You know what’s the most thrilling part about the crypto space? The whacky journeys from zero to hundred. One moment it’s all quiet, and then, slam, crack, pow! It’s booming!
This has been the theme with the progression of memecoins this year. What started with viral dogs and cats, spiraled into celebrities launching memecoins and AI agents taking over.
As if this weren’t enough, we now have a quick-launch memecoin ETF platform to get exposure to memecoins ‘DAO-style.’
Almost nine months after the Bitcoin ETF approval and three months after the Ethereum ETF approval, memecoins and DAOs seem to have formed a crazy chemistry. Now, it’s like they’re flashing the middle finger at Gary Gensler and the SEC.
Oh boy! My hands are sweating typing this, and I am bursting with excitement! Nothing can beat the innovation in this space.
Without further ado, let’s get into it. There is a lot to unpack here, and as usual, we got you covered! So, let’s dive straight in.
What is Daos.fun?
Daos.fun is a Solana on-chain launchpad for memecoin hedge fund assets.
It does so by combining the fundamentals of how a decentralized autonomous organization works and the theatrics associated with trading memecoins.
Daos.fun allows approved creators (whitelisted) to create memecoin funds by raising a threshold base capital (currently capped at $15k), and then proceeding to issue a publicly traded DAO token (reason why it can be likened to ETFs).
Once this is done, the fund creator will then be accorded a smart wallet that will be used to buy and sell memecoins on behalf of the DAO members.
The DAO created by the portfolio manager is bound to an expiry date that ranges from three months to a year, after which whatever is accrued during that period is shared between the DAO members.
That being said, it should also be noted that the creator can decide to close the fund beforehand.
The DAO fund manager or creator also takes a certain one-time fee called the “creator carry” once the fund is closed.
The DAO token functions like an ETF, tracking the performance of assets in the basket as traded by the DAO creator via the smart wallet. However, the price of the token is subject to demand and supply and can trade above or below the net asset value (NAV).
In fact, this is where it’s gotten pretty crazy as we’ve seen DAOs like Sequoia Capital go as far as trading 200x above the NAV.
To purchase a DAO’s token, you can simply connect your Phantom wallet to Daos.fun and insert the amount you are willing to buy. As this is all still quite new, the contract address is not yet scannable via telegram bots.
If you’re struggling with grappling with the sense in all of this, the question on your mind is pretty clear.
Why does Daos.fun exist?
Why would anyone create something like this and why would folks want to buy a memecoin ETF asset when they could just buy the memecoins itself?
Well, you see, the idea behind building something like this is that it bridges the gap between those deep in the trenches but blind to an extent, and those who not only have the skills required reap profits with memecoins but also have access to privy information that gives them an edge in the market.
Through Daos.fun, the first category of traders can get informed and desired exposure to memecoins with minimum capital. On the other hand, the fund manager or creator gets more liquidity to trade and earns from fees, LPs, and the creator carry as mentioned above.
Daos.fun also sort of solves problems associated with skimming through millions of memecoins launched per day, narrowing them to a basket that can be speculated on.
Another reason Daos.fun seems like an incredible idea is that it sets a clever trap for “larpers”— those accounts that post cropped screenshots of Phantom wallets with an exaggerated PNL. It’s essentially a challenge: “If you’re that good, create a DAO on Daos.fun.”
Being approved to create a DAO is tied to your X (formerly Twitter) account. In retrospect, your reputation is at stake. If you were to misuse DAO funds or manipulate the system, it would reflect directly on you.
This brings us to the next thing to discuss here — What is the current state of the dApp, Daos.fun?
State of Daos.fun at the moment
Just like we mentioned earlier, this is all pretty new stuff, and so the app isn’t really there yet. There have been a few complaints about the user interface and also concerns about the safety of users.
In terms of safety, Daos.fun doesn’t fare well just yet, especially because it still relies heavily on social trust. When placed alongside the anonymous culture of the crypto community, this reliance creates opportunities for dishonest individuals.
For example, someone could raise the benchmarked capital for a DAO, set it up, and then use the funds to provide liquidity for a token they created themselves.
However, for the first layer of safety, the team makes sure that only whitelisted individuals are allowed to create a DAO during the early stage. Alongside that, several additional conditions have to be met.
Furthermore, the team has hinted about future rollouts such as the ability to replace the DAO creator as well as unique identities for each DAO, allowing DAOs to streamline the type of memes they choose to purchase.
Closing thoughts
Daos.fun is certainly an on-chain deus ex machina, considering how utility maxis speak of memecoins and how memecoin enthusiasts loathe the sound of utility.
Who would’ve thought DAOs and memecoins would be a thing?
The concept is fresh and combines two sectors of crypto to forge a vehicle that has all the signs of being successful. With Daos.fun, there’s a shift away from DAOs being nothing other than voting vehicles to now also being autonomous financial communities that basically have fun and make or lose money.
Whether all of this is water-proof to the SEC’s ability to cause flooding in the party is still unclear — I mean, it’s just memes, but Gensler is known to be a party pooper anyway.
However, one thing that we do know for sure is that Daos.fun is rapidly gaining traction, especially with coded interest from a figure like Marc Andreessen.
How far this goes is really up to the Daos.fun team. They ought to keep the excitement going and potentially forge alliances with winners like Pump.fun.
Nonetheless, we can say that if this continues to work, it does have the ability to potentially change the fabric of the memecoin market.
Again, it shouldn’t be forgotten that this is the ‘earlier than early phase’ and it is important to do your own research before making any financial decisions.
