Ceres DAO – the world’s first DAO governed Web3.0 decentralized digital asset management protocol
As the DAO (Decentralized Autonomous Organization) is predicted to be the next “Big Wave”, the idea of a “DAO” has attracted the attention of investors such as SpaceX founder, Elon Musk, venture fund, Sequoia and billionaire Mark Cuban.
According to data from Deepdao on December 30, 2021, more than $11.5 billion in crypto assets and approximately 2 million members are managed by 188 DAOs. DAOs come in a variety of sizes, including, but not limited to, enterprises, social media, and charities.
There are 56 DAOs with a market capitalization of more than $1,000,000, accounting for 33.9% of the market share, and 8 DAOs with a market capitalization of between $500,000 and $1,000,000, accounting for 4.8% of the market share. Among all DAOs, crypto enterprise is one of the most important tracks of DAOs, and it has become the new benchmark for connecting investors and projects seeking funding.
Pitango, one of Israel’s leading venture capitalists, launched a DAO to manage its investment in Web3. Pitango has over 3 billion assets under management and over 250 companies in its profile, and is one of the most promising venture capital in Web3.
Sequoia India and Southeast Asia have launched two new funds, a $2 billion early-stage enterprise and development fund for India and a $850 million dedicated fund for Southeast Asia, both targeted at projects on Web3.
Despite DeFi’s explosive growth, it has some problems. For example, centralization leads to a higher threshold, which prevents smaller institutions and retail investors from entering the market. Retail investors rarely have access to all the necessary information compared to institutional investors with more connections and critical information. This information gap causes huge sales pressure during the initial phase of the project. Investors transitioning from traditional capital markets to DeFi must entrust their assets to a centralized governing body, which is linked to the risk of transactions and regulation.
The DAO is a significant innovation in crypto. Venture DAO enables retail investors to participate in the initial phase of the project. Ventures DAO is a community-governed group that seeks to invest the combined capital of the community. Venture DAOs differ from traditional investment vehicles in that they are transparent in decision making. The DAO is bringing its influence to all Web3 products.
Ceres, the goddess of agriculture, grain harvest and fertility, is a symbol of abundance in Greek mythology. The Ceres DAO, named after Ceres, hopes to bring value to all investors. Ceres DAO is a decentralized digital asset management protocol powered by Web 3.0. The mission of Ceres DAO is to bring decentralization and transparency to asset management. Ceres DAO has a standardized DeFi asset investment model to provide non-custodial and decentralized crypto asset management services, which helps mitigate the risks of DeFi. Investors can enjoy returns without the risk of volatility and the need for active management.
Ceres DAO adopts a dual token economic model similar to weighted voting rights in traditional capital markets. It has two tokens, namely CES and CRS. CES is a voting-rights token, while CRS is a non-voting-rights liquidity token.
Users can obtain CES through minting, while CRS is achieved by staking, secondary market or CES conversion. CES can be converted to CRS in the ratio 1:1. There is 20% transaction tax while converting CES to CRS and is allocated as follows: 10%: Treasury; 5%: LP Pool (converted into stable coins and matched with CRS tokens for LPs); 5%: Commission (2.5% for CRS buyback-burns and 2.5% for operations).
According to the Ceres DAO protocol framework, CES can be mined through VC pools (mainstream assets: BTC, ETH, BNB, FIL, etc.) or bonds (USDT, USDC and BUSD). 50% of the assets will be channeled to the Ceres DAO Treasury. Up to 1 billion CES are mined a day.
CRS can be achieved by both CES and CRS staking. The daily CRS maximum output is 100 million, and if the staking output is less than 100 million, the remaining CRS will be burned.
Each DAO or node has its own unique NFT (Rich Panda’s Chain), NFTs, and the rights and benefits of their DAOs or nodes can be transferred independently. (Note: DAOs enjoy the benefits of nodes.) Funds collected during NFT mining will be distributed equally across Treasury (50%) and royalty fees/taxes (50%).
The Treasury is mentioned several times in the article above and is an important component of the Ceres DAO protocol architecture. This includes a pool of strategic investment assets representing the vision of Ceres DAO. Ceres DAO Treasury initially adopts a “beta” investment strategy. Ceres DAO will allocate its funds to top-class crypto assets, generating revenue through DeFi lending protocol or asset appreciation.
As the Ceres DAO community continues to grow, more DAOs and institutions become increasingly involved.