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July 3, 2022
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In recent years, particularly from 2017 to 2021, we have witnessed a wide variety of fundraising methods being practiced in the cryptocurrency world. These fundraising methods are rapidly evolving with new updates and new ideas every six months.
A number of launchpads are coming forward to facilitate these fundraising campaigns and DAO Maker is the absolute best in the launchpad platforms. DAO Pad from DAO Maker is the leading fundraising launchpad with #1 rank as per ‘Cryptorank’.
Ahead of Polkastarter and Red Kite, DAO maker has proved to be the best launchpad so far. It has hosted some popular IDOs like GameFi and Opulous. So far DAO Maker has given an ATH average ROI of 46.64x.
In this tutorial, we are going to see how you can participate in DAO maker. But first, one should know what exactly DAO maker is doing in the crypto space regarding fundraising methods. Let’s begin with understanding DAO Maker’s new public SHO.
IDO is a fundraising method being used since 2019. Therefore, investors and startups are pretty much comfortable with the format and working of an IDO. The fundraising methods are constantly evolving since 2013.
In 2013 we saw the first ICO being held by Mastercoin to raise funds. Later on in early 2019, the idea of IEO was proposed and it immediately got accepted by concerned organizations. Soon, a decentralized version of IEO, known as IDO was launched in July, 2019 and became industry standard.
As per the current trend, most of the startups are going for Multi pad IDOs where they get exposure to larger participants and in turn greater investments. As a competitor to Multi pad IDO, DAO Maker developed a new model known as SHO(Strong Holder Offering).
The model of SHO is designed in such a way that it offers a win-win to both investors and startups. DAO Maker uses its chain-analysis technology together with data collected from various sources to find eligible investors for startups.
Investors are selected based on their EVM compatible on-chain activities, primarily investor’s wallet activities across EVM compatible networks. Thus introducing heavy or strong investors to the startup while providing greater security to these investors.
The key feature of public SHO remains that it gives startups freedom to target a number of launchpads and thus targeting a larger and variety of crypto communities. Targeting strong holders makes it possible to bring assets worth $160M to the table.
Once a user has won an allocation, tokens are released in a controlled manner. 30% of unlocked tokens are available to sell instantly, whereas rest tokens are unlocked dynamically over time. Winner has to pay 30% fees with an additional flipper fee.
This flipper fee can be waived off if the user buys 2000 $DAO tokens. The SHO will work in this manner and will offer strong incentives for new investors as well.
Now that you have a better understanding about DAO Maker’s SHO, it’s time to look at advancements in SHO which are going to be beneficial for you once you start participating in SHOs.
DAO has this new product SHO which is a model to target the public for investment. Strong Holder Offering is a fundraising system and it is one of those systems which helps new projects to launch in crypto space.
DAO assures the safety of funds and incentivizes users. They create a win and win situation for developers as well as users. The DAO Maker team is constantly improving SHO, introduced in 2021. They are improving the framework and establishing new guidelines for betterment of SHO.
They put forth the ideas of a series of tests for new startups, after going through it, the new projects can be listed on SHO. This made it tough and discouraged the fraudsters to stay away from SHO. Even vague startups can be caught easily on these tests. As DAO makers provided the filter.
Later, DAO makers made some important changes systematically as well as in their guidelines. So they made changes in four main aspects of SHO and improved the platform for everyone. Here are the new changes and improvements.
Prefunding contracts were terminated by DAO makers as they were about to try something new, they had plans to introduce a staking system. They closed or terminated pre-funding contracts because of security reasons regarding user’s funds. Later, they made an announcement asking users to withdraw their funds.
Regarding this, DAO makers sent emails to all DAO stakeholders, as they were allowed to withdraw from their smart contracts. But, if some of the users or the DAO stakeholders forget to withdraw their funds then the task was done by DAO makers itself, by returning them as BUSD and transferring them on BSC smart chain.
Now some of you will be aware about the GAS fee, so as the makers transferred their funds they deducted 15 USD as GAS fee, as it covers the cost. So whatever the amount in this contract, 200 or 500 or 1000, they will deduct 15 USD from it.
Till then SHO will use BSC (Binance Smart Chain). For BSC, users will get payment only in BUSD, it is the only payment option and native stable coin for BSC. Users will get only 12 hours to bestow their part after winning the SHO. For the users who fail to take part or contribute in it, they will be part of venture Yield.
DAO makers made an announcement to shift their funds to Non-Custodial Wallets from the DAO vault. As we mentioned above they already had things planned accordingly, to close the DAO vaults and allow users to withdraw their funds in a specific given time.
They also had news for DAO staking. Users will be qualified to participate in SHO after they are done with unstaking and holding in the wallets which are connected to their DAO.
DAO makers had this project of Non-custodial wallets under testing and they were ready to publish new information on it soon. They now have information and will enforce the system simultaneously.
They started the system with Chatex SHO and in turn users will get DAO power. The power will be on the basis of tokens users hold in their wallets and LP providers will have 1.5X DAO power compared to DAO holders.
Another area where SHO made significant improvements is the Multi-ticket system. This new system was brought to the table to ensure that more and more investors can participate and stand a chance to win an allocation.
With this updated ticketing system, now a single investor can win multiple tickets depending upon investors wallet score. A participant can stand a chance to win allocations of say 7 tickets worth $100 or 3 to 4 tickets worth $200.
The wallet score will remain the same for a participant throughout his SHO journey. Whereas, the allocation as per multi-ticket system will be calibrated and calculated at time of each SHO. Now, the chances of getting multiple tickets is based on the wallet points which are distributed in a particular manner.
The DAO Maker’s chain analysis system is the one which will decide the points for each participant. This evaluation of points combines the score of a participant taken from 4 sectors.
As SHO working on DAO Pad is compatible with EVM chains, this score will combine user’s assets present at each chain of custom networks. It includes Binance Smart Chain(BSC), Polygon(MATIC), Ethereum, Fantom and Avalanche.
All the assets present on these chains will be combined and for every $10,000 worth of combined assets, you will receive 0.1 point. You can earn a total of 50 points through total asset score.
You must be familiar with the various tokens from DEFI space. DEFI score is allocated with a total of 20 points. If you have holdings in the DEFI tokens including stable coins and governance tokens, for every $10,000 worth of tokens, you will receive 1 point.
This category has been assigned with 20 points but it is divided into 2 tiers.
Tier 1: Investing $10,000 worth assets in the tokens from tier 1 will earn you 1 point. Tier 1 tokens are given below.
Tier 2: Investing $10,000 worth assets in the tokens from tier 2 will earn you 0.5 point. Tier 2 tokens are different from tier 1 tokens and are given below.
The token or cryptocurrency of this category varies from SHO to SHO. Each SHO will have its own token which if the user holds, will receive certain points. This category has a maximum limit of 10 points.
If you hold these tokens worth $10,000, you will get 0.5 points. Lastly, all these scores will be combined and will decide your chance of getting a ticket for allocation.
The final upgrade in the SHO structure is in the priority system. As we have already seen, SHO does provide incentives for new investors, but it majorly focuses on strong holders or investors which have been investing in SHOs for a long time.
Now, to give a fair chance to every investor, the priority system was updated. It takes into account investors past 5 SHOs performance to decide their priority for the current SHO. Now this is done while considering the current tier range of participants and priority weight var.
Every successful allocation in an SHO will set your priority weight to 1. Whereas every time you don't get a ticket, your priority weight will increase by 1. Therefore, with each lost chance, your chance of getting an allocation in next SHO actually increases. Thus offering a fair chance to every investor.
After a basic familiarization with the DAO Maker let us now find out how to participate in a DAO Maker. Following is a detailed description explaining how to do so. Let’s Begin!
Before starting you need to first buy some minimum amount of $DAO and hold your tokens in the wallet for a certain period of time. So once you have done that you can go for the following steps.
Step 1: Register your account on the respected website and Log in to the account.
Step 2: Now you will have to finish up with your KYC. Check the documents that you can upload according to the country you are in.
Step 3: After your KYC is complete connect your wallet by clicking on ‘Connect Wallet’. If you are using a browser then you can use an extension to connect to the desired platform.
Step 4: The amount of $DAO staking or the number of tokens you hold in your wallet determines the DAO power. So in this step you have to make sure that you have enough holding in your wallet in order to participate.
Step 5: Now you have to sign up for a project. You can pick the project you would like to participate in and then click on ‘Research and Participate’. You can research about the project and make a decision whether or not you wish to participate in it.
Step 6: Once you have made a decision on which project you wish to participate in, you then have to click on ‘Participate’. Now, based on the DAO power you can now participate in SHO. For higher chances of winning, participate in as many SHOs as possible.
Step 7: Your last step would be allocating DAO power for sale.
If you win, your deposit amount which has been locked will be deducted on its own from your wallet and you will be given a token for the project you selected. The DAO power that you used for the project will be locked for a certain period of time. You can use the locked DAO power once it is unlocked for participating in other projects.
In case you did not win, your locked amount is unlocked and is sent back to your account. Apart from that your DAO power is not locked as it wasn’t used and you can use it to participate in other projects.
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