In Flex DAOs, investing in a project is done through an Investment Proposal. An investment may need go through four stages: submission of the investment proposal, TempCheck, fundraising, and execution.
Step 1: Submit An Investment Proposal (By Scout)
This step is carried out by the Scout. Anyone who meets the Scout Eligibility set by the DAO can submit an investment proposal and become a Scout for this project. In this section, "You" refers to the Scout.
You can initiate an Investment Proposal by clicking on Investment proposal card from the Management page in a Flex DAO.
The Investment Proposal includes the following sections to fill in:
- Project Info
- Links
- Investment
- Escrow
- Scout Fee & Carry
- Fundraising
- 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 Currency | You can choose one from the mainstream currencies provided in the dropdown menu, or you can select Custom Token to customize the investment currency. |
Custom Token Address | If you select Custom Token in Investment Currency, you need to enter a token address here. Please note that the token needs to support the network deployed by the DAO. |
Minimum Funding Goal | The minimum financing target acceptable to the investee in this investment. |
Maximum Funding Goal | The maximum financing cap acceptable to the investee in this investment. |
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 Minimum Amount | The minimum amount of tokens that the investee needs to exchange in this transaction (calculated by the Minimum Funding Goal). |
Payback Token Maximum Amount | The maximum amount of tokens that the investee needs to exchange in this transaction (calculated by the Maximum Funding Goal). |
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. |
Scout Fee & Carry
You can request a Fee and Carry from the investors of this investment as a reward for your contribution to the investment opportunity by setting Scout Fee & Carry.
See Fee & Carry to learn more about Scout Fee & Carry.
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: TempCheck (By TempCheck Voters)
If the DAO has enabled the TempCheck For Investment feature, after an Investment proposal is successfully submitted, it needs to enter a temperature check period where TempCheck Voters will vote to decide whether the Investment proposal is allowed to be initiated and enter the fundraising period.
See TempCheck to learn more about TempCheck. See TempCheck Voter section to see who can participate in TempCheck. See TempCheck Voting section to learn how to participate in TempCheck voting.
Step 3: Fundraising (By Investors）
When an Investment proposal passes the TempCheck vote, it enters the Fundraising period. If the DAO has not enabled TempCheck, it will directly enter the Fundraising period. Anyone who meets the Investor Eligibility set by the DAO can advance deposit funds during the Fundraising period to participate in the investment.
If this is an investment proposal using Escrow, you need to check the Approve module to confirm whether the Payback Token Approver has approved enough Payback Tokens. If not enough, the proposal will fail. Therefore, you need to contact the investee to complete the Approve action as soon as possible.
Check For Investors / Invest In A project to understand how to participate in an investment as Investors. Check Fundraising to learn about different fundraising methods, such as FCFS and Free-in.
Step 3: Execution
When the fundraising period of an investment proposal ends, anyone can click the "Execution" button to implement the voting results.
If the investment fundraising is successful (reaching the Minimum Funding Goal), click Execution, and 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., Governors, Scout). See For Investor / Claim Vesting to learn how to claim Vesting.
If the proposal is not approved (not reaching the Minimum Funding Goal), clicking Execution will cause the investment proposal to fail and close.
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