EP-50 dao5: Building a People-First Crypto Venture and DAO

In this episode, Tekin Salimi, founder of dao5, discusses his transition from traditional crypto venture capital to building dao5, a decentralized autonomous organization (DAO). He reflects on the challenges and opportunities in the crypto space, shares insights on DAOs, venture funding, and the intersection of blockchain technology with AI, and explores the evolving crypto ecosystem in the wake of 2024 market shifts.

Tekin Salimi outlines his journey from Polychain Capital to founding dao5 in 2022, where he focused on creating a unique investment fund model with a strong emphasis on adaptability. His approach in dao5 differs from traditional venture capital by prioritizing people and community formation within the decentralized framework. He delves into the market dynamics of altcoins, token distribution, and venture capital's shift toward decentralization. Tekin also highlights dao5's future governance model, where decisions will be gradually decentralized, but with a strong leadership core initially. The discussion touches on current challenges in meme coins, institutional adoption, and how the DAO model can address issues like liquidity, incentives, and governance in crypto. He concludes with thoughts on the long-term potential of decentralized AI and crypto integration.

Timeline:

00:00 Introduction and dao5 Overview

02:46 Key Differences Between dao5 and Traditional VC

04:29 dao5's Focus on People and Governance

06:33 Vertical Focus and Investment Strategy

08:54 Institutional Adoption vs. Crypto Native Innovation

10:45 Shifting Focus Toward Enterprise and Compliance

11:41 Performance of dao5's First Fund

13:47 Bittensor and dao5's Role as an Incubator

15:43 Blockchain and AI: Future Synergies

17:05 Shift in VC Return Expectations

18:50 The Meme Coin Dilemma for VCs

21:09 Transitioning to a DAO: Governance and Structure

23:53 Ensuring Balance Between Small and Large Stakeholders

26:30 Building Value-Aligned Community Participation

27:39 Handling Trust and Legal Risk with Pseudonymous Founders

28:55 The Future of Crypto VCs in a DAO-Driven World

30:40 Western vs. Eastern Crypto Ecosystems

32:18 Overcoming Gaps in Liquidity, Networks, and Regulation