Initial Capital Formation
Last updated
Last updated
The initial funding of the Skyren DAO follows a carefully structured three-step process, designed to ensure transparency, fairness, and long-term sustainability. Let's break down each step of this process:
The first stage of funding occurs during the SKYRN token presale:
Contributor Allocation: Skyren contributors receive a proportional share of the rights to the 5% contributors reward.
Alignment with Whitepaper: This allocation is in line with the DAO reward distribution outlined earlier in the whitepaper.
Incentive Structure: This step ensures that early contributors are rewarded for their support and have a stake in the project's success.
Key Points:
Contributors get a share of the 5% reward pool.
Allocation is proportional to contribution.
Follows the predetermined tokenomics structure.
After the presale, a portion of the funds raised will be allocated to the Skyren DAO:
Proportional Allocation: The amount allocated to the DAO will be proportional to the total funds raised.
Post-Operational Costs: This allocation occurs after satisfying necessary operational costs.
Examples of operational costs include but are not limited to:
Marketing expenses
Development costs
Third-party service provider fees
Legal and compliance fees
Team salaries and administrative expenses
Infrastructure and technology costs
Key Points:
DAO receives a share of presale funds.
Allocation happens after covering operational expenses.
Ensures balance between DAO funding and project needs.
The final step clarifies the ownership and rights associated with the contributions:
Initial Contributions: Funds contributed during the first stage (Step One) remain under the ownership and rights of the Skyren contributors.
These funds can be returned to contributors at any time and for any reason.
Provides flexibility and security for early supporters.
Subsequent DAO Funding: All funds added to the Skyren DAO after the first stage (Step Two and beyond) fall under the sole ownership of Skyren token holders.
These funds are governed by DAO rules and voting mechanisms.
Represents the transition to full community ownership and control.
Key Points:
Initial contributor funds remain returnable.
Subsequent DAO funds are community-owned.
Clear distinction between early contributions and ongoing DAO assets.
This three-step funding process for the Skyren DAO is designed to:
Reward and incentivize early contributors.
Ensure adequate funding for both the DAO and operational needs.
Provide a clear transition from initial contributor control to community governance.
By following this structured approach, Skyren aims to create a strong foundation for its DAO, balancing the interests of early supporters with the long-term goals of the project and its community. This process not only funds the DAO but also sets the stage for sustainable, community-driven growth and governance.
