BitDAO received $230 million in a funding round led by PayPal co-founder Peter Thiel, as well as Thiel’s Founders Fund, Pantera Capital, and Dragonfly Capital, all of whom were early backers of the project, which “aims to promote and propel the mass adoption of open finance and decentralized tokenized economy.”
BitDAO will utilize its war chest to support grants, hire developers to help blockchain teams, and pump liquidity into decentralized finance (DeFi) projects, which provide bank-like services without the banks, according to a news release.
DAOs, or decentralized autonomous organizations, are decentralized autonomous organizations that leverage smart contracts on a blockchain platform to allow their members to commit tokens toward certain governance decisions. Though they’ve mostly been utilized for DeFi protocol governance in recent years, they’re growing more popular as venture capital vehicles. DAOs pool members’ assets, boosting the likelihood that their desired projects will succeed—and that they will profit from their investment.
In April, NeptuneDAO raised $20 million intending to provide liquidity to decentralized finance lending protocols. In May, a WallStreetsBets creator switched gears from boosting meme stocks to working on a decentralized autonomous organization (DAO) that would allow token holders to rebalance stock portfolios. And Sharlyn Wu, a former Huobi executive, assembled key figures in DeFi this month, like Warwick and Compound creator Robert Leshner, to lead yield farmers to the top AladdinDAO projects.
BitDAO is poised to take the ship with $230 million in its coffers.
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