Title: Financing Working Group Authors: Bruce Editors: Bruce, Tracy, Marcus, Satoshi Natsu, Echo, and Sally Date Created: 2023/04/17

TL;DR

Our self-funded treasury for Stage 1 is nearly depleted, and to support the growth of LXDAO in Stage 2, we need to secure additional funding. To achieve this goal, we will establish a temporary working group focused on raising funds for LXDAO. This group will be disbanded once the funding target has been reached. The maximum duration of this group will be 6 months. If we cannot secure sufficient funds within 6 months, we will explore alternative funding methods like crowdfunding.

Proposal Description

Goals

We aim to design appropriate funding plans and targets for LXDAO’s Stage 2 growth and achieve those targets.

Our funding goal for Stage 2 is 1.5 MU to support our operations for the next two years. This amount may be subject to adjustment depending on the circumstances.

Working details

• Design funding strategies based on our goal
• Create the financing deck
• Buidl connections with potential investors and presenting our project
• Follow up on the progress and feedback
• Prepare SAFT and legal files
• Help to build the legal structure for LXDAO if needed
• Raise enough funds

Team settings

• Leaders: 1 or 2
• Assistants: 2 or 3
• FAs and consultants: unlimited

Leaders will handle the day-to-day management and coordinate the progress of the entire Financing Team. They will play a core role in presenting LXDAO to potential investors and should have strong English skills. They must also have enough time to devote to this initiative and be able to prepare legal files.

Assistants will support the Leaders in organizing meetings, managing investors, following up on feedback and progress, attending the pitch session, taking meeting notes, answering questions, reviewing investment tables, and recording PoC. They should also have strong English skills and enough time to devote to this initiative.

Financial Advisors and consultants will be unlimited and help refer to appropriate investors or secure funds. Their contributions will be recorded by the assistants. We might have other types of consultants for handling legal structure, etc.

Duration

6 months.

Rewards

We adopt an incentive system. Financial advisors and consultants will receive a case-by-case incentive based on the amount and fund source, from 0.5%-5% of the funds. We will negotiate during the process.

Leaders, assistants, legal consultants, and active consultants will receive 0.5% of the total funds raised and an extra 5000U + 5000LXP from the rewards pool based on proof of contribution.

Rewards will be distributed based on funding milestones. One-third of the rewards will be released upon reaching 50% of the goal, another one-third upon reaching 75% of the goal, and the final one-third upon reaching 100% of the goal.

Notes: The budgets do not include the legal structure setup fee and legal consultant fee. We still have some legal issues to figure out and make decisions later.

Questions

Who will be the representative of LXDAO to sign the SAFT?

For simplicity, co-initiators can be representatives of LXDAO to sign the SAFT at this stage. Mostly BruceXu. If we have to create a legal entity for receiving funds, the legal entity will represent LXDAO.

Later, we will design a legal structure, and Bruce will transfer the authority. Please vote against it if you don't agree or have better ideas.

Key Results

Our primary objective is to meet our fundraising goals and collect enough funds to support LXDAO’s Stage 2 missions and tasks as soon as possible. We will provide weekly and monthly work reports.