For Backers

Overview

MetaDAO protects backers in two ways:

• Mechanistic protection against treasury misappropriation
• Legal protection against revenue misappropriation

Mechanistic protection against treasury misappropriation

On Solana in 2021 there were four big ICOs:

• Parrot: raised $85M, the team walked away with $72M of it
• UXD: raised $57M, insiders walked away with $46M of it
• Mango: raised $70M, the founders are suing each other for stealing from the project
• Aurory: raised $108M, the token is down 99.5% and it's unclear where the money has gone

On MetaDAO, all of the funds go to a market-governed treasury.

If someone tries to take treasury funds against the project's interests, anyone can raise a proposal to return capital to tokenholders.

Legal protection against revenue misappropriation

Famously, the $30m Uniswap has made from its frontend is retained solely by Uniswap Labs and will likely never end up in the hands of tokenholders.

Less famously, the Unibot team built Trojan, which made $206M in fees, and decided to keep the revenue for themselves rather than integrating the $UNIBOT token.

Because of the legal entity created at launch, tokenholders could sue teams that misappropriate the project’s revenues or compel service providers (domain name registrars, social media companies, etc.) to transfer control of IP to a new team.