DPAD DAO is tackling a major challenge in the Web3 industry - the high failure rate of projects and the rampant scams that deceive investors and drain liquidity from the nascent Web3 ecosystem. By taking inspiration from Nouns DAO, which uses a community treasury to foster on-chain identity and community building, similarly DPAD protocol supports the creation of new ideas and communities backed by treasury-backed DAOs.
While the DeFi revolution brought about by Uniswap's introduction of liquidity pools and AMM DEXes has secured many community investments from scams, the problem still persists. Based on our research of 40,000 projects, 98% of the token projects launched through IDOs reach $0 in liquidity pools within 18 months.
DPAD's solution is to divide funds raised from the community into a liquidity pool on a DEX and a DAO Treasury. All token holders should have the right to vote on DAO proposals, and the use of funds in the Treasury should be governed by the DAO through proposals. By implementing this model, DPAD aims to ensure the long-term growth and prosperity of the projects.
Last modified 5mo ago