BitDAO received $230 million in a funding round led by PayPal co-founder Peter Thiel, Thiel-founded Founders Fund, Pantera Capital, and Dragonfly Capital as well as all early backers of the project, which “aims to promote and drive mass adoption of decentralized finance and token economy.” .”
Other funders include Brevan Howard Asset Management co-founder Alan Howard and Synthetix’s Kain Warwick. Singapore-based crypto exchange ByBit also contributes regular revenue from trading its futures contracts, which can inject hundreds of millions into the fund.
According to the press release, BitDAO will use its war chests to hire developers to assist the blockchain team, and pump liquidity into decentralized finance (DeFi) projects, which offer bankless banking-like services.
DAOs, or decentralized autonomous organizations, use smart contracts on a blockchain platform, which essentially allow their members to pledge tokens against certain governance decisions. Although in recent years they have been used for DeFi protocol governance, they are becoming an increasingly popular vehicle for venture capital. DAOs can pool members’ assets, increasing the likelihood that their target project will succeed and they will earn money on their investment.
With $230 million in hull, BitDAO is ready to set sail.