DeFi Alliance, a crypto business accelerator based in Chicago, has modified its organizational structure to become a decentralized autonomous organization. More than 300 individuals have contributed $50 million to the DAO, which will be used to assist Web3 startups.
In a blog post published on Thursday, the team explained the newly established AllianceDAO. The DeFi Alliance team described the DAO as a “digital startup nation” that was built by a collaborative community of founders from various crypto and non-crypto enterprises.
A DAO is a blockchain-based organization that uses smart contracts to implement encoded, automatic rules. DAOs are a new type of corporation that allows a community or group to organize themselves in a decentralized manner and make decisions using a token-based voting system.
DeFi Alliance, which was created by Imran Khan and Qiao Wang in early 2020, has accelerated 90 businesses, including some of the most commonly utilized DeFi projects on Ethereum, such as 0x, Alpha Finance, dYdX, Kyber, Olympus DAO, Paraswap, Ribbon Finance, Sushiswap, Synthetix, and Zerion, to mention a few.
Twitch co-founder Kevin Lin, Gemini founders Cameron and Tyler Winklevoss, OpenSea co-founder & CEO Devin Finzer, Terra founder Do Kwon, Aave founder Stani Kulechov, Circle founder & CEO Jeremy Allaire, and others were among the 300 contributors to AllianceDAO’s initial investment round.
In an incentivized DAO environment managed by all community members, AllianceDAO contributors will join as mentors of future Web3 firms. Web3 is the next generation of the decentralized Internet, and it runs on public blockchains such as Ethereum.
In the next months, AllianceDAO plans to provide a whitepaper with further information on its organizational structure and governance.