Will DAOs Break the Power of Venture Capitalists?

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 20 July 2021

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

In addition to the deep dive into distributed autonomous organizations, or DAOs, and their future in venture capital, today’s “The Brief” covers: Bitcoin futures trading approved for some Bank of America clients Stablecoin discussions entering the upper echelons of U.S. government The bubble continuing to inflate as markets roll over historical indicators SushiSwap, the decentralized exchange based on Uniswap, is proposing to sell a portion of its treasury to venture firms as part of a broader diversification plan. The community finds itself torn in half over the announcement, with some advocating for the benefits of seasoned expertise and others vehemently denying the need for institutional investors. SushiSwap’s “VC-versus-community” debate provides a case study on the growing world and strength of DAOs. VCs have previously held the essentially sole power over the fate of startups, but in the case of SushiSwap, they are now forced to be in open negotiation with the community. This power shift presents a window into the vitality of DAOs, stemming from their democratic and global nature, dynamism and anonymity. Will DAOs succeed as the internet native form of organization? -- Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW The Breakdown is sponsored by NYDIG https://nydig.com/nlw/ The Breakdown is written, produced by and features NLW, with editing by Rob Mitchell and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Only in Time” by Abloom. Image credit: