DAO Maker is a blockchain project launchpad — how does it shake out compared to other players in the space?
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What Is DAO Maker (DAO)?
Besides its popular DAO Pad product, DAO Maker also provides a range of additional services to nascent blockchain-based projects. These include incubation services, operations and advisory services, and another of its flagship products — social mining. Projects can use social mining to reward value-adding community members with their native token — helping to raise awareness, incentivize participation, increase liquidity and grow the number of holders.
The platform is powered by its native utility token, known as DAO. The token is used to participate in token sales on the DAO Pad platform, and can also be staked to earn a yield via one of DAO Maker’s vaults. The token will also be used for community governance in the near future.
DAO Maker is the brainchild of co-founders Christoph Zaknun, the platform's CEO and an early mover in the initial coin offering (ICO) space, and Giorgio Marciano (CTO), a heavily experienced entrepreneur and IT engineer with over 13 years of experience in software development. The two co-founders are joined by other C-level staff, notably including Hassan Sheikh (CMO), a former lecturer in Mathematics and experienced business strategist.
How Does DAO Maker Work?
Like most modern blockchain project launchpads, DAO Maker requires that users lock up a fixed minimum number of DAO tokens in order to participate in launches.
- Tranche 1: 500–999 DAO Power
- Tranche 2: 1,000–1,999 DAO Power
- Tranche 3: 2,000–3,999 DAO Power
- Tranche 4: 4,000–9,999 DAO Power
- Tranche 5: 10,000+ DAO Power
Each tranche brings with it an increased chance of winning.
If a user wins a participation slot, their allocation will be automatically funded by their USD Coin (USDC) balance, and their DAO power will be locked for 10 days — after which it resets. Unsuccessful users will be free to spend their DAO power again right away.
Besides the DAO Pad, DAO Maker is also developing a new flagship product known as Venture Bonds. This will allow users to purchase bonds from startups, following which DAO Maker will deploy their funds to overcollateralized DeFi and CeFi lending markets to earn a yield. This yield is then distributed to startups to finance their growth and development, while bond purchasers earn project tokens and/or equity in return.
Once the bond matures, users will receive their funds back and will keep any yields they have accrued in the form of project tokens or equity.
As it stands, DAO Maker's DAO Pad, Vault and Social Mining features are online, but the development of a number of other products is ongoing. According to the official roadmap, the platform is scheduled to launch the beta version of its Venture Bonds product in Q3 2021, and will begin supporting equity offerings by Q2 2022.
How Are Infinity Pad and DAO Maker Related?
What Makes DAO Maker Unique?
Despite offering a full range of both B2B and B2C products, DAO Maker is best known for the DAO Pad and DAO Maker token (DAO). As such, it’s best to compare it with competing token sale platforms — including Polkastarter, PAID Ignition and BSC Pad.
Some of the main distinguishing features that separate it from these platforms currently include:
Owing to years of experience in the blockchain space (since 2017), DAO Maker has been exposed to a diverse range of blockchain projects. It has also worked with several at the incubation level, providing the team behind the platform with a deep understanding of what it takes to build a successful product.
This manifests as highly stringent selection criteria for projects looking to launch on DAO Pad — with only the highest quality projects making the cut. The result is an impressive track record for its token launches with even the worst-performing token sale achieving at least 3x the SHO price, while the best performers have achieved well in excess of 100x returns at their all-time highest value (e.g. Orion Protocol).
DAO Maker, on the other hand, focuses on ensuring each winning participant gets a relatively high allocation — usually $500 to $1,000 per person (depending on the project). In many cases, these tokens are 100% unlocked at their token generation event (TGE), whereas others are partially vested over a defined period of time.
DAO Maker has made accessing early-stage investments a simple process by providing a single entry route via the DAO token. Anybody with a fully verified account that has staked at least 500 DAO tokens will be eligible to enter the lottery to win a slot in their selected project.
The DAO token is one of the few launchpad tokens that is non-inflative. The total supply is capped at 312 million and this number will not be increased. Instead, the rewards provided by each yield vault are contributed by DAO Maker ecosystem partners.
How Does DAO Maker Compare With Polkastarter?
Though the platforms are similar in that they require users to stake tokens in order to potentially access early-stage investments, the way they go about this differs somewhat.
For example, Polkastarter requires users to hold their POLS tokens for at least seven days before they are able to register for an IDO, whereas DAO Maker does not enforce any wait time. Moreover, DAO Maker handles the KYC and registration process for all projects, whereas this is generally handled independently by each project launching on Polkastarter (at least for now).
Polkastarter also primarily hosts a small final raise for VC-backed projects, whereas DAO Maker typically handles a larger public raise for its projects — ensuring that participants get their tokens at comparable rates to earlier-stage investors.