Let's talk about what today's trending dao fun really is

daofun what is it?

It can be understood as a new meme launch mechanism. Generally speaking, VCs and institutions receive invitations to create a fund, and when the target amount is raised, it opens for trading. This is different from the internal trading of pumpfun; during the fundraising stage of daofun, all users have the same cost, similar to an IDO.

Retail investors are not buying traditional meme coins but are actually purchasing shares of this dao fund. Shares can be freely bought and sold, and users can also receive dividends upon exit.

Each fund has a term; when the fund expires, the sol in the pool will be returned to the users holding the tokens, and users can burn their tokens to redeem sol.

daofun can do what?

VC: Can create funds, essentially acting as their own fund manager. Retail investors are actually investing in people, betting on the profitability of this fund manager.

Retail investors: Purchase shares, meaning dao tokens. Theoretically, these should not drop below the initial price because the platform mandates that the market value must exceed the amount raised; however, secondary trading is at one's own risk. This cannot be bought with bots, but only on daofun. What is available on raydium are private pools and are quite shallow.

Currently, the leader on daofun is ai16z. Ai16z and degenai were both deployed by the same person, one on daofun and the other on pumpfun, and the two have a connected relationship; ai16z holds 4.2% of degenai tokens.

Many people now believe this model lacks innovation. Those who understand traditional fund operations find this quite interesting. As for me, I don't understand traditional funds, but I also bought ai16z, thinking that new things are always worth exploring.