⏩Fundraising Process

The Fundraising Process can be divided into the Fundraising Phase itself and a Coordination Phase, which follows the successful completion of a campaign and governs the period of validity of the campaign.

Fundraising Phase

The Fundraising Phase consists of few steps:

1. Setup Account + Identity

2. Select Fundraising + Coordination Protocol

3. DaoX Council Approval

4. Launch

During Fundraising, creators will promote their campaign and collect supporters with their funding. If a campaign reaches the desired minimum cap, it is considered successful.

Funds provided by contributors are locked until the end of the campaign. Depending on the campaign’s outcome, funds will either be returned to the contributors (unsuccessful) or stored in a campaign escrow, to be processed by the coordination protocol.

Coordination Phase

Reaching the coordination phase means a campaign was successful, which is a remarkable testimony for the creator, as this reflects trust in the capabilities and idea of creator and product by the council and, more important, by the community.

Depending on the protocol ( Grant, Prepaid, Share ) the raised funds can be released in various ways, giving supporters different types of guarantees and influence opportunities along the process of creating the project.

Campaigns can be created with or without Governance, but at least one of the four baseline protocols, Grant, Prepaid, or Share, will define the way funds are released to the creator.

Without Campaign Governance

1. Grants paid immediately to the creator.

2. Prepaid campaigns release payments on an automagic time schedule defined by the creator on invocation of the protocol.

3. Shares will be immediately released, but may imply further regulatory requirements.

With Campaign Governance

All participants of a campaign will automatically become part of the coordination DAO to propose and approve (withdrawal) votings:

Upon campaign creation, the creator can propose either milestones or deliverables which in turn release funds, when the coordination DAO, consisting of contributors and representatives of the DaoX council as supervisors, approves.

Any participant of the coordination DAO can create proposals to interact with the campaign creators in a transparent and coordinated fashion.

Campaigns featuring Governance, provide coordinated exit from a campaign during coordination phase, when deliverables or milestone quality do not meet the expectations of the DAO members (“rage quit”), resulting in resolution of the protocol and return of the remaining funds to the contributors, based on their fractional contribution.

This results in measurable quality, protection and guarantees for contributors as well as higher success rates of funded campaigns.