BendDAO, an NFT lending platform, has filed a proposal on the group discussion board to create an funding fund with a post-money valuation of $80 million.
In accordance with the proposal, the fund, if accepted, will perform as a sub-treasury for the NFT lender. The sub-treasury will make investments not less than 50% of its funds in non-performing property. This transfer is a part of efforts to diversify the NFT lender’s DAO treasury.
For BendDAO, this sub-treasury is critical given the latest struggles the challenge has confronted amid a normal downturn within the NFT market. Shrinking liquidity within the NFT area has seen a big quantity of compelled withdrawals from the NFT lender, resulting in a pointy improve in borrowing charges. This case lately noticed the platform amass a major quantity of unhealthy debt as debtors defaulted on their mortgage positions. As beforehand reported by The Block, BendDAO was compelled to push via numerous protocol upgrades to forestall a number of Bored Apes and different costly NFTs from being offered at a reduction.
To seed the sub-treasury, the BendDAO workforce is in search of approval from the group to promote 1 billion of its tokens. This quantities to 10% of the full BendDAO (BEND) token provide. The NFT lender plans to make use of ether (ETH) because the financing forex with a minimal funding of 100 ETH per share to realize the $80 million post-money valuation for the fund.
The proposal states that the NFT lender is seeking to entice investments from enterprise capital corporations, blue-chip NFT initiatives, and group members. Of the 1 billion tokens, 60% will probably be allotted to enterprise capital traders. The remaining allocation will probably be cut up equally between traders from the DAO and blue-chip NFT initiatives. Every VC, NFT, or particular person investor will solely be allowed to personal a most of two% of the tokens being offered by the fund.
As a part of the proposal, BendDAO is contemplating two choices for distributing the tokens to traders. The primary possibility has no vesting requirement however the DAO will deposit an equal quantity of the ether generated from the token sale into its ETH liquidity pool to earn staking rewards. The second possibility has a six-month vesting schedule, adopted by linear unlocks over a two-and-a-half-year interval.
BendDAO plans to make use of not less than 50% of the fund to spend money on non-performing property. The DAO will create a four-of-seven (4/7) multi-signature pockets for the sub-treasury. This multi-sig association will embody three group members, two VC representatives, one signatory from a blue-chip challenge, and one BendDAO core workforce member.