Stacks Investments
What's Stacks Finance? What does it do? Why is it interesting?
What's Stacks Investments?
Stacks finance is an investment community that manages a treasury created by the sale and re-sale of our exclusive Stacks NFTs. We cal it NFTfi (NFT + DeFi).
Our NFTs give the holder access to our dapp where they can see data about how the treasury is invest, the returns and they can manage their funds. Holders will also be able to access exclusive alpha and market insights posted by other members doing research and post research themselves.
The bulk of the treasury to invest is made of the revenue of sales from the NFTs and this principal is to be invested in multiple vehicles. For more information about this check this page.
The dapp, contracts and NFTs will live in the Ethereum network.
How can I participate?
Once the project is live (Q1 2023), anyone can buy a Stacks NFT through our daily auction. The protocol will allow for the mint of one NFT every 24 hours for the winner of the auction. Every day you'll have the opportunity to participate in the auction and bid for a Stacks NFT.
The daily mint of NFTs will continue for 10 years plus year 0 (2023), this creates a hard cap of 4,009 NFTs.
How will the DAO work?
Stacks Finance is an exclusive investment community (DAO) that allows holders of the Stacks NFT access to real low-risk yield. By hedging risk and diversifying our portfolio through an elected investment council, we allow anyone the possibility to make a set-and-forget investment or rise through the ranks to have more influence. The Stacks NFT grants access to the Stacks Finance DApp. All the data on profits and knowledge on treasury investments will be accessible. The utility is provided through a share % of all the profits and voting rights electing council or future DAO decision-making. Each NFT = 1 share of the total number of NFTs minted. All the profits are split equally depending on how many shares you hold. Providing the opportunity to make a long-term financial return from a one-time financial investment, with the option to invest as much or as little time as you want into the community of shared knowledge. The Council The Council will initially be the founding team members. However, when the community expands, The Council will be elected by the community to help with all future investment decisions made. After The Council is elected. The Stacks Team members will resume hands-off decision-making capabilities and will only be involved in a non-executive type role. The founding team aims to build and facilitate the project's growth but ultimately hand over the future direction to the community involved and the council elected. The Investment Fund Capital is raised through the revenue generated in the daily NFT auction and the royalties of all future NFT sales. All investment decisions will have to pass through a rigorous approval process. Treasury Management and the community are the heart of the Stacks Financial project. Low-risk, long-term investments are the priority to build a stable foundation to take more thought-out risks in the future. Current market conditions are viewed as a positive to the early stages of this project, as we can be extra frugal and focus our strategy on detailed research and long-term strategy. By 2025 we expect to be in a position to make frequent small bets and have investments in place to capitalise on the next 100x projects.
What does it do?
Stacks will be a hedge to degen plays in the market.
We want to create a fund that makes stables and safe investments that give a consistent return every month to holders of the NFT.
Returns from the treasury investment are distributed as follows:
40% reinvested into the treasury investments
10% paid to the team
50% distributed to NFT holders
The funds for the monthly profits become available on the 1st of every month as USDC. As an NFT holder you'll have access to your share of these funds. For an example check this page.
Why should I care?
Stacks aim to be a set and forget kind of investment tool. You'll be able to buy the "key" that let's you into the door and that's it. You can collect the profits from your investment at any time. They'll never diminish or be removed, they just keep on increasing.
Stacks is an innovative approach to investing in crypto. We believe in playing it safe and value recurring revenue over pumps and dumps. Our treasury will still be tied to the market (of course) but we aim to always provide a steady and positive monthly return to our investors.
Why invest?
A Stacks NFT is a lifetime pass to access recurring profits from our treasury. Besides just the regular appreciation of crypto we also provide returns from staking ETH, liquidity pools, investments in very early stage projects, stable farming and investments in delta-neutral vaults.
We are big believers in Ethereum and in the Ethereum ecosystem so most of our investments will reflect that.
We have a big long-term vision to create a project that's managed and built upon for the next 10 years and that after that will continue to produce results for our Stacks holders. Our aim is to be an S&P500 of crypto, a place where you can park your funds and expect a good and stable return every year.
Why is there a "chain of command"?
With Stacks we've decided to go with an internal architecture that we called a semi-DAO. This means that the DAO will still be able to vote on proposals, but these proposals must be approved by the team and a Counsel made of community members.
We know that DAOs are very popular and we probably could attract more investors if we had setup a DAO. The problem is that investing is hard and the majority not always knows best. We believe it's for the greater good to have a small and specialised team of advisors that points us to great investments, than to have the majority decide into popular projects. Having a ruling body over the DAO also prevents a possible 51% attack. Stacks holders will also be able to vote on any research that is presented on a Reddit style voting system where the top voted posts rise to the top and are taken into consideration for investment by the DAO.
You can read more about our thinking behind it in this page.
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