Investment Branch
A Pathway to Growth in the CIFI Ecosystem
Last updated
A Pathway to Growth in the CIFI Ecosystem
Last updated
Circularity Finance has introduced a revolutionary approach to asset management and decentralized governance with the CIFI Real World Asset (RWA) DAO. Aiming to replicate the success of industry giants like BlackRock but with a decentralized model, the RWA DAO represents a unique opportunity for long-term investment and participation in a collective governance structure that stands at the forefront of the merging of real-world assets with blockchain technology.
Vision and Structure
The RWA DAO is envisioned as a 25-year membership organization focused on decentralized asset management, with the goal of becoming a leading Asset Manager entity similar to BlackRock but operated through democratic and decentralized processes. The DAO will control 5 million CIFI tokens, which at current valuations, equals $5 million USD, signifying a robust financial foundation for its investment strategies.
Exclusive Membership and Impact
The collection is capped at 500 NFTs, with each being sold for 10,000 CIFI. This not only limits the membership to an exclusive number of participants but also removes a substantial amount of CIFI from circulation. The removal of these tokens is a strategic deflationary mechanism designed to add value to the CIFI ecosystem.
Governor Seats and Passive Income
Ownership of an RWA DAO NFT entails the potential to benefit from the acquisition of 50 of the 250 Governor Seats, turning each holder into a crucial decision-maker in the DAO's investment choices. This governance power comes with the benefit of a 10% annual percentage yield (APY) per seat, based on the current seat cost of 100,000 CIFI. It will equate to a passive income of 500,000 CIFI annually distributed among the governors once it reaches maturity, reinforcing their pivotal role in the ecosystem's evolution.
The RWA DAO Collection offers an attractive annual percentage rate (APR) of 24% in REFI tokens, amounting to 2,400 REFI tokens each year for 25 years. This sustained disbursement means each membership owner can anticipate a total of 60,000 REFI over the lifespan of the investment, a significant yield that doesn't factor in the collective investment gains of the DAO.
Sustainability and Longevity
The RWA DAO can be identified as a "Sustainability Agent" within the CIFI ecosystem, which aligns with the growing global emphasis on sustainable investment practices. The RWA DAO is subject to a 40% tax, effectively channeling a portion of rewards back into the Governor Rewards Contract and the other half into the Proof of Reserve Vault by exchanging CIFI for CGO. This taxation strategy serves as a reinvestment mechanism, maintaining and enhancing the ecosystem's health over the 25-year period.
The CIFI Real World Asset DAO is not just an investment vehicle but a bold initiative in the DeFi space, redefining what collective yet decentralized asset management can look like. It combines the innovative use of NFTs as membership and governance tokens with a solid strategy for asset and liquidity management. Members not only gain financial benefits but also become integral players in steering the ecosystem's future, mirroring the collaborative ethos that blockchain technology advocates.
In the dynamic world of Circularity Finance, the Real World Asset (RWA) DAO, formerly known as CIFI1, stands as a pioneering force designed to catalyze the growth and evolution of the ecosystem. The RWA DAO operates on the principle of leveraging collective resources to provide alternative financing solutions to forward-thinking companies, especially those making strides in sustainability and innovation. Below, we delve into the workings, opportunities, and transformative potential of the RWA NFT Collection within the Circularity Finance ecosystem.
The RWA DAO is endowed with a strategic reserve of 5 million CIFI tokens, a fund dedicated to investing in companies at the cutting edge of their industries. This reserve is not merely capital; it represents a commitment to fostering growth, innovation, and sustainability within the broader economic landscape. The RWA DAO targets companies that are either nascent in their development or have earned the REFI NFT— a Sustainability Designation from the Green Cross UK, signaling their commitment to sustainable practices.
Investment Strategies and Opportunities
Direct Investment:
The RWA DAO can allocate up to 100,000 CIFI tokens to a company in exchange for a 10% stake in the company's token supply. This arrangement is designed to create a Yield Bearing Asset within the company, enhancing its ability to generate cash flow. Companies holding a REFI NFT benefit from a reduced stake requirement of 7%, acknowledging their sustainability efforts.
DAPP Integration Financing:
Recognizing the importance of technology in driving customer engagement and business growth, the RWA DAO offers financing for companies seeking to integrate DAPPs from the CIFI platform. In return for covering the integration fees, the DAO receives 5% of the company's token supply. This percentage is reduced to 3% for REFI-approved DAOs, facilitating easier access to vital technological infrastructure. Should a company pursue this engagement, this also be agreeing to incurring the maintenance costs & platform fees for use of the platform without re-selling rights.
Addressing the Challenge of Company Valuation in Web3
A significant barrier for companies entering the Web3 space is achieving a tangible evaluation without the necessary technological framework to attract and serve customers. Traditional venture capital routes may not always be accessible or suitable for all startups, particularly those pioneering new models or focusing on sustainability.
The RWA DAO's innovative financing solutions offer a lifeline to these companies, providing them with the means to secure the technology essential for operational success. By enabling access to DAPPs and supporting the tokenization of real-world assets, the RWA DAO not only helps companies to kickstart their growth but also contributes to their valuation prospects in the Web3 ecosystem.
The Transformative Impact of Decentralized Financing
The RWA NFT Collection and the broader activities of the RWA DAO exemplify the transformative potential of decentralized financing. Through strategic investments and support for technology integration, the RWA DAO empowers companies to navigate the challenges of the Web3 landscape, fostering an environment where innovation, sustainability, and economic growth thrive hand in hand.
In doing so, Circularity Finance and the RWA DAO are not just offering financial resources; they are building bridges between the traditional and digital economies, ensuring that the future of business is inclusive, sustainable, and ripe with opportunity for all. By providing alternative financing solutions, promoting sustainable business practices, and facilitating technological adoption, the RWA DAO is at the forefront of creating a more accessible, equitable, and innovative economic model for the future.
To further cement its role as a catalyst for innovation and sustainable economic growth, the RWA DAO will utilize the CIFI RWA Marketplace, an innovative platform developed in collaboration with WeSet and the Latin American Tokenization Association. This marketplace is set to revolutionize the way we think about ownership and investment in real-world assets (RWAs) by introducing the concept of fractionalized ownership of tokenized assets. This move not only democratizes access to investment opportunities but also aligns perfectly with the ethos of decentralization and inclusivity.
The CIFI RWA Marketplace offers a groundbreaking platform where tokenized real-world assets can be owned fractionally. This approach significantly lowers the barriers to entry for investors, allowing for broader participation in investment opportunities that were previously accessible only to a select few. By tokenizing and fractionalizing ownership of assets, the RWA DAO empowers companies and individuals alike to invest in and benefit from the growth of tangible assets, fostering a more equitable distribution of wealth.
The RWA DAO's investment in companies seeking Yield Bearing Assets, like the CIFI Governor Seats, exemplifies a strategic approach to generating sustainable cash flow. Alternatively, companies looking for non-dilutive financing options can engage with CIFI's white-label solutions, including Tokenization Platforms, decentralized exchanges, or Web3 marketplaces. These platforms enable companies to tap into the burgeoning digital and physical goods market using NFTs as a novel form of receipt and proof of ownership.
As the DAO accrues tokens through its investments, it adopts a prudent strategy of selling a portion of these tokens (up to a maximum of 1% per year over several years) to recoup its initial investment. The value gained from these sales is then strategically reinvested into purchasing assets on the CIFI RWA Marketplace. This methodical approach ensures that the RWA DAO's efforts in investing in companies transition seamlessly into acquiring long-term assets that offer passive income.
The ultimate goal of leveraging the CIFI RWA Marketplace is to secure RWA that generate passive income, thereby ensuring a steady stream of dividends for all members of the RWA DAO. This strategy not only underscores the DAO's role as the Investment Branch of the CIFI ecosystem but also showcases its commitment to converting short-term efforts into long-term, sustainable assets. Through fractionalized ownership of tokenized RWAs, the RWA DAO sets a precedent for innovative investment models that promise inclusivity, sustainability, and profitability.
