Economic Model
Komm DAO employs a hybrid organizational structure of DAO and Venture Fund, focusing on investing throgh SAFE+Token Warranty or SAFT agreements. This hybrid model aims to optimize resource allocation and maximize the returns for all stakeholders involved.
Within this model, the Venture Fund calculates carried interest on token distributions, irrespective of the actual profits generated. When a token distribution event occurs, a carry of 15% is taken out from the total token amount, and the remaining tokens are distributed to the investors. For example, if an investor is entitled to 1,000 tokens, a 15% carry is applied, resulting in a distribution of 850 tokens to the investor and 150 tokens being set aside as carried interest.
All of the carried interest, in this case, 150 tokens, goes directly to the DAO Treasury. This approach ensures that all profit and upside generated by the Venture Fund is channelled back into the DAO, strengthening its capacity to fund its initiatives and objectives. This carried interest is intended as a reward for DAO members who have made contributions to the DAO, and is typically distributed as Komm DAO tokens.
Carried interest calculations are performed on a deal-by-deal basis. In cases where profits surpass five times the contributed capital, the carried interest rate increases to 25%. It is worth noting that the carried interest rate may vary depending on the investment and can be subject to community voting.
In addition to carried interest, the fund levies a 2% management fee on the total value of assets under management. This fee serves to cover the expenses incurred by the Fund in connection with its operations, including but not limited to research, as well as legal, accounting, and administrative costs.
Komm DAO's economic model is designed to incentivize members to actively participate in the investment process and provide ongoing support to portfolio projects. The DAO nurtures collaboration and information sharing during the due diligence process and provide continuous updates on the progress of portfolio projects. Komm DAO's community-driven approach and transparent economic model aim to foster a sense of ownership among members and drive sustainable growth for the DAO's portfolio companies. Members can contribute to the DAO in various ways, including:
Deal sourcing and Communication - communicate with founders at potential investment companies and share deal information with the DAO. Secure investment allocation for the opportunity and provide regular updates on developments.
Due diligence (DD) - perform a thorough analysis of the project, including market, product, competition, team, tokenomics, and other aspects.
Operations and Management - review investment contracts and manage member investment allocations for each investment deal. Continuously monitor legal and accounting issues and share news with the DAO community.
Growth Support - leverage the expertise of professionals in research, marketing, development, design, and operations to contribute to the growth of the project.
Komm DAO itself does not generate any revenue and is not involved in the fund's revenue model. Instead, the DAO is responsible for governance and decision-making, such as selecting the professional investors who manage the fund and managing the DAO treasury.
Our passionate, professional members will support the growth of portfolio companies and build a differentiated community in sourcing promising Web3 projects. By sourcing high-quality deals, we will generate greater returns for the DAO Treasury and attract top talent to further strengthen the Komm DAO community.
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