Synthetix DAO has added some new, possibly surprising sounds to its management.
Synthetic Assets Protocol today announced a $ 12 million fund-raising led by venture capital firms Paradigm, Coinbase Ventures and IOSG. The funds purchased SNX tokens directly from the DAO Treasury, and will “provide liquidity and participate in the Synthetix governance process and help bring institutional class participation in the ecosystem,” the announcement reads.
“We are excited to support synthetixDAO as it builds a pioneering synthetic asset platform,” said investment partner Paradigm Arjun Balaji. “Synthetix has one of the best communities in coding and we are happy to be a part of it.”
Investing is noted for being among the first instances of money being invested directly with and through a project governed by the DAO. How VCs interact with protocols governed by the DAO has been a hot topic of late, with some arguing that VCs should not receive preferential treatment, while others argue that VCs are welcome, like any entity, to participate in an open ecosystem.
A recent tweet from Hayden Adams, founder of Uniswap, emphasized working with VCs – as long as they’re the right people.
I’ve seen a lot of negativity and hype so I think it’s worth sharing my personal experience.
– Hayden Adams (@haydenzadams) February 12, 2021
Jordan Mumtaz, a major contributor to the Synthetix DAO (and former director of Synthetix’s former decentralization operations), agrees that it’s all about the money the protocol works with.
“Too much venture capital does not add much value.” He told Cointelegrap that the delta between high-quality venture capital and the rest is very large.
Each of the three enterprising investors who joined in the $ 12 million increase is bringing additional value to the table that the individual investor may not be able to muster, he said.
“Paradigm Protocol assists in recruiting talent through HR and the intranet. They have also been actively helping with thinking through v3 mapping. Providing insights into the approach around our redesign.” Coinbase projects have helped connect across many functions, internally and externally. “.
Meanwhile, IOSG is helping to lead the Synthetix rush into China by helping to recruit a regional pioneer in China, as well as through “personalized promotions and creating educational content in Chinese”.
The increase comes during a particularly fruitful period for Synthetix. The team recently announced the launch of Tesla synthetic stocks, and SNX was among the tokens that the filings show could be the next to be listed as a Grayscale Mutual Fund.
It’s a momentum that you really hope the newest members of the community can help implement.
“Applying the smartest minds to the toughest problems is part of the community’s success and we look forward to working closely with these new stakeholders.”