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cryptocurrency January 13, 2022

Key Takeaways

  • DeFi Alliance has changed its organizational structure to become a decentralized autonomous organization.
  • The DAO has raised $50 million from 300 contributors who will support Web3 startups.
  • AllianceDAO will be publishing a whitepaper in the coming months with additional details.

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DeFi Alliance has formed a decentralized autonomous organization through collaborating with notable crypto founders.

DeFi Alliance Is Now AllianceDAO

Crypto accelerator DeFi Alliance has launched the AllianceDAO.

Crypto startup accelerator DeFi Alliance (originally dubbed Chicago DeFi Alliance) has changed its organizational structure to become a decentralized autonomous organization. The DAO has raised $50 million from more than 300 contributors who will support Web3 startups.

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The team described the newly-formed the AllianceDAO in a blog post on Thursday. Describing it as a “digital startup nation,” the DeFi Alliance team said the DAO had been created through a collaborative community of founders from several crypto and non-crypto projects. 

A DAO is an organization that employs encoded, automated rules using smart contracts hosted on a blockchain. DAOs are an emerging corporate structure that allows a community or group to organize themselves in a decentralized fashion and allow decision-making via a token-based voting process.

In a social media post from its rebranded Twitter hand, DeFi Alliance said:

“DeFi Alliance and hundreds of other top builders are coming together to form Alliance, the world’s first digital startup nation, to accelerate the best Web3 startups.”

Originally founded by Imran Khan and Qiao Wang, DeFi Alliance has accelerated 90 startups since its launch in early 2020, including some of the most widely used DeFi projects on Ethereum—0x, Alpha Finance, dYdX, Kyber, Olympus DAO, Paraswap, Ribbon Finance, Sushiswap, Synthetix, and Zerion to name a few. 

In its initial fundraising round, AllianceDAO announced raising $50 million from 300 contributors, including Twitch co-founder Kevin Lin, Gemini founders Cameron and Tyler Winklevoss, OpenSea co-founder & CEO Devin Finzer, Terra founder Do Kwon, Aave founder Stani Kulechov, Circle founder & CEO Jeremy Allaire, and others. 

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The AllianceDAO contributors will join as mentors of future Web3 startups in an incentivized DAO ecosystem governed by all community members. Web3 is considered the future iteration of the decentralized Internet and operates on public blockchains like Ethereum.

AllianceDAO hass said it will publish a whitepaper in the coming months with additional details on its organizational structure and governance.

Disclosure: At the time of writing, the author of this piece owned ETH and other cryptocurrencies.

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