BOT-08: Strategic Allocation in Foundation Robotics

TLDR

A proposal to allocate $203,500 USDC from the DAO treasury to secure 5,000 shares in Foundation Robotics at $38.75/share, implying a $1.1B valuation. Foundation is a U.S.-based humanoid robotics company that achieved its first paid deployment within 11 months of founding. It is also the only U.S. player openly building for defense applications.

This proposal is not just about Foundation Robotics. It also asks the DAO to decide whether our portfolio should include defense-focused companies or remain purely commercial.

The choice is yours.

Executive Summary

Foundation Robotics was founded in April 2024 and achieved first paid customer deployment by December 2024. The company's rapid progress stems from strategic acquisitions: Boardwalk Robotics (IHMC's commercial arm with decades of humanoid expertise including DARPA Challenge, NASA Valkyrie) and Rebelnoids (Technical University of Munich AI Lab, leaders in physics-based foundation models).

Foundation’s technology has notable differentiators. Their proprietary cycloid actuators deliver 160NM torque versus 100NM from Figure AI and Tesla, while requiring less maintenance due to low-contact rolling design. On AI, Foundation's Deep Variational Bayes Filter models allegedly understand real-world physics and dynamics, enabling training on hours versus 100+ hours required by competitors' behavior cloning approaches.

The Defense Question: Unlike peers who have pledged to avoid military applications (Figure AI, Boston Dynamics, Agility Robotics) or removed defense work (Apptronik), Foundation is the sole U.S. humanoid robotics company committed to defense. This raises a fundamental question for the DAO: should XMAQUINA back companies serving the defense industry, or limit allocations to purely commercial robotics applications?

This allocation offers exposure to a well-executed humanoid robotics company at a key inflection point, but asks the DAO community to make a value-based decision on defense involvement.

Technology & Product

Cycloidal Actuators: Foundation employs proprietary cycloidal drive actuators featuring: • Peak torque: ~160 Nm (source: Sacra, HumanoidsDaily) • High impact resistance and low backlash • Low back-drivability (<1 Nm), enabling safer human-robot interaction

Physics-Action Model: Foundation promotes a hybrid AI architecture that integrates physical reasoning with data-driven learning. This contrasts with the behavior cloning methods used by most competitors, offering more efficient training and greater adaptability in dynamic environments.

Phantom MK1: A full-size, bipedal humanoid designed for repeatable industrial tasks. The system meets industrial-grade strength requirements and is built for practical deployment in real-world environments.

The Defense Question

Industry Context: Leading U.S. humanoid robotics companies have publicly distanced themselves from defense-related work. Figure AI founder Brett Adcock has stated the company will pursue “no military work ever.” Boston Dynamics has signed a pledge against weaponizing robots, a position echoed by Agility Robotics through its own public commitment.

Foundation’s Position: Foundation Robotics takes the opposite approach. It actively markets dual-use capabilities, including future battlefield applications, framing its work as essential to U.S. technological competitiveness. Foundation is already deployed in Department of Defense maintenance and aircraft support operations. The company identifies itself as the only American humanoid robotics company openly committed to defense applications, deliberately filling a strategic niche its competitors have avoided.

Strategic Decision for the DAO

This proposal requires the community to consider three dimensions: a capital allocation decision, an ethical decision, and a values alignment assessment.

The Strategic Opportunity: From a risk-reward perspective, Foundation’s position offers distinct advantages. As the only American humanoid robotics company openly committed to defense applications, it operates in a large, under-addressed market that major competitors have deliberately avoided. This creates meaningful differentiation and reduces direct competition in a multi-billion-dollar segment.

The Ethical Consideration: The DAO must assess whether allocating capital to dual-use robotics, including potential future military applications aligns with its values. Foundation’s current deployments are focused on maintenance and aircraft support, not weaponization. However, the company’s stated intent to explore battlefield applications calls for careful ethical consideration.

