mtnCapital Raises $5.7M to Bootstrap Futarchy Investment DAO

mtnCapital, the world’s first futarchy-powered decentralized investment fund, has successfully raised $5.7M via a token sale hosted by MetaDAO.

Attempting to resolve some of the issues plaguing investment DAOs, mtnCapital aims to become one of Solana’s leading capital allocators.

How is mtnCapital different from legacy governance models, and what does the DAO intend to do with its first $5.7M?

1931 Contributors Join mtnCapital

Concluding a week-long sale, 1,931 wallets contributed funds to the mtnCapital TGE, raising over $5.7M and launching crypto’s first futarchy-governed decentralized investment fund. 

Unlike legacy investment DAOs, which typically allocate capital based on weighted votes, mtnCapital adopts the futarchy governance structure. In this model, proposals are decided on through prediction markets, encouraging participants to vote based on their financial incentives.

With over $5M in its treasury, mtnCapital now eagerly awaits the first RFPs (Request for Proposal) from its contributors, which will kickstart the DAO’s fund allocation. 

At press time, mtnCapital’s first proposal seeks to find a home for the fund’s idle capital, which is currently held in $USDC and liable to lose value due to inflation.

$MTN Value Hovers Around Fund NAV

Within its first day of trading, $MTN value has stayed tightly bound to the fund’s NAV (Net Asset Value). Theoretically, the value of $MTN should reflect the performance of mtnCapital’s portfolio, giving holders control over the DAO’s treasury.

Despite no current $MTN mint/burn redemption mechanic to support this value, mtnDAO co-founder Edgar Pavlovsky argues that the relationship between $MTN’s market cap and the fund’s NAV allows for unique arbitrage possibilities.

However, this strategy also relies on mtnCapital enabling token liquidation in exchange for a proportionate share of the NAV. Given the DAO’s governance structure, this would first need to be approved via a futarchy-powered governance proposal.

$MTN Co-Founder’s Second Token Launch This Week

The $MTN token launch marks a busy week for mtnDAO co-founder Edgar Pavlovsky. Founder and former CEO of Solana DeFi stalwart MarginFi, Pavlovsky also launched a privacy-focused AI gaming token earlier this week via pump.fun.

The $DARK launch comes in addition to Pavlosky’s ongoing work on Paladin, a patch deployed by validators to reduce MEV impact on the network.

When asked if mtnCapital would be investing in $DARK, Pavlovsky indicated that the fund can theoretically invest in any token. All investment decisions would, however, be subject to a governance proposal. Social media commentators have argued against mtnCapital’s potential support of $DARK, claiming a conflict of interest.

Regardless, mtnCapital represents a unique approach to decentralized investment fund operation. Solana has always been home to builders and experimenters, and mtnCapital could very well inspire a procession of similar DAOs leveraging futarchy mechanics to govern capital allocation.

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