Author: Justin Baba, Head of Research at Messari; Compiled by 0xxz@Jinse Finance
Daos.fun launched at the end of September, introducing a decentralized hedge fund model on Solana. Due to the popularity of the a16z fund, Daos.fun has recently gained widespread attention, with the a16z fund receiving funding from Andreessen Horowitz co-founder Marc Andreessen.
This unique structure allows carefully selected fund managers to raise SOL from investors and issue tradable tokenized shares (DAO tokens).
Through a dual-purpose design, fund managers control the allocation of funds, while DAO tokens provide a floor price, combining the appeal of speculative MEME coins with on-chain assets.
The operation of the Daos.fun ecosystem is as follows:
Initial fundraising: Each DAO will set a fundraising target. If the target is not reached, the SOL will be refunded to the contributors, but a 10% fee will be deducted. Once the target is reached, the DAO tokens will be listed on a bonding curve supported by a virtual AMM.
Active management: Managers can freely deploy the SOL fund within Solana. On a predetermined end date, token holders can redeem the underlying assets or trade their shares.
Profit distribution and holding: Upon the closure of the fund, profits are distributed, and the manager collects a pre-set percentage of the returns as a "dividend" fee.
In DaosDotFun, two main strategies have emerged:
1. Buying discounted DAO tokens: Investors seek to trade tokens at prices below their intrinsic asset value, expecting the price to converge with the market average and appreciate.
2. Early exit for quick gains: Participating in funding rounds and selling tokens after issuance can generate immediate returns, especially in larger-scale fundraising, as token demand will initially surge.
Daos.fun has pioneered a decentralized hedge fund model, combining the appeal of MEME coins with tangible assets. The protocol sets a structural "floor price" for each DAO token, balancing speculative potential and intrinsic value, attracting a diverse group of investors. This dual-engine approach positions Daos.fun as a unique asset class within the on-chain finance ecosystem.