A Defining Decision: If the DAO determines that dual-use robotics aligns with its mission, Foundation offers differentiated exposure to breakthrough technology with reduced competitive pressure. If the community prefers to limit allocations to purely commercial robotics, Foundation falls outside that mandate, regardless of technical strength or market traction.

This vote will define XMAQUINA’s stance on defense-aligned robotics for all future capital allocations.

The Deal

The DAO has secured access to participate in Foundation Robotics’ $1.1B valuation round through a single-layer SPV managed by a licensed third-party platform. This SPV sits directly on Foundation’s cap table, offering clean and direct exposure to the company’s common equity.

The structure ensures institutional-grade access under transparent, investor-friendly terms. The SPV is operated by a trusted and regulated intermediary with experience in primary allocations for late-stage robotics and AI companies.

Fee Structure: • Broker Fee: A one-time 5% fee applied upfront at the time of allocation. This fee is paid to the independent intermediary and covers sourcing and administrative setup. • Distribution Fee: A 1.5% fee applied only in the event of a successful IPO or acquisition, deducted from proceeds upon distribution.

No portion of the fees is retained by the DAO, its contributors, or affiliated parties.

Transaction Details: • Allocation: 203,500 USDC • Instrument: Common equity exposure via a single-layer SPV • Valuation: $1.1B post-money • Shares to Acquire: 5,000 • Price per Share: $38.75 • Additional Transaction Costs: USDC to USD swap, off-ramping, and wire fees are expected to remain under $2,000 total

Potential Liquidity Events

Foundation Robotics is positioned for multiple potential liquidity outcomes over the next two to five years:

IPO: Strong early traction and a unique defense focus make Foundation a candidate for a future public listing.

Acquisition: The company may attract interest from defense contractors or major tech firms seeking advanced humanoid capabilities.

Secondary Liquidity: Limited secondary opportunities may arise, with the SPV structure offering some flexibility for secondary trades.

Any decision to liquidate or partially exit the position will require DAO deliberation and a formal on-chain governance vote.

Key Risks & Considerations

Market Risks: Foundation operates in a highly competitive landscape alongside Tesla, Figure AI, Agility Robotics, Unitree, and Sanctuary AI. The humanoid robotics sector remains early-stage, with unproven reliability and cost-efficiency benchmarks. This may lead to extended timelines and increased capital needs.

Technical Risks: Cycloidal actuators demand high-precision manufacturing, with potential supply chain and quality control challenges. The company’s physics-action AI model lacks peer-reviewed validation. Retaining key technical personnel is essential to sustaining differentiation.

Defense-Specific Risks: Involvement in defense may limit partnerships with organizations that have non-weaponization policies and could pose reputational concerns for certain stakeholders. Compliance with ITAR and export controls may constrain global operations and increase regulatory risk.

Execution Risks: Scaling manufacturing introduces operational complexity. Rapid team expansion risks diluting culture and alignment. Real-world deployments may surface edge cases requiring further development and iteration.

Governance & Execution

If approved, the DAO’s Execution Engine will:

1. Finalize agreements and compliance with the intermediary.
2. Coordinate legal and treasury operations for the transaction.
3. Document the full transaction flow with a transparent paper trail for auditability.

All treasury activity and asset positions will be tracked and documented for DAO-wide visibility and auditability on the DAO portal: dao.xmaquina.io

Conclusion

Foundation Robotics demonstrates rapid execution in humanoid robotics, with differentiated technology and a clear commitment to defense applications. The company delivered a production-ready humanoid in roughly 13 months and is already working with U.S. defense customers.

At its core, this proposal asks a broader question: Should XMAQUINA allocate capital to companies serving the defense sector?

Foundation’s exclusive positioning as the only U.S. humanoid robotics company openly committed to defense presents both a strategic opportunity and an ethical consideration. This is not just a financial decision, it is a reflection of the DAO’s values and priorities moving forward.

If defense-aligned robotics fits within the DAO’s mission, Foundation offers early exposure to a high-impact, under-addressed segment. If not, the allocation should be declined.

This is a precedent-setting decision and the community must decide. – The Northstar Council