BendDAO Proposes To Establish A Investment Fund Of $80 Million

BendDAO is seeking community approval to sell 1 billion tokens, thereby forming a subsidiary treasury for the organization.

On September 19, NFT lending platform BendDAO submitted a proposal to create a $80 million non-operating asset investment fund.

The move is part of an effort to diversify the DAO treasury. If approved by the community, the fund will act as a subsidiary treasury of the organization and deduct at least 50% of the investment amount into non-operating assets, i.e. assets that are not engaged in production activities, or business of the enterprise.

BendDAO proposes to sell 1 billion tokens, representing 10% of the total BEND supply. Lending platform NFT plans to use Ethereum (ETH) as the funding currency, with a minimum investment of 100 ETH per share to achieve an after-money valuation of $80 million for the fund.

Of the 1 billion tokens, 60% are allocated to venture capitalists. The rest is divided equally among investors from DAO and blue-chip NFT projects. Each VC, NFT, or individual investor is only allowed to own a maximum of 2% of the tokens being sold by the fund.

BendDAO intends to use a minimum of 50% of the funds to invest in non-operating assets. The DAO will create a 4/7 multi-sig wallet for the secondary treasury, consisting of 3 community members, 2 VC representatives, 1 person from the blue-chip project, and 1 key member of BendDAO.

Currently BendDAO is considering two token distribution options for investors: No vesting is required, but the DAO will send an equivalent amount of ETH generated from the token sale to its ETH liquidity pool for profitable staking; Or request vesting for 6 months and gradually unlock within 2.5 years.

BendDAO thinks the sub-treasury is essential given the recent difficulties the project is facing amid the downturn in the overall NFT market. Some borrowers have fallen into default due to the sudden spike in borrowing rates, poor liquidity, and the NFT floor price also continuously bottoming.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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