The BitDAO community just approved a proposal to allocate $20 million in funding to establish AfricaDAO, a new decentralized autonomous organization and a new investment fund created to accelerate web3 development in Africa.
BitDAO, founded in 2021, wants to encourage the use of cryptocurrencies worldwide by funding projects and assisting with web3-based R&D initiatives.
Data from the voting page shows the vote ended on Tuesday with unanimous approval from all participants. The vote saw participation from 38 wallet addresses contributing 181 million BIT tokens in support of the AfricaDAO proposal.
According to the proposal, Africa is poised to be disrupted by Web3 because it’s the fastest growing and youngest population continent on the planet with great smartphone penetration (approximately 50%), 4G internet user-base growth, (going from 150M in 2022 to 300M by 2025) and increasing crypto adoption due to hyperinflation, instability, and high unemployment.
The proposal also highlighted three main focus areas for the fund including funding rounds for African companies, investments in Web3 talents across Africa, and supporting Web3-based educational initiatives. 90% of its funds will go toward investments and acquisitions in target companies while 5% will be used in acceleration, that is to say, sourcing and empowering the best talent. The remaining 5% will be used to organize Web3 educating initiatives and DAO operations.
Several partners have already soft committed $105 million to AfricaDAO. Following a legal assessment, BitDAO’s $20 million financing will enable it to join AfricaDAO as an anchor partner. Other partners include Polygon and Synthetix, among others.