DAO: How Projects are Selected for Funding

September 28, 2023

We believe in the wisdom of crowds in predicting the future. In a classic Venture Capital fund, decision-making is fraught with bias leading to bad funding decisions as can be seen in companies like Softbank which gave WeWork over $4b and had to write off most of it. Spreading the decision-making power to a variety of individuals from science, innovation, and industry, and those who actually invest should yield better results. In the blockchain world, this wisdom-of-crowds concept is explored under the term Oracles

The dao of DAO

A decentralized autonomous organization (DAO) is a collaboration format invented in the blockchain era. As with every organization, it revolves around a certain purpose. The Marabou DAO  is a governance body for bringing funding projects to the platform. 

The Process of Selecting Projects

Talents apply with their projects for funding with the Marabou DAO. They make a pitch. Right at the start of Marabou, there is one major rule: yay or nay for accepting the project. In a DAO, the rules are defined in the software that runs the DAO. Members of the DAO receive voting rights in the form of governance tokens. There is a total amount of tokens and they are distributed through a guideline defined in the DAO code. 

At the start of the projects, tokens are provided to the founders, owners, and partners of Marabou. and the scientific board of advisors. Subsequently, funding project owners and all investors will hold some of those tokens. The number is concurrent with the amount of money invested. 

During a hearing period, token owners can vote for project proposals. The more tokens a user owns, the more votes can be placed. (Although we are thinking about a more inclusive voting mechanism) In the beginning, most tokens are controlled by the core Marabous and the advisors. However, as the Marabou platform grows, more and more tokens are distributed to the innovators and their investors to make Marabou a true wisdom-of-the-crowd project. 

What the governance token is good for

The governance tokens are the same that are used to invest in a project. They have a monetary value as they can be traded freely. In the beginning, the governance tokens have a nominal value but as there is no demand for it, little real value. As Marabou grows and the project’s values appreciate, so should the government token increase in real value. 



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