MerchDAO blends blockchain NFT functionality and the concept of limited-edition merchandise to create a marketplace where users propose and choose designs – and where the ownership of unique items is digitally authenticated. The startup has just closed its seed investment round led by Exnetwork Capital and a group of angel investors.
The first DAO-run marketplace for limited-edition merchandise
NFTs, or non-fungible tokens, are taking the blockchain industry by storm: their sales have grown by a factor of 10 in 2020 to roughly $700,000 a day. While the best-known examples of NFTs are CryptoKitties and CryptoPunks, a non-fungible token can represent any unique object: from a piece of real estate to a work of art.
MerchDAO leverages NFTs’ ability to serve as digital ‘avatars’ of real-world objects to create a blockchain-enabled marketplace for unique and limited-edition goods run by a DAO, or decentralized autonomous organization. On MerchDAO, users can propose designs and ideas for merchandise: t-shirts, iPhone cases, mugs, hoodies, and so forth.
The community of MRCH token holders will vote on the designs to determine which ones should be made into real merchandise and in what quantity. Every item will be accompanied by an NFT to verify its ownership.
The company, led by its CEO Valerie Rutskaya, will act as the connecting link between the DAO and a pool of manufacturers, ensuring low production and shipping costs. According to the project’s White Paper, this business model guarantees a profit margin of 25-50%.
Seed round closed by Exnetwork Capital
On January 29, MerchDAO announced that it has successfully completed its seed investment round, raising $105,000 from Exnetwork Capital and a group of angel investors. CEO Valerie Rutskaya describes the agreement as a ‘long-term strategic partnership that will propel MerchDAO to the forefront of the NFT industry’.
Exnetwork Capital is an investment fund and blockchain incubator with a focus on decentralized autonomous organizations. It was founded in 2018 by the well-known serial entrepreneur and startup mentor Eric Su. The fund’s portfolio includes such prominent projects as Elrond, xDAI, Celsius, Zeroswap, Orion, and Ramp DeFi.
The MerchDAO team will use most of the seed round funds to finance the production and distribution of the first limited-edition items, as well as to launch a large-scale marketing campaign. The seed round will be followed by two private investment rounds.
Detailed information about MerchDAO is available on the project’s website, as well as in the official Telegram community chat.
Join our community:
On Twitter: https://twitter.com/MerchDao
On Telegram News Channel: https://t.me/merchdao_news
