DeFi Alliance Turns Full DAO After Raising $50 Million: Report

The Defi alliance turns full DAO as it is looking to expand the goal of growing Web3, and it even raised $50 million to rebrand in Alliance DAO so let’s read more in today’s cryptocurrency news.

Web3 accelerator DeFi Alliance announced it will rebrand to Alliance DAO and the move came at a time when decentralized autonomous organizations showed the ability to raise bigger sums of money in a short amount of time. Alliance DAO said that over 300 contributors joined and raised $50 million and the DAO said the reason for the change is that the goal of growing Web3 to one billion users will take a huge effort, much bigger than what the DeFi Alliance could do.

A DAO is an online group that uses smart contracts to manage member participation, voting, funding, and more. CoinstitutionDAO took DAOs mainstream and became popular when it raised $45 million in a bid to purchase an original copy of the US constitution. The DAOs can be a form of various purposes and the members of the Alliance DAO are joining their forces in an effort to incubate the crypto startups. Dane Lund noted:

“We will be building the infrastructure for an ecosystem that encourages the best Web3 founders to receive accelerator services and then remain as mentors to later founders. We also aim to attract other DAO Contributors (builders, subject matter experts, and service providers) to join to provide support for Web3 founders. By creating a DAO, we are able to distribute the work of supporting founders even further and permit contributors to have a more direct stake in the outcome of their efforts, which incentivizes high-quality contribution.”

The news of the DAO forming was met with praise from project leaders and crypto venture capitalists. Even Coinshares Chief Strategy officer Melterm Demirors noted:

“Our team @CoinSharesCo is proud to join @alliancedao.”

Calling itself a digital startup nation in a blog post and announcing the DAO launch, Alliance said DAOs sit right on the intersection of the trends that create a perfect storm for them to rise including being transnational and digital. Initially launched in April 2020 by Imran Khan and Qiao Wang, the organization included in its accelerator program Kyber Network, dyDx, 0x, IDEX, Olympus, sushiswap, and Synthetix.

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