This is something that is a huge advantage. We have to understand the value that is brought to the table by not being beholden to VC firms.
In this video I discuss some of the things that were done and how the new funding mechanism can come from the network effect.
▶️ 3Speak
I think VC is great, but the way it's mostly done is worse than cancer to a company. You need to have VC that is rotating, and brings connections to the game and consulting. It should be rather international and every single investor should be a minor holder.
Once again it's all about decentralization. That's why I hate the idea of ETH being so big, VC or not, they have some major stakeholders and that can fire back in a horrific way.
That is true about ETH especially how it is structured. The consensus mechanism of PoS is going to make those large stake holders even more powerful.
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That is an interesting way to say, it'll be broken at work but still very functional for now.
And to extend on that, there are downsides to DAO-based funding. It's directed toward an account that might be corrupted, could be cut due to market swings, the DAO might have technical weaknesses, and overall people might get burned.
Are VC funding and DAO funding even of the same nature? Do they make similar time, resources, and goalpost propositions?
Are VC funding and DAO funding even of the same nature?
At this point I would say no. They are not even in the same league, either in direction or scope. Obviously, VC money far outpaces DAO. But the reality is the DAO money is going to focus upon those who have a larger vested interest as opposed to VC who are after the money and that is all.
While it is not perfect, the DHF basically funds those who are dedicated to Hive.
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The DHF will fund whatever the main stakeholders see fit, could be anything, it is very political :) and I love that tbh. But we should call it what it is.
Don't you agree?
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Nice 👍
I think not being beholden to VC firms is nice, there are way too many things that do not really succeed. It reminds me of the Gofundme and how it utterly failed for the gaming community as it left a ton of broken promises.
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VC= vicious clowns ? :P (jk of course )
I remember going to a VC conference in London about 8 years ago and my general feeling out of it was that at that point they were trying avoiding crypto related topics, maybe they were afraid of it. Now that might have changed, but still VC funding has transformed as now there are so many other alternatives to fund your project using crypto. Look at Hive, the perfect place for any startup while being supported by amazing communities.
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Summary: In this video, the speaker discusses the concept of new funding mechanisms in the context of cryptocurrency and contrasts it with traditional venture capital funding seen in Web 2.0 projects. The video emphasizes the power of creating money through cryptocurrencies as a funding mechanism and delves into the drawbacks of venture capital funding, such as the pressure to monetize projects for returns. The speaker highlights the decentralized and community-driven approach of projects like Hive, which utilize DAO funds to support community-voted projects without the pressure to monetize. The video also explores various ways cryptocurrency projects raise and utilize funds, envisioning a future where projects contribute back to the funding pool for sustainability and expansion.
Detailed Analysis:
The video starts by establishing the significance of exploring new funding mechanisms, particularly in contrast to Web 2.0's reliance on venture capital funding. The speaker points out that creating money through cryptocurrency is a powerful tool for funding projects without the pressure associated with traditional venture capital.
The speaker acknowledges the valuable service provided by venture capitalists in funding projects that banks would not typically support, but also highlights the downsides such as the pressure to monetize projects for returns.
The video transitions into discussing cryptocurrencies, specifically highlighting Hive as an example. Hive's unique setup with funds in a DAO allows for community-voted projects to receive financing without the strings attached, in contrast to VC-funded projects that may face pressure to monetize.
The speaker emphasizes the decentralized and community-driven nature of cryptocurrency projects like Hive, where funding is utilized for development without the pressure to prioritize monetization, thus avoiding user experience degradation.
Various funding mechanisms in cryptocurrency projects are explored, such as rewarding developers with native tokens, utilizing beneficiary rewards, and establishing liquidity pools for funding purposes.
Future possibilities are envisioned, such as projects contributing back a percentage of their revenue to the DAO for sustainability and growth. The potential for an expanded funding pool in a bullish market scenario is highlighted, discussing how increased funds could further fuel project development and innovation.
The video underscores the paradigm shift towards a new business model fueled by cryptocurrency funding, contrasting it with the data-driven advertising model prevalent in Web 2.0. Key projects like Podping funded through Hive's DAO are highlighted as examples of this new approach to funding and development.
In conclusion, the speaker encourages viewers to consider the transformative power of these new funding mechanisms, envisioning a rewrite of established rules in the monetary and project development arenas. The video ends with a call to embrace the novel concepts shaping the future of funding in cryptocurrency projects, setting the stage for a more sustainable and community-driven approach to project development and growth.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.