Quickly understand the basic logic and operation of Dao Maker

What is it, how does it work, and how do you get involved?

Quickly understand the basic logic and operation of Dao Maker

This article is in the form of Q&A, for those who do not know DAO Maker can quickly understand such a project in a few minutes.

The basic logical framework of this article.

What is DAO Maker?

How does DAO Maker work?

How to participate in DAO Maker?

What kind of project is DAO Maker?

DAO Maker is an IDO platform or token distribution platform.

What do the DYCO, SHO, dTeam and Venture Bond that appear on the official website stand for?


DYCO is an idea first proposed by Vitalik, a crowdfunding method with a redemption mechanism, which aims to protect the interests of retail investors by setting a guaranteed price and redemption mechanism.

DAO maker allows project owners to withdraw approximately 20% of the funds raised at a time, and then unlock the funds slowly, once a quarter.

The project owner and the platform will agree on a price floor. If the price of the project owner’s token remains above the price floor within a specified period of time, the DAOmaker’s smart contract will automatically release the remaining fundraising money to the project owner proportionally; if not, the redemption mechanism will be activated automatically.

The project owner will need to buy back approximately four times the amount of unlocked tokens, e.g., if the unlocked portion is 20%, then 80% of the tokens will need to be redeemed. In this way, the interests of retail investors will be protected, and when the price is lower than the price floor, retail investors will have the incentive to buy and there will be room for arbitrage.

Now DAO Maker’s DYCO and SHO are combined and can be collectively referred to as SHO, with the mechanism as described above.


dTeam is the first generation of social mining product. It is equivalent to a SaaS platform (Software as a Service) given to project parties to use. Project parties use dTeam to go to the community, and rewards are set to the dTeam platform. According to this logic, dTeam can be considered as a task distribution system that motivates community participation.

Venture Bond

Venture Bond is a unique design, itself a DeFi financial product, putting money into the DAO Maker platform to inject funds into lending platforms, machine gun pools, etc., and then the proceeds from DeFi farming will be invested in relatively high-risk projects (users can independently choose which projects to put these proceeds into).

The design here is very clever, the principal to do farming, interest to go to the high risk, no loss of principal, return and risk control are more reasonable. This product is currently DAO Maker has not been launched.

Toll Bridge: active conversion of time and space

Retail investors need to actively claim their tokens on the webpage, Toll Bridge allows investors to unlock their tokens in advance. But there will be a certain percentage of burn (burn) to sacrifice the amount of subsequent tokens unlocked in exchange for a portion of the early unlocking. The logic is that the coin price now has a large profit margin, and time does not wait for people to make the time switch.


The first unlock is between 10-30% (assume 30% here), and there is still 70% for investors, assuming the coin price is ten times higher at this time compared to the IDO. At that time invested $1000, this time theoretically became $10,000, but only 30% can be unlocked, $3000, and then the remaining 70%, now need to be unlocked in advance, then directly destroy 50%, 20% (that is, 70% – 50% = 20%), that is to say, at this time my normal unlocked is 30%, unlocked in advance is 20%, and then these coins can be exchanged for $5000. 1K becomes 5K, get the immediate profit of $4000.

The reason why the project owner is willing to accept such a scheme is that it allows the total agent circulation of the project to deflate in the future. So, Toll Bridge works in the hope of achieving a win-win situation for both the project owner and the investor.

Operation methods

There are currently two forms of DAO Maker participation.

First, through KYC, and then IDO (playing new) with DAO Maker’s platform pass DAO.

Second, participate in the distribution of DAO Maker related tokens on Kucoin and gate, two trading platforms with which DAO Maker has strategic cooperation.

These are the basic rules and operation methods of DAO Maker.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/quickly-understand-the-basic-logic-and-operation-of-dao-maker/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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