RecoveryDAO — The Best Way to Create Wealth and Avoid Recession
DAOs as an Investment Vehicle
Decentralized Autonomous Organizations (DAOs) are blockchain-based organizations that are collectively owned and operated by their members. DAOs are built upon a foundation of smart contracts that define the rules of the organization as well as perform protocol operations and governance functions. Most major decisions in DAOs begin as proposals and are ultimately decided upon by community and/or member voting which is recorded on a blockchain. This is also the same method used to control DAOs’ treasuries and to determine how these organizations spend their funds. In total, DAOs offer stakeholders significantly more transparency and control over the organization than traditional corporations.
Some use-cases that are being applied for DAO’s today include: Investment, Charity, Fundraising, Borrowing, Buying NFTs, etc. In investment DAOs, participants use the DAO’s governance tokens to vote on which projects to invest in. Such a DAO will also have an address which holds all of its assets in a multi-sig wallet which requires multiple signatures to authorize transactions used to allocate capital in a very fluid way. Investment DAOs have become an important vessel in funding the Web3 ecosystem in addition to traditional VCs and funds. With more capital coming into the space, projects are starting to figure out optimal ways to deploy funds outside of their own growth in order to increase revenue streams.
What is RecoveryDAO？
Recovery is a decentralized crowdfunding protocol driven by the community.
The goal of RecoveryDAO is to protect all members of RecoveryDAO from the effects of a recession. This will be controlled at a high level by the governance of the DAO. RecoveryDAO also intends to present a unique fundraising technique that gives EVERYONE a chance across board.
In the long term, we believe this system can be used to optimize for stability and consistency against crypto investments volatility. In the short to medium term, we intend to optimize the system for growth, wealth creation and preservation.
We believe a community is the foundation of everything possible. This is RecoveryDAO. We will call ourselves RECOVIANS.
Decentralized Finance (Defi) Portfolio — Our Key Ethos
The new web landscape has offered considerable freedom, flexibility, and power to general users. Now, any individual could be their own bank and manage their assets with improved transparency and control over their investment decisions. In addition, the arrival of composability in DeFi projects and the creation of new financial products by investors present a formidable indication of the growth of DeFi asset management.
DeFi relies heavily on a decentralized infrastructure for its operations. The majority of DeFi protocols leverage the Ethereum blockchain for their operations. But in recent times, some protocols have already shifted to other blockchain networks for the benefits of scalability and speed.
The conventional financial or “Tradfi” landscape focuses largely on life goals, risk profile needs, and income for investment decisions. Based on these factors, investors could find the right places to put in their money. The striking factor, in this case, refers to the comparatively manual process alongside the burden of standardization. Therefore, it is common to find different types of clients in similar investments.
Now, index funds and algorithms dominate the investment and asset management market. All of these implications combined with the beneficial propositions of DeFi have been the inputs for the growth of asset management in DeFi.
Prior to the arrival of DeFi, crypto trading was considered the next big alternative to conventional financial systems. Subsequently, with the growth of Ethereum usage along with ERC20 tokens, decentralized exchanges emerged as an alternative to the pitfalls and hazards associated with centralized exchanges.
Apart from the concern of decentralized exchanges, the aspirations for hedging, margin, borrowing, and lending trade also emerged prominently. Simultaneously, users encountered the need for incentive mechanisms associated with staking and liquidity. As a result, DeFi started becoming more competitive.
The three important characteristics through which RecoveryDAO intends to empower asset management are transparency, trustlessness, and composability.
Transparency is actually a myth in the world of traditional finance — Tradfi. Presently, extended settlement times ranging up to almost 2 to 3 days alongside the general quarterly reporting leave little room for transparency. Owing to these factors, asset managers have to report public displays of their assets on a monthly or quarterly basis. So, if you invest in a particular asset, you could not be clear about the status of the asset at a specific instance. You could only find out details about the performance of the fund and the asset managers in the previous quarter.
RecoveryDAO asset management allows comprehensive visibility at the block level for holdings of an asset. It also offers you clear insights into the asset’s performance and the asset manager.
The next critical aspect related to the working of RecoveryDAO asset management refers to trustlessness. With the development of DeFi on Ethereum, users could connect their wallets and interact with asset management options. Interestingly, there is no need for providing any KYC information or knowing about the details of the managers. The trustlessness functionality with defi management supports the creation of diversified portfolio tokens.
Composability. DeFi is composable, which means the system’s building blocks (assets) can freely interact with one another to form new services. One example is stablecoin, a token with fixed exchange rate, which is backed by token collaterals.
Traditional finance frameworks require asset managers and advisors to work comprehensively on the creation of a portfolio with growth, liquidity, income, and hedging. As a result, the asset manager could demand a higher fee, thereby increasing the cost of asset management.
RecoveryDAO — The vision and mission
We became inspired to build and develop an independent investment DAO to invest into web3 projects by providing easy access to members of our community and building a thriving VC for us. We believe in the power of community and grassroots networks with a common goal from a handful to thousands of members can achieve anything. The goal is to protect the downside against market floods and give every member — everyone an opportunity, as opposed to traditional funding organizations which can be hierarchical, elitist, localized, and lacking in transparency.
At the core, the following will be our main goals:
· Draw investors and investments from across the globe
· More flexibility in terms of investment size and types
· A social bond or uniting ethos as opposed to functional organization
· Radical transparency enforced by smart contracts.
Governance
Anyone can become our node by staking liquidity, and nodes will become the heart of the protocol and essentially define, shape and control the future. Nodes will make proposals and collectively vote on whether to implement them. One of the first decisions, RecoveryDAO will collectively decide upon is its launch.
Launch
The excitement and anticipation from RecoveryDAO has been enormous — and we appreciate that. Our vision is to make this experience as immersive for our community members as possible, while ensuring the process is fair and inclusive. We are still establishing a robust mechanism to launch in a fair manner and will not disclose extensive details ahead of time, as we do not want people gaming the system. Recovians will however decide their preferred launch methodology.
“Wen launch” seems to be a recurring question that we cannot answer immediately. Building RecoveryDAO is no simple task as we have to think about community, design and structure. Although we realize and acknowledge that time is of the essence in the world of crypto, we prefer making sure our solution is strong and sustainable, rather than rolling out a half-baked product. On the other hand, The RecoveryDAO core team is working round the clock to try and deliver as soon as possible.
How do I come onto RecoveryDAO?
Governance participants and members can get involved through discussions on our community and DAO discord. We are always looking for new community members to contribute!
Who owns RecoveryDAO?
The community and members.
Who runs RecoveryDAO?
No one. RecoveryDAO is DAO-governed. All decisions are formed by community members on the discord and made through voting.
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{We appreciate you taking the time to read this piece and hope to hear your input. We, the Recovians, are in this together. We will continue to engage with the community and put out regular updates on our Discord and Twitter.}
