Grindery Infinite Fundraising
Last updated by Thinh Porrmann 6 months ago
If Nexus succeeds it will become a critical part of infrastructure that will be used on every chain and directly or indirectly by every dApp and protocol. Nexus has to be autonomous, community owned and governed by its stakeholders. A sovereign public good.
On the other side construction of Nexus will require investment resulting in the need to separate financial value (and roi) from voting power supporting a structure that has no limit to scale without compromising agility. To achieve this we plan to rely on DAO and holographic voting protocols.
To achieve this initially relied on grants (thanks to Harmony!) without compromising equity. Binance has taken a good chunk. While we could have achieved it with grants it was much faster and provided much needed security for phase to develop faster and more to the next stage.
Our goal is to find smart ways to finance the project including standard grants, private investment and most of all mechanisms that provide early incentives for early contributors and adopters. Our strategy is based on three pillars:
First, we want to rely as much on grants while making sure that these grants benefit the community and not primarily founders or investors. In traditional startups grants usually have a positive effect on founders and investors since they avoid dilution. Our goal is to reserve as many tokens for the community as possible. We do this by limiting the amount of founder and investor shares to a specific percentage. This means that the more grants the project receives the more tokens will be reserved for the community. Founders nor investors will increase their stake.
Second, we will use a continuous fundraising approach for several reasons. One is that we are continuously extending our work with chains and protocols leading collaborations and grants that influence how much money we need. The other is that we are - unlike most web2 startups - interested in having a diverse base of investors and distribute power as early as possible widely as possible into the community. FInally it seems a more natural approach for an infinite project like ours while not bearing any obvious downsides.
Third, and finally we will establish a governance model that separates financial value from voting power. While this will be happening gradually and the main ideas are described in our plan for decentralization .
In the end we are looking for strategic partners in this project and not just money. Now, if we need just the money we will always take it.
Now, lets see what this mean for our different stakeholders
At this stage blockchains are our most important strategic partner because they have the shared long term interest as well as deep enough pockets to provide significant funding for projects. Blockchains are also the big winner from Nexus because it can con only increase usability and interoperability of their dApps but rather help dApps on its platform to become platforms themselves. The other way around Blockchains not only have understanding of their own ecosystem, access to the resources and talent and ability to promote joint activities.
Specifically we are looking to work with blockchains teas to create more decentralized connections, provide liquidity for gas stations and jointly support dAps and protocols.
dApps our our primary focus because we help them create better user experience and turn into platform. dApps have intrinsic knowledge of their users behavior and are the best to provide insight of what features and integrations their users want. None have abilities to fund as blockchains but the complexity and effort of working together is much lower. Fact, is integration can be done permission less starting with enhancing the ABIs.
We believe investors can add a lot of value when it comes to establishing new relationships with portafolio projects and people in their network. We usually set valuation progressively based on short term goals as well risk reduction through extension of runway based on the idea of infinite funding. All of our current and future investors are bound by vesting alongside with founder and early investors to reduce token volatility to make Grindery Nexus a truly useful utility for all dApps and end users.
Nexus offers web 2.0 companies and open source projects a unique opportunity: to get paid by Web 3.0 naive projects like DAOs. With DAOs growing rapidly in amount and types of use cases these DAOs require software, not only from Web 2.0. Allowing these project to natively connect to Web 3.0 and allowing them charge for their services is a major feat of the nexus Network. Collaboration can include Grindery funding joint developments as well as larger SaaS companies investing into the project. Grindery nexus also creates a unique opportunity for node and hosting operators to create wrappers for existing web2 APIs and charge for their usage.