AIP-396: LFG VENTURES presents: Made by Apes - Powered by ApeCoin

Sorry, few more questions, if you don’t mind, as I’m not familiar with the specifics of the MBA (Made by Apes) program.

Does MBA require there to be an actual product created prior to issuance of the MBA? If not, do you plan on allowing individuals, groups, or organizations to pitch potential products/ideas to you for funding which will then lead to an MBA license?

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Hey Livefast,

Thanks for asking your questions, always appreciated.

From my own experience, I don’t think MBA has a hard and fast rule of requiring an existing product/service to apply, but it does look like most current licensees have something already produced or in the pipeline.

Our focus, at least for the first few months, will be to identify MBA Licensees through our outbound efforts with an aim of progressively moving towards a process for inbound applications.

Trust this helps - :mechanical_arm:

SSP

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I had the same perceived understanding that this was the case, but wasn’t sure as I haven’t gone through it myself and figured you all may know better.

Yup. Completely see that and love it. Reading through your application, it left me with the impression that you may be a sort of VC or Angel Investor (I think I’m using these terms properly in this context) as your application appears to position yourself as potentially being one. I guess that may be a future endeavor for this program.

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Reading this a bit better, this is a bold AIP! I’m operating on the assumption that you’re going to move 100% of the funds you receive into DeFi, and then use the DeFi profits that you receive to fund investments in projects that you identify as being worthy of said investment. If my assumption is incorrect, let me know.

One big question is how do you intend to hedge asset volatility? Obviously it can work for you, but it could dramatically reduce your overall funding quickly in a crash scenario as well. For example, if Gordon tweets Apes are done, Penguins are the new new and $APE goes down 50%, how would you see that impacting funds based on your current strategy?

I do think this would be a great way to push funding to quality projects while avoiding the plutocracy that is the current DAO governance structure.

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Thanks, Matt

Your assumptions are correct - we’ve received some other similar feedback and will update some verbiage to make this more clear.

Regarding asset violatility, it could reduce overall funding; however, as part of the strategy to mitigate this, nearly half or ~3.6MM will be USDC in Aave earning a modest 5% and outside of protocol hack there is little to no downside risk.

& yes, we hope this provides a streamlined way to get funding to quality projects.

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Love the proposal (although I liked the ape16z name better but I understand why it wasn’t picked)

What would be the kind of support you’ll be willing to provide these companies later down the line where they’re sustainable and need CapEx for expansion.

Will you also be willing to look into platforms which allow permission less access to credit via revenue based financing ? In form of short term lines of credit which would be payed back in full along with any incurred interest as a %age of their revenue

This not only reduces risk for the investor, increases cash flow within the business, but also ensures there’s no form of equity dilution which might be a nice prospect for already established native (web 3) companies or non native companies who need to be on-boarded.

I think there’s a huge market for democratizing access to credit in form of short term lines of credit, especially in traditional markets for short to mid size companies, thereby circumventing ESG considerations as a whole, which people aren’t a big fan of.

Also, It would be cool if it had a social media presence like the other giants, be it How To’s, Sharing Insights or case studies

The examples being A16z’ → https://www.youtube.com/@a16z/featured (case study types)

or yCombinator’s → https://www.youtube.com/@ycombinator or https://www.youtube.com/@ycvault for a more How To perspective tailored for an authentic web 3 experience in the startup ecosystem

Finally, is there anything I can do in order to add to this initiative, I’d love to do that.

Hope all goes well and we’ll be able to see a self sustaining value addition machine in all its glory

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Thanks for the feedback, @CEOofWeb3.0

Great questions and ideas.

If all goes well, we can foresee a larger fund in the future and that could certainly help companies looking for larger rounds. Additionally, we will make introductions whenever possible.

& yes, we can explor permissionless platrforms that provide credit - any in particular that you’d recommend we explore?

I too agree that the market for democratizing access to credit… I’m a big fan of what we’ve seen in the defi and NFTfi space as it relates to individuals and tokenized assets, and agree an opportunity exists for businesses.

We are discussing a social presence, more on that soon - thank you for the ideas and examples.

& greatly appreciate your support and offer to help :saluting_face:

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One of the most interesting platforms for permission less access to credit would be Goldfinch (https://goldfinch.finance)

I know a couple of peeps who were looking to build a similar platform in the Revenue based financing space, was part of a small team for this as well.

Also, would you be down to provide other type of support other than monetary, like for example some other venture studios do. (Helping and mentoring founders with GTM strategy etc)

An example for which would be the Ton foundation accelerator (Accelerate your growth)

There are loads of considerations with something like this, I can rest easy knowing the team’s got the competence to get this up and running.

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Thanks for sharing - this is great.

Permissionless revenue based financing is really interesting, looking forward to seeing those come to market.

& thank you very much for your offer of support and assistance! We’ll certainly keep in mind and connect soon.

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It does not require that you have an actual product created prior to the issuance of the MBA.

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Hi @CaptainZwingli,

The community feedback period for your proposal would be ending in less than 24 hours.

  • If you’re content with the feedback received, your next steps are to finalize your proposal using the AIP Draft Template.
  • Upon receipt of the final Draft, we will review and provide instructions on the next steps.
  • Are you ready to proceed to the next phase or do you wish to extend community discussion for another 7 days?

We look forward to hearing from you.

@Facilitators

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This topic was automatically closed after 7 days. New replies are no longer allowed.

Hi @CaptainZwingli,

Thank you for your ideas [and the ApeCoin DAO community for the insightful discussions].

A moderator will reach out to the author to finalize the AIP Draft using the appropriate template.

  • Once the AIP Draft is confirmed by the author and meets all DAO-approved guidelines, it will receive an AIP ID number and move forward for Draft Analysis Review.
  • @CaptainZwingli please see your messages for the next steps.

Follow this Topic as further updates will be posted here in the comments. In accordance with DAO-approved guidelines, if the author does not respond within 30 days, the proposal will be automatically transferred to the Withdrawn category, and the author can re-submit the idea.

-@Facilitators

Hi ApeCoin DAO Community,

@CaptainZwingli has completed editing their AIP Idea to be their AIP Draft.

This proposal has been assigned the AIP ID Number 396.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

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Hi ApeCoin DAO Community,

Edits have been made to this Topic, by the author’s request.

You can click the Pencil icon at the top of the post to see these edits.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

This marks a positive move forward! I’ll take some time to absorb the details but wanted to express my appreciation for the progress. Well done

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Hi ApeCoin DAO Community,

Our team has reviewed and discussed @CaptainZwingli’s AIP Draft and sent a list of initial questions.

The author has responded to our questions and they are in our review once again.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

Hi ApeCoin DAO Community,

We have no further questions for @CaptainZwingli. This AIP is now under Administrative Review.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

Hi @CaptainZwingli,

I’ve carefully reviewed AIP-396, while I appreciate the effort and enthusiasm behind the initiative, I don’t think it’s needed. I’ll explain:

  1. My primary concern lies in the nature of the funding mechanism proposed. The proposed grant structure raises concerns about the effectiveness of utilizing the treasury funds. Unlike a loan, which could potentially be repaid, a grant introduces a one-way flow of funds.

  2. Instead of allocating a substantial grant, exploring partnerships with established web3 vc might offer a more sustainable approach. By leveraging these VC relationships, the DAO could manage funds more effectively through fees or revenue-sharing structures, potentially achieving a better return on investment for the community. Fund-to-fund deals / revenue back / 2-3% management fee like VC…

  3. The ApeCoin community has a well-established process for funding projects through the AIP. It allows the community to vote on proposed projects, give authors to promote their products, and ensuring a decentralized decision-making process. I am not convinced that creating a separate fund outside this process is necessary, especially given the on-chain AIP process that coming lead by GWG.

Hope you can understand. Thank you for your dedication to advancing the Made by Apes ecosystem.

-Mr. Hype :fire:

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