DAO Maker has established itself as a premier fundraising launchpad within the cryptocurrency ecosystem since its inception. Built for resilience, it continuously adapts to meet market demands and the ever-changing landscape of digital assets. A key innovation is its Strong Holder Offering (SHO) model, which provides unique opportunities for investors. This guide explains how it works and how you can participate.
What Is DAO Maker?
DAO Maker is a launchpad platform that connects investors with early-stage crypto projects seeking funding. It allows its community to acquire token allocations in projects before they are listed on public exchanges. This is particularly appealing for investors, as it offers tokens at the listing price. High-potential projects often experience significant price surges shortly after their public debut.
While market conditions fluctuate, quality projects tend to stabilize at price levels higher than their initial listing price. This potential for early entry at a favorable cost is the core value proposition for investors using the platform.
Key Features of the DAO Maker Platform
Understanding the platform's mechanics is crucial before participating.
Mandatory Staking
To be eligible for fundraising events, you must stake DAO tokens on the platform. Staking involves locking your tokens for a chosen period. Two important points to note:
- Longer staking periods result in higher rewards.
- Unstaking early may cause you to forfeit future token distributions from projects you've already won.
Always consider any pending token rewards before deciding to unstake and exit the platform.
Tier System
Access to allocations is tier-based. Your tier is determined by the amount of DAO tokens you hold and stake. Higher tiers grant larger allocations.
- Tier 0: 250 – 1,999 DAO
- Tier 1: 2,000 – 3,999 DAO
- Tier 2: 4,000 – 9,999 DAO
- Tier 3: 10,000 – 24,999 DAO
- Tier 4: 25,000 – 49,999 DAO
- Tier 5: 50,000 – 99,999 DAO
- Tier 6: 100,000 – 200,000 DAO
Understanding DAO Power
Your DAO Power is a score that determines your allocation size. It is primarily based on your staked DAO tokens, but holding above your tier's minimum grants a bonus, increasing your effective power.
- Tier 0: No bonus
- Tier 1: 5% bonus
- Tier 2: 10% bonus
- Tier 3: 15% bonus
- Tier 4: 20% bonus
- Tier 5: 25% bonus
- Tier 6: 30% bonus
For example, a user staking 15,460 DAO (Tier 3) would have a DAO Power of:
15,460 1.15 = 17,779*
Fee Structure
The platform charges a 20% fee on all allocations won in standard SHOs. For a $200 allocation, $40 is taken as a fee, and you receive $160 worth of tokens at the purchase price. Public SHOs carry a higher commission of 30%. These fees are used to buy back DAO tokens, helping to fund staking rewards and support the token's value.
Guaranteed Allocations
A major advantage is that standard SHOs guarantee an allocation to every participant who has staked tokens, regardless of tier. To participate, you must pre-fund your allocation during registration. You can deposit any amount between $1 and the communicated maximum.
If a fundraising round is oversubscribed, the platform recalculates each user's maximum allocation using a formula based on their share of the total DAO Power. If you deposited more than your new maximum, the smart contract automatically refunds the difference.
DAO Hub
The DAO Hub is an engagement platform where users can earn points by completing tasks, such as interacting with promotional tweets from projects hosted on the launchpad.
Public SHOs
DAO Maker also hosts Public SHOs, which do not require holding or staking DAO tokens. The prerequisites are:
- A verified DAO Maker account
- Successful completion of KYC (Know Your Customer) verification
- Holding a minimum of $500 in various cryptocurrencies
A wallet score is assigned during registration. A higher score increases your chances of winning an allocation. This score can be boosted by following the project on social media or using a referral link. Unlike standard SHOs, Public SHOs operate on a first-come, first-served basis, and allocations are not guaranteed. 👉 Explore more strategies for public sales
How to Participate in a Strong Holder Offering (SHO)
Once your account is set up, KYC verified, and tokens are staked, you can start participating.
Conducting Due Diligence
Before investing in any project, it's vital to conduct thorough research. Ask these key questions:
- Is the business interesting? Utilize the deep research pages DAO Maker provides to understand the project's scope.
- Is a listing date confirmed? Fundraising completion doesn't guarantee an immediate listing. Be prepared for a waiting period that could last from days to months.
- Do the tokenomics align with my strategy? Analyze the token distribution, vesting schedules, and utility.
The Participation Process
The registration and allocation process follows these steps:
- On the project page, click "Participate" and follow the instructions to pre-fund your allocation.
- On the results day, you will discover your recalculated maximum allocation amount.
- If you pre-funded more than this new maximum, the excess amount is automatically refunded.
- You typically receive a percentage of your tokens on the listing day, with the remainder distributed according to the project's vesting schedule.
Frequently Asked Questions
What is the main purpose of DAO Maker?
DAO Maker is a launchpad designed to facilitate fundraising for new crypto projects. It provides a platform for investors to gain early access to token sales before these projects are listed on major exchanges, often at a favorable entry price.
Do I need to hold DAO tokens to participate in every sale?
No. While standard Strong Holder Offerings (SHOs) require staking DAO tokens, the platform also hosts Public SHOs that have no token holding requirement. Instead, eligibility for public sales is based on a wallet score and completing KYC.
How are the fees structured on allocations?
The platform charges a 20% fee on allocations won in standard SHOs. This means if you win a $200 allocation, you receive $160 worth of tokens. For Public SHOs, the fee is higher, at 30% of the allocation value.
What happens if a fundraising round is oversubscribed?
If a round raises more funds than targeted, the system recalculates each participant's maximum allocation based on their proportional DAO Power. Any excess funds you deposited beyond this new cap are automatically refunded to you.
What is DAO Power and how is it calculated?
DAO Power is a score that determines your share of allocations. It is based primarily on the number of DAO tokens you have staked. Holding more than the minimum for your tier grants a bonus percentage, effectively increasing your power and potential allocation size.
Is there a risk of losing tokens when staking?
The staking mechanism itself is secure, but your tokens are locked for a chosen period. Unstaking early may result in missing out on future token distributions from projects you have already gained allocations in.
Conclusion
DAO Maker has solidified its position as a leading crypto fundraising platform. While entry was challenging during bull markets, recent conditions have made it more accessible for new participants. It offers a structured gateway to pre-listing investment opportunities.
However, it represents a significant long-term investment commitment. It is essential to fully understand all platform mechanics, from staking and tiers to fees and vesting schedules, before embarking on your launchpad investment journey. 👉 Get advanced methods for evaluating new projects