How DAOs Are Impacting Real-World Business Solutions

DAO's are deploying new funding strategies in E-Commerce.

How DAOs Are Impacting Real-World Business SolutionsRed Rock DAO is changing the game in E-commerce funding.

May 8, 2022
Posted by: Red Rock DAO
Category: ICO, Media

Can you really fund businesses through a DAO?

What’s a DAO?

Decentralized Autonomous Organizations (or DAOs) are a new type of business model that is revolutionizing the traditional governance structure. It’s a way for anyone to contribute their time and effort to a project, receive funds through the sale of a product or service, and share in the overall profits of the organization on an equal basis with everyone else. Instead of having one person at the top who’s responsible for making all of the decisions, DAOs use distributed decision-making models with many different people plugged into the process at once. There are no bosses—everyone is treated as an equal partner and gets paid based on how much effort they put into their job.

DAOs create new opportunities for people to take part in businesses without having to go through traditional channels like applying for jobs or investing money upfront. They make it easier than ever before for individuals to work together on projects they’re passionate about without having to worry about any kind of hierarchy getting in the way.

In addition, because these organizations don’t have any central authority or hierarchy, they tend to be more resistant to external attacks like hacking attempts because there’s no single point of failure. This helps ensure that everyone involved feels safe when it comes time for them to invest their money into whatever project.

A DAO is a decentralized autonomous organization that operates through smart contracts on the blockchain. The DAO is a set of contracts stored on the blockchain that no one controls. Because these contracts are automatically executed by the blockchain software, this means that there is no need for middlemen or third parties to oversee these transactions. DAOs can be used to fund projects using cryptocurrencies and also make payments with cryptocurrencies. These smart contracts allow people to participate in projects by voting on them when others join the project or by investing in it by purchasing tokens from the project’s token sale.

Discover more about DAOs on https://ethereum.org/en/dao/

Want to learn more about DAO's?

Discover more about current DAO ecosystems.

On Chain DAO Governance:
We utilize Aragon protocols and smart contracts for voting and execution of DAO decisions.

Absolute Transparency in DAO Voting:
Managed voting represented by utility tokens held by community members.

Smart Contracts:
Designed to manage to operations around decision making for the DAO are the foundational documents of governance.

Secure Tokens on Ethereum:
The Ethereum network based ERC20 tokens provide a safe and secure network for transacting.

Organize Your Community:
A committed community of passionate evangelists is vital to the growth and effectiveness of any DAO. There are many platforms that provide resources to founders to help them develop connections, organize their community, and delegate the work of the DAO.

Solutions in Crypto Financing for E-commerce:

One example of how DAOs work is by allowing users to purchase tokens for their own projects, which can then be used for a voting stake in Red Rock DAO. Our Community unlocks the potential of a secure decentralized governance structure represented by ROCS units (ERC20 tokens) to fund, scale, and share in the profitability of E-Commerce Brands. We connect operators, industry experts, and investors through efficient and scalable funding solutions. Red Rock DAO utilizes the Aragon platform built on the Ethereum network for voting, governance, and community resolutions. The ROCS token offers investors a secure solution to govern through established protocols and smart contracts. Members have the opportunity to contribute Ether to Red Rock DAO by purchasing units representing ownership in Red Rock DAO (“ROCS Units”).

Decentralized Autonomous Organizations offer real-world applications in venture funding E-commerce and Fulfillment By Amazon (FBA) businesses and fast-growing startups. DAOs are not new in 2022, but they are gaining traction as cryptocurrency becomes more mainstream.

Every E-Commerce product-based business owner deals with the struggles of irregular cash flow patterns. They’re caught between forecasting the capital needed for inventory and sustainable business expansion and traditional lending institutions with solutions that weren’t designed for a web-based business. Operators are left with a major delta between the need for favorable terms in financing and options from these lending services or p&l-based lending. E-commerce business owners are web1 and web2 native and open to non-traditional financing options including cryptocurrency. There is an opportunity in the market to both extend short-term financing options and aggregate a portfolio of E-Commerce and FBA businesses through decentralized currency lending and the purchasing power of a DAO.

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Solutions in Legal DAO Governance:

Red Rock DAO is organized as a Wyoming DAO limited liability company. The Wyoming DAO LLC is a legal entity that provides a way for people to organize their business in a way that protects them from liability but also allows for more flexibility than a traditional form of incorporation.

The most important benefit of using a Wyoming DAO LLC is that it provides protection against liability. If your company has no employees, partners, or shareholders, there’s no need to worry about lawsuits or other liabilities that can come with running a business. You can focus on your core competencies without having to worry about the minutiae of running a business.

Another benefit of using this structure is that it offers maximum flexibility in how you choose to operate your company. You can choose how much money you want to take in and how much money you want to spend on overhead costs like salaries, marketing, and office space. This makes it easier for new businesses to get started quickly and grow organically as well as for established businesses who may not have time or resources left over after paying their taxes, paying employees and other typical business expenses.

The legal framework for a Wyoming DAO LLC is already in place. It is called the Wyoming Business Corporation Act, and it allows you to operate your company as an LLC. Other benefits of operating our business as a Wyoming DAO include:

Wyoming’s Advantage:
Incorporating in Wyoming allows you to take advantage of the state’s favorable tax laws. You can also choose from several different types of business entities that offer different levels of liability protection.
LLC Requirements:
Wyoming is one of the few states that does not require any physical presence in order to form a limited liability company (LLC). This means you can skip over other states with more restrictive requirements and incorporate your business directly in Wyoming.

Token Certificates:
Once you have incorporated, you can issue token certificates in exchange for investments from investors who want some degree of control over how their money is spent. These investors may also want some say on how their shares are valued — which means they’ll need to be involved in the decision-making process at some point down the line.
Organized and Executed On Chain:
Decentralized Autonomous Organizations (DAOs) are organizations governed by computer code and executed on a blockchain. A DAO will have its own token, which is used to solicit proposals and vote on them. Proposals can be anything from funding a new project to hiring a new team member or even changing the direction of the organization.

We believe in transparency with our investors and want to ensure that we all share the same vision for the future of this company. We realize there have been many rug pull risks for investors in DAO’s that’s why we are choosing to DOX our founders, board, and advisers.

Solutions for Sustainable and Scalable Business:

Red Rock DAO is a decentralized autonomous organization (DAO) that has developed scalable funding solutions for E-Commerce operators. We pair business operators, with industry experts, and investors. The main goal of Red Rock DAO is to empower entrepreneurs by providing them with the necessary tools and support to grow their businesses. We are using blockchain technology to provide innovative financing solutions in the e-commerce space. We are building a platform where anyone with an idea can get funded by other people who believe in their vision. In this way, we hope to help entrepreneurs achieve their dreams. Red Rock DAO will enable anyone who has an idea for an online business to get funded by others who believe in their vision. Anyone can become an investor on our platform by purchasing tokens that represent shares of a company’s profits over time.

Red Rock DAO has developed scalable funding solutions for E-Commerce operators. We pair business operators, with industry experts, and investors. Our team is comprised of seasoned professionals in the venture capital, web3 technology, and FBA & E-commerce industries. Our expertise enables us to provide a unique perspective on how to successfully scale up an e-commerce business.

We are passionate about helping entrepreneurs and supporting operators who develop sustainable businesses by providing them access to the capital and expertise they need to succeed. The world is changing rapidly, and we want to help our community’s projects adapt quickly to these changes so they can enjoy success in this new era of business.

E-commerce product-based businesses struggle to maintain cash flow. Our scalable funding solutions provide access for operators to crypto-assets to fund and scale their businesses amid cashed strapped seasons. The central problem of any E-Commerce and FBA business, large or small, is cash flow. When you have a great idea and are ready to execute your plan, you need money to pay for inventory, advertising, and other expenses. We’ve established new lending options to brands in the form of crypto financing or for an ownership stake in their company. This solution improves cash flow and provides additional benefits of partnership and support from our board of experts and community of founders and investors. We bring far more to the brands we partner with than capital. We bring experience and community support. Let us help you develop a more sustainable business.

Our solutions will enable E-commerce operators to utilize our platform and receive funding from the community in exchange for a portion of their future revenue or for an ownership stake in their company. This will allow operators to scale their business without having to rely on banks or other centralized institutions that can limit your growth potential. Our platform utilizes smart contracts and blockchain technology to ensure trust between parties, reduce transaction costs, eliminate fraud and provide full transparency throughout the entire process.

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Crypto Financing:
We provide capital through our decentralized lending platform which allows companies in need of funds to borrow crypto assets such as Ethereum or Bitcoin at competitive rates without having to sell their assets as collateral or pay interest on loans. This gives them access to the capital they wouldn’t otherwise have access to while allowing them to keep their assets secure and untouched by third parties like banks or financial institutions who might charge high-interest rates or require collateral against the loan amount borrowed by the business operator from us.
Venture Capital:
Traditional terms of investment for a negotiated stake in a company. Founders and operators can apply for venture funding for their businesses through our platform by submitting a short application explaining the desired funding they are seeking with details on the funding round. Red Rock DAO’s service provider will perform diligence and evaluate the business for investment. Once approved by our board and voted to fund by the DAO community, Red Rock DAO takes an ownership stake in the funded company. (terms negotiated by the Red Rock DAO service provider)

Venture Debt:
We connect operators with investors who share their vision for the future of the web. Operators can apply for funding for their businesses through our platform by submitting a short application with P&L statements to provide diligence for the venture debt. Once approved by our board and voted to fund by the DAO community, they will receive a loan with no fees or interest rates — instead, they give up part ownership in the company (terms negotiated by the Red Rock DAO service provider) as collateral until their loan is paid back in full.

The Benefits of Venture Based Lending:
- Access to capital without giving up control over your company
- No fees or interest rates — instead, we take equity in your company as collateral until our loan is paid back in full
- Partnership opportunities with other ventures that want to work with us

Once a funding proposal is submitted for a project, the proposal will be submitted to the Red Rock DAO members to decide whether to nominate a project for funding. If a funding proposal is nominated, Red Rock DAO members will then vote on whether the project will receive financing from Red Rock DAO. If approved by a majority quorum of Red Rock DAO Members, the project will then receive financing in the form of a convertible note. All project financing will be allocated to Red Rock DAO projects in the form of the cryptocurrency Ether.

Our expert team and advisory board bring together decades of experience to both evaluate appropriate investments for the DAO and come alongside operators to implement scaling solutions that maximize profitability. Aggregated businesses are overseen by members of the Red Rock DAO board and delegated specific permissions for process-based decision-making. The DAO governs all investment decisions and the sale of assets.

This is Not Investment Advice:

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Discover more at RedRockDAO.com and connect with us on Discord to learn more about how we are revolutionizing the world through web3 scalable funding solutions for E-Commerce and FBA Brands.