The platform’s founders warned earlier that with out new funding, MetaDAO would have solely 24 months of runway.
MetaDAO’s neighborhood in the present day rejected a proposal to mint and promote $6 million price of META tokens to 2 enterprise capital companies, DBA and Variant, at a roughly 30% low cost.
MetaDAO, a Solana-based governance platform for decentralized autonomous organizations (DAOs), noticed the vote shut in the present day, Oct. 13, with over 878,800 USDC in quantity, marking a transparent pushback in opposition to a deal that might have diluted present holders by round 7-8%.
If handed, the deal would have minted roughly 1.47 million new META tokens, with the 2 VC companies every capable of buy $3 million price of META for $4.0795 per token — about 30-40% decrease than market costs in the course of the voting interval. The tokens would have been totally unlocked, the MetaDAO crew stated within the proposal, including that they “don’t imagine in locking up non-team provide.”
The small crew behind MetaDAO — two founders, a part-time designer, and an X intern — stated that the proposal was meant to increase runway and permit for potential hiring. At the moment, the DAO holds about $1.8 million in money, sufficient for roughly 24 months of operations, the vote description notes.
In contrast to Snapshot, the place voting is only primarily based on token weight, MetaDAO makes use of a futarchy system, which mixes prediction markets with governance. In easy phrases, the neighborhood can vote on high-level objectives, and markets assist predict which selections will obtain these objectives, letting the DAO make extra data-driven selections relatively than simply counting votes.
In August 2024, MetaDAO raised a complete of $2.2 million in a funding spherical led by Paradigm.
‘Improper Proposal Construction’
Earlier than its conclusion, the vote drew criticism from a few of the neighborhood members, who argued that the deal gave VCs too large a reduction. After the MetaDAO neighborhood rejected the vote, DBA co-founder Jon Charbonneau wrote in a Telegram group:
“[…] I feel the 2 largest high-level issues with our preliminary proposal had been: 1) An excessive amount of of a reduction to identify worth at time of posting. 2) The method of posting particular OTC deal phrases is definitely simply the incorrect proposal construction right here.”
Charbonneau added that future capital raises could observe a special mannequin, with the crew setting pricing bounds and finalizing execution bilaterally, much like how conventional boards deal with share issuance.
Gabriel Shapiro, the founding father of crypto-native authorized tech group MetaLeX Labs, commented on the vote in an X publish in the present day, saying that MetaDAO is “the one place I see the DAO ethos truly thriving,” including:
“I can not image one thing like that on Ethereum DAOs in the present day, they’re completely captured by an expert governance class.”
META’s worth jumped greater than 16% to over $6.95 on the vote’s conclusion in the present day, a lift additionally supported by MetaDAO’s earlier success with UMBRA, a privateness coin on Solana that was 50x oversubscribed throughout its preliminary coin providing on MetaDAO.
The Defiant reached out to MetaDAO for additional feedback on the now rejected deal, however hasn’t heard again at press time.
