Title: Financing Working Group Authors: Bruce Editors: Bruce, Tracy, Marcus, and Sally Date Created: 2023/04/10

TL;DR

Our self-funded treasury for Stage 1 is running out soon, and we need to raise funds for LXDAO’s growth in Stage 2. This will be a temporary working group focused on raising money for LXDAO. There is no fixed duration for the Financing Working Group. This group will be dismissed when reaching the funding goal.

Proposal Description

Goals

Our goal is to design appropriate funding plans and targets for LXDAO’s Stage 2 growth and achieve those targets.

At the moment, 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 goals 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
• Raise enough funds

Team settings

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

Leaders will handle 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.

Duration

Flexible duration

Rewards

We adopt an incentive system. Financial advisors and consultants will receive a progressive incentive based on the amount:

• For amounts <= 10K, they will receive 0.5% of the amount
• For amounts > 10K and <= 50K, they will receive 1% of the amount
• For amounts > 50K, they will receive 1.5% of the amount

For example, for a deal of 150K, the financial advisor will receive 10K x 0.005 + 40K x 0.01 + 100K x 0.015 = 1.95K.

Leaders, assistants, legal consultants, and active consultants will receive 0.5% of the total funds raised and an extra 8000U + 4000LXP 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.

Questions

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

For simplicity, co-initiators can be representatives of LXDAO to sign the SAFT at this stage. Mostly BruceXu. 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.