DAOs, or Decentralized Autonomous Organizations, are non-human entities with the ability to own assets and make decisions. They are being utilized in several different industries, and Red Rock DAO believes that E-commerce businesses can also benefit from this technology. Through its scalable funding solutions, Red Rock DAO makes it easier for E-commerce entrepreneurs to build their businesses and follow their dreams of doing what they love and making money in the process. These solutions provide answers to the challenges facing e-commerce businesses in funding, especially with the increasing competition in the market, expanding returns, inflated shipping costs, and rising customer expectations.
The rise of online shopping
We’re seeing an increased engagement in online shopping since Covid-19 pandemic. According to International Data Corporation, e-commerce sales is poised to grow by 18.3% in 2018 to $2.355 trillion and account for 11.6% of total retail sales globally. The growth of e-commerce is just another sign that people are more willing to engage in online shopping and they prefer a frictionless online experience over a conventional store checkout counter. With Amazon taking over half of all e-commerce sales in 2017, it’s no surprise that e-commerce businesses are flocking to Amazon FBA (Fulfillment By Amazon) as their preferred choice for fulfillment services. Amazon FBA gives e-commerce sellers access to Amazon’s enormous customer base and enables them to focus on what they do best – growing their business! However, scaling your e-commerce business using Amazon FBA isn’t easy without capital. To scale up successfully, you need money not only for inventory but also other operational costs such as shipping expenses, logistics management etc.
What is DAO technology?
A Decentralized Autonomous Organization (DAO) is an organization that runs through rules encoded as computer programs called smart contracts. A DAO’s financial transaction record and program rules are maintained on a blockchain; a blockchain is a distributed database that maintains a continuously growing list of ordered records called blocks. By using blockchain technology, a single, tamper-resistant source of truth exists for any given information stored in it.
Why cashflow is king in e-commerce businesses?
The only thing that kept me up at night in the early days of doing business online was cashflow. When I took my first order in the spring, I had no idea if I’d have enough sales in the summer to make it through. Cashflow is a big challenge for any business owner. For many businesses traditional financing is able to provide a bridge between inventory acquisition and purchase order lead time. In E-commerce this differential often will not provide the runway necessary to support and scale product launches or capitalize on market trends. We knew there had to be a better solution. That’s why we’ve developed Red Rock DAO.
Web native business and the opportunities of crypto
Crypto is an evolution that is bound to change many things. Web native business happens to be one of them. Let’s talk about all these changes, crypto and what role Red Rock DAO plays in it. Ecommerce businesses are being disrupted as we speak. With Amazon controlling more than 50% of US ecommerce market, small online retailers have a hard time competing with Jeff Bezos juggernaut. So what can they do? Well, there are a few solutions on how Ecommerce businesses can scale their business without having to raise VC money or seek bank loans. We are talking about utilizing platforms like Red Rock DAO which will provide capital needed for scaling e-commerce businesses on autopilot via smart contracts while providing huge returns on investment over time. That is not all though… Blockchain technology allows us to move away from traditional equity investing model and create a better environment for investors where returns on investments will be shared by everyone who contributed with no exceptions!
Our proposed model can ensure sustainability and growth
A Decentralized Autonomous Organization (DAO) is an organization that runs autonomously and in accordance with a set of rules written in computer code. Red Rock DAO will act as a Decentralized Venture Capital Fund that invests in E-commerce businesses based on votes from investors, employees, and influencers. Red Rock DAO will be governed by smart contracts on Ethereum Blockchain network. This allows for transparency and eliminates corruption, which are key issues facing current venture capital firms. Red Rock DAO can provide scalable funding solutions to e-commerce businesses at low costs.
How it works (technical explanation)
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. Learn More.
What investors get from investing in us (the token holders)?
Membership in Red Rock DAO is currently limited to approved investors. The total number of members will be capped at a maximum of 99 members.Members have the opportunity to contribute Ether to Red Rock DAO by purchasing units representing ownership in Red Rock DAO (“ROCS Units”). The members reserve the right to create a ROCS Token to represent ROCS Units via Member votes.Units are sold in blocks. Each block of ROCS Units (or 100,000 units) is currently being sold for ETH and provides a member with 0.9% of the voting rights in Red ROCK DAO, along with 0.9% pro-rata rights to any proceeds from investments. The per-unit number to buy units into Red Rock DAO will increase incrementally after every investment Red Rock DAO makes.Each member is permitted to purchase up to eight blocks of ROCS Units (or 7.2% in total).The sale will be denominated in Ether. Ether to US dollar calculations will be provided via a real-time oracle feed from Chainlink. Red Rock DAO Units have not been approved or disapproved by the U.S. Securities and Exchange Commission, any state securities commission in the United States, or any other global regulatory authority.
This is Not Investment Advice:
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