DeFi Alliance, a Web3 accelerator, announced today that it will be renamed Alliance DAO. The move comes at a time when decentralized autonomous organizations (DAOs) have demonstrated their potential to raise enormous sums of money for various causes in a short period of time.
Over 300 contributors have joined Alliance DAO, which has raised $50 million in early contributions, according to the organization. The DAO claims that the adjustment is necessary because reaching the target of one billion Web3 users will require more effort than the DeFi Alliance alone can provide.
A decentralized autonomous organization (DAO) is an online community that employs smart contracts to handle member involvement, funding, voting, and other activities. ConstitutionDAO, which collected $45 million in November to buy an original copy of the United States Constitution, is often credited with bringing DAOs into the mainstream.
DAOs can be formed for a variety of reasons. Alliance DAO members are also banding together in an effort to better incubate crypto companies.
“We will be constructing the infrastructure for an ecosystem that promotes the finest Web3 entrepreneurs to receive accelerator services and then continue as mentors to later founders,” the DAO’s head architect Dane Lund told Decrypt. “We also hope to enlist the help of other DAO Contributors (builders, subject matter experts, and service providers) to assist Web3 founders.”
“By establishing a DAO, we are able to further distribute the job of supporting founders and provide contributors with a more direct interest in the outcome of their efforts, incentivizing high-quality contribution,” Lund explained.
Project leaders and crypto VCs reacted positively to the news of the DAO’s formation. CoinShares Chief Strategy Officer Meltem Demirors tweeted, “Our team @CoinSharesCo is happy to join @alliancedao.”
In a blog post announcing the creation of the DAO, Alliance DAO describes itself as a “digital startup nation,” claiming that DAOs “sit at the crossroads of the trends that create the perfect storm for them to develop,” including being largely digital and transnational.”
The Chicago DeFi Alliance, founded by Imran Khan and Qiao Wang in April 2020, has featured 0x, dYdX, Kyber Network, IDEX, Olympus DAO, Sushiswap, and Synthetix in its accelerator program.
Alliance DAO claims it will produce literature in the coming months that explains how the DAO will operate, its governance structure, and its services.