provide more information about the investment project. This section is optional.
Investment
Item | Description |
Investment Amount | Investment Amount |
Funding Currency | Default display the currency symbol of the DAO pool. |
Investment Receiver | The wallet address of the recipient of the investment funds. |
Receiver ID | Investment Receiver's Profil3 profile. Used to check the correctness of the investment receiver address. |
Escrow
If you are launching a token-based investment and the investee is willing to use the Vesting provided by DAOSquare Incubator to deliver Payback Tokens to the investors, then you can choose to use the Escrow. After you enable Escrow, you need to set up the Payback and Vesting functions. See Escrow to learn more about Escrow.
Payback
Item | Description |
Payback Token Address | A project Token provided by the Investee in exchange for investment funds. |
Payback Token Currency | Symbol of the Payback Token. |
Price | The price of the project token (denominated in the proportion of investment). |
Payback Token Amount | The total amount of tokens that the investee needs to exchange in this transaction. |
Payback Token Approver | The address where Investee approve the Payback Token for Escrow. [Note: This address does not need to be the same as the Investment Receiver's address]. |
Approver ID | Profil3 data of the Payback Token Approver. Used to check the correctness of the address. |
Vesting
See Vesting for details on Vesting. The following is an overview of the parameters.
Item | Description |
Vesting Start Date | Start time of vesting. |
Vesting End Date | End time of vesting. |
Cliff End Date | End time of cliff period. |
Cliff-Vesting Amount | The percentage of tokens released to investors at the end of the Cliff. |
Vesting Intervals | Period unit for releasing the tokens. |
NFT
You can enable NFT for this investment. When the NFT function is used, the investment beneficiary is assigned an NFT to represent his investment benefit eligibility, and transferring the NFT transfers his representative's investment benefit eligibility.
See NFT for a detailed introduction to NFT functions.
When you are finished, click Submit button to complete the proposal submission.
Step 2: Start Voting (By Members）
Once an investment proposal has been successfully submitted, it is ready for voting. A Member needs to click "Start Voting" to open the voting period. Any Member of DAO can do this. Before clicking Start Voting button, you need to check the following questions:
- If this is an investment proposal that uses Escrow, you need to check the Approve module to see if the Payback Token Approver has approved enough Payback Tokens. If it's not enough, when you click on Start Voting, the proposal will fail. Therefore, you need to contact the Approver and ask them to complete the Approve action as soon as possible.
If all is in order, click Start Voting button to start voting. When the proposal moves into voting period, any Member of the DAO may vote. Check out Voting for more details.
Step 3: Execution
When an investment proposal reaches the end of the voting period, anyone can click the "Execution" button to execute the results.
If you click Execution and vote passed, the transaction will be executed:
- Investment amount will be sent to the address of the Investment Receiver.
- Scout Fee will be sent to Scout's address.
- Protocol fee will be sent to the Governomy of DAOSquare.
See Fee & Carry to understand how fees charged.
- If the investment uses Escrow, Vesting for the investment will be created and the Payback Tokens can be invoked by Vesting to release the tokens to all investors and possible relevant beneficiaries (e.g., Scout). See For Investor / Claim Vesting to learn how to claim Vesting.
If the proposal is not approved, clicking Execution will cause the investment proposal to fail and close.
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