Thoughts on Acquisitions by dxDao

I’ve been thinking a bit about dxDao in relation to acquisitions and want to propose a few points for consideration.

  1. dxDao’s core competency is good governance of smart contracts.
  2. dxDao does not have a core competency in Angel or VC investing.
  3. dxDao should only acquire working products with proven revenue streams that can benefit from better governance.
  4. Acquisitions should be (R-C)*1.5, annual revenue minus projected costs of providing governance multiplied by 1.5.
  5. If revenue is uncertain, 0 eth acquisitions only should be considered. Don’t throw away the treasury on speculation.

It’s critical that dxDao focus on its core competencies, otherwise we’ll just be throwing away eth. VC is not a core competency - defi governance and upgrades is. That’s why, even though its more expensive, I strongly advice we only acquire dapps with proven revenue streams. Angel/VC on speculative projects is a fast way to throw the treasury away. But if theres a project with proven revenue and we purchase at 1.5x minus governance costs, its an easy win for dxDao. Devs who need to hand off their project (similar to how gnosis needed to hand off dutchx) will be willing to accept low acquisition prices.

Obviously I have projects I would like dxDao to acquire but I believe these will need substantial history before its possible, following the 4 points listed, or will need to be acquired for 0 eth.

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I can`t agree more!

Our focus at least short term should be to get core competency in governance of smart contracts.
With that it will be important to work on:

  • Untouchable governance tools accessible by anyone in the world via ENS and maintained by the DXdao.
  • Not rely on third-party services like the graph
  • Provide a clear overview about the DXdao on-chain system with a documentation
  • Clear governance process defined and ratified by the collective
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@ethereal @corkus

Cool to see a pretty realistic take on the capabilities of DxDAO. Think this is an area that can be of high value for the Ethereum community if done well.

Regarding VC/Investing capabilities, perhaps Venture DAO might be of help when needed in this area. It’s a DAO mostly made up of crypto founders + handful of VCs, we’d defs be open to partnering up etc.

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