Introducing Alpha Brain Capital DAO
A decentralised community fund that generates passive income and capital growth for its holders through profits returned in the form of reflections, token buy backs and dividends.
The problem with centralised wealth transfer.
The current landscape in both traditional and crypto markets is one where finances move from the hands of less informed retail investors, namely the majority, into the hands of the few wealthy individuals and groups. These ‘entities’ often retain a stronghold on projects and token economies through buying up much of the supply as early investors and subsequently manipulating the markets at both the misfortune of the project founders and retail investors. Unfortunately projects have little choice but to still engage with such ‘entities’ as they are the only means through which projects can build a suitable network to launch and receive the funding that is required. Ultimately however, leaving themselves, their project and their investors at the hands of those large token holders.
Beyond private sales, retail investors in general have limited time, understanding and resource to make good investment decisions and act upon them promptly due to the fact that most have full time jobs and other primary commitments. As a result not only are retail investors limited in how well they can execute their investment strategies, but also in the investment opportunities they have access to. This is more so the case in the crypto markets where investment opportunities are several (yield farming, trading, IDO’s, etc.), but often require significant background research in order to access, often putting many potential investors off. In a nutshell then, the problems with the current model can be expressed as follows:
- Retail investors often have limited time and resource to access diversified high yield opportunities (private sale, yield farming, trading).
- VC funds gain early private sale investment into projects and dump on retail investors.
- Projects often face difficult launches as private investors dump on launch, create constant sell pressure and provide little value.
A decentralised solution
Multichain Capital (MCC) presented an interesting and innovative approach to demonstrate how through holding a single token, holders could benefit from investment and capital growth mechanisms they may not have previously had access to. Furthermore, MCC presented a neat way of returning these profits to holders in the form of buy backs and token burns. Nevertheless, we believe MCC was somewhat limited in the problem it aimed to address. Therefore, building upon the philosophy presented by MCC, a solution to the problem presented above could be achieved through the following:
- Create a decentralised community fund & leverage partners & industry experts to utilise and grow fund capital through diversified investments.
- Return fund profits to token holders through dividends and buy backs benefitting all rather than a few.
- Projects that receive investment from the decentralised community fund immediately gain the vested interest of all members providing instant community and value.
How does it work?
Buyers and sellers of the $ABC token are charged a transaction fee which is used to build the treasury wallet. The treasury wallet is then invested in a diversified portfolio. Profits are then distributed back to holders. It’s as simple as that. The way in which transactions are taxed and how profits are distributed is where there is room for creativity. The model adopted by Alpha Brain Capital DAO is illustrated below.
How is Alpha Brain Capital DAO different to other MCC style projects?
There are really two fundamental areas in which a project that adopts a similar philosophy to MCC could demonstrate greater value.
- The first is through the smart contract and the mechanisms through which token holders are rewarded. Over the last few weeks we have seen several variations on this, including reflections and buy backs, ETH based dividends and also reflections in the form of ETH.
- The second is through the strategy the project adopts in managing the treasury funds. This is of particular importance as we believe it has been given little emphasis on recent projects and often projects provide very little transparency as to investment strategy.
At Alpha Brain Capital DAO we have taken the best of what has currently been presented and stitched together that which we feel works whilst also adding our own touch. Our token contract offers high reflections to holders in the form of $ABC tokens or ETH, the potential for buy backs as well as the ability for holders to claim dividends directly in the form of ETH.
However, the most significant difference is that we will operate the treasury as a traditional fund. We will onboard partners who will be incentivised through tokens to present profit making opportunities to the fund. We will use this network to gain early access into private sale opportunities, provide projects with private sale funding and therefore access to our community of holders who will by default have a vested interest in the projects success, that is real value! Beyond this we will engage expert Yield Farmers and Traders to diversify investments. Finally the long term vision is to have this all operate under a decentralised structure through our DAO. Our token holders will be an integral part of the project and fund and will hold decision making power through their tokens.
Who is the Team behind Alpha Brain Capital DAO?
We are a core team of six individuals, all of whom have significant experience in the crypto space having been involved since the previous bull cycle in 2016–2017. Our product development team consists of three developers with significant web3 and smart contract experience . Our business development team is formed of three individuals with distinct fields of expertise, including; experience in launching crypto projects through the traditional IDO route, marketing/partnerships and investment/trading. Beyond the core team we also have several external entities working on and contributing to the delivery and success of the project. The diversity of experiences the founding team brings gives us much confidence that we will be able to execute on our vision with Alpha Brain Capital DAO.
