Stacker Ventures Research Memo

Stacker Ventures Research Memo

By jsev | NFT Matrix | 7 Apr 2021


What: Stacker Ventures is a community-run protocol for initiating and managing pooled capital on the Ethereum blockchain. Structured as a DAO, Stacker Ventures initiates decentralized funds, accelerates portfolio investments through an involved community, and provides checks and balances to fund management. The DAO's first fund is an expedited crypto-native fund that invests in up-and-coming ERC-20 projects

 

Why: Stacker Ventures is built and maintained by contributors from all over the globe with the common goal of building an alternative to inaccessible early-stage capital investing.

 

Products:

Accelerator

Token Permissioned Due Diligence Committee

How: STACK Token. Different tiers provide access to the products.

Users with at least 10 STACK will have access to the Stacker Ventures Accelerator. With a vested interest in the success of the projects, these members will have access to:

  • Referral rewards (earn STACK if Fund 1 invests in a project a stakeholder refers)
  • Early access to project betas
  • Bounties
  • Communication lines with early-stage project teams
  • The ability to earn reputation within the DAO

 

10,000 STACK provides access to the due diligence committee. Due Diligence Committee members will:

  • Conduct due diligence on deals and discuss within the group
  • Vote on which opportunities Fund 1 invests in
  • Help guide early stage projects through the funding process
  • Pass the vote on to the DAO Council to implement
  • Possible first access to future funds
  • Have access to dealflow if extra allocation is available or if Fund 1 decides to pass on an investment

 

DAO Council - 20,000 STACK and Approval

Individuals with a significant stake in the DAO will be able to apply to join the DAO Council. While only DAO Council members can submit proposals, all STACK holders can vote on every proposal, and anyone with more than 10 STACK can submit a pre-proposal to the council for review

 

Token Model

Circulating supply: 41,372

Max supply: 1,000,000

Circulating Market Cap: $1,252,311

Fully Diluted Value: $30,270,000

Token Distribution:

aa68cb306a79f98697f3520ce1de589148856b90967a228d5d3ae5ce4cdbeb42.png

Early investors:

  • Senary Ventures
  • Fourth Revolution Capital
  • Supernova Fund
  • Cabin VC

 

Audit and Source Code: https://docs.stacker.vc/docs-stacker-ventures/audits/smart-contract-audit-report

Team (pseudonymous):

5b0614f35e534c9593c4175547100a09d9c3a98d028212442beea9f79b4a5029.png

Analysis:

Pros:

  • Interesting concept. Also a popular narrative that ties into the meta-narrative of democratizing investments
  • Great potential to provide a better governance model and incentive than most DAOs.
  • Early backers hold a smaller portion of funds than most projects.
  • Liquidity mining rewards for Fund 1 are still very good.
  • Team is active in discord, twitter, and telegram channels. Community channels, website, and document are all well-organized.

Cons/Risks:

  • Fund 1 hasn’t executed yet, so the DAO model hasn’t been stress-tested.
  • Pseudonymous team is difficult to trust.
  • Holding 1,000 STACK isn’t a small feat for a regular investor – makes one wonder if it will truly be community run.
  • The STACK miners may be unaware of the capability to do more with STACK then exchange it for other tokens.
  • Projects are only token based – would be more innovative to enable equity investing as well via a decentralized venture fund.
  • It would seem a truly decentralized venture fund would raise capital from the community, so execution of fundraising may be a bit at odds with the values it espouses

Verdict:

Innovation: 8/10

Tokenomics: 9/10

Team: 5/10

Risk: High

This project is worth taking a small risk with. It shouldn’t be a large portion of a portfolio (<5%). Although anonymous, the team seems to be otherwise active, transparent, organized, and focused on a longer-term vision and value proposition. The token could appreciate between 2-20X depending on the future circulating supply and success of marketing efforts.

 

How do you rate this article?


1

0


NFT Matrix
NFT Matrix

Defi, NFT, and stuff

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.