BIOHACK-3: The Biohackers Fund

Context:

Over the past month, DeSci has experienced a significant downturn - with some projects being down as much as 75%. There are now credible research, data and product projects with good teams and sizable treasuries, often sitting at low valuations. We believe this is a great opportunity to deliver on our mission of accelerating human enhancement by purchasing the tokens of projects aligned with our mission, building robust strategic alliances, helping to grow the space, and at the same time seizing the potential to significantly grow our treasury, over time.

Proposal:

We propose to allocate up to $250k worth of ETH from our treasury to purchase some of these tokens. This will form the basis of the planned Biohackers Fund.

The money will be spent over the next 3-12 months (a flexible window depending on opportunities and market conditions). The Stewards will be in charge of selecting which projects qualify, according to strict criteria - including credible teams, aligned and promising areas of research or product development, and value for money. No projects for which a Steward is a team member or paid advisor can qualify. A cap of $50k per project applies. Purchases may be made piecemeal or all at once, and won’t be announced until complete, in order to avoid price manipulation and frontrunning.

If the project doesn’t have a liquid token or if it’s more beneficial, an OCT (or similar) deal can be made. In either scenario, if mutually agreed between projects, $BIOHACK tokens may be used to fund a purchase instead of ETH, in a token swap arrangement (or similar). Holding each other’s tokens also creates alignment and incentives for projects to work together, growing the space as a whole. DeSci alliances such as BIO.xyz are already emerging and we believe this trend will continue - building our own alliance can be highly advantageous for growing the Biohackers ecosystem.

The Bigger Picture:

The overarching goal is maximum impact, returns may take a long time to realize, and that’s okay. Any pre-token deals or tokens received as part of a swap may be subject to lock-ups and intended for long-term holding for mutual benefit. If unlocked, purchased tokens may be sold at a later date given that returns are made, there is a significant market shift, or the partner project is no longer viable. This is a common fund strategy.

That said, BiohackerDAO should always strive to put its mission first, be a good actor in the space, and maintain a high reputation. Therefore, any buying and selling activities will be carried out with the intent to help and support partner projects and never to harm the chances of their success. BiohackerDAO may also engage in voting on partner project proposals with tokens it holds - once again, with the best interest of both itself and the partner project in mind.

Should this strategy be successful and impact and returns are generated, the DAO will consider allocating more capital to Biohackers Fund, and/or raising additional capital dedicated to this specifically (all subject to governance). It is also the DAO’s intent to decentralize decision-making over the fund down the line, however, at this scale, given the liquidity of some projects, and possibilities of front-running, we believe it would not be effective to start that way.

Risks involved: Since only 〜20% of treasury is being allocated to this right now, and the fund will only be allocating to projects with good alignment, strong teams, focused on building treasuries, and at a good price, the risks are minimized. That said, obviously the risk of partial or total financial loss for the DAO in any particular deal does exist.

Legal disclaimer: The DAO is legally structured as a non-profit entity. While we refer to this initiative as a 'fund,' all proceeds generated must be reinvested into the DAO to support its growth and advance its mission. No proceeds will be distributed to stakeholders or the team. This initiative is not an offer to sell, nor a solicitation of an offer to buy, any securities or financial instruments, and should not be construed as such.

Voting:

Vote YES if you think it’s a good time to establish The Biohackers Fund and vest the Stewards with limited powers of execution, over the next 3-12 months.

Vote NO if you do NOT think The Biohackers Fund should be established, under these conditions.