By Jamie – Crypto Broker - 28/01/2022
For years, venture capital has been a closed-door world ruled by multibillion-dollar enterprises. With the advent of tokenisation and blockchain-based corporate efforts in the previous decade, the world of venture capital has become a central participant in Bitcoin investing and its wider popularity.
DAO venture capital is one of these firms, which leverages Decentralised Autonomous Organisations to facilitate venture capital Bitcoin investments. Despite their innovative concept, there have been struggles along the road, primarily regarding operational capacity.
A new project called 420 DAO, on the other hand, tackles this and other issues front on.
420 DAO isn't only a DAO venture capital fund, despite its name. It's also a company that performs three roles: creating decentralised apps (dApps), investing in promising crypto projects and buying altcoins, and managing their own ecosystem.
420 DAO is also addressing the age-old issue of DAO funds' operating capacities with its operational budget. This budget is simply one aspect of the 420 DAO's financial system, which revolves around its native 420 coin.
Users can buy Bitcoin and purchase the 420 token and then stake it in exchange for incentives. Traditional staking awards as well as harmonial benefits are available anytime another staker decides to quit. The staking prize is $220,000, which is split among the stakers based on their staking ratio. Tokens also serve as a means of gaining membership and ensuring voting rights, both of which are important features of DAOs. The value of the 420 tokens is, of course, linked to the assets that the 420 DAO is investing in. Users will be able to purchase the 420 DAO tokens through daily auctions starting in February 2022. The price of the tokens will be determined by the supply on each auction day; however, staking can provide additional tokens. The auctions will take place on the 420 DAO app, which is set to debut in February 2022.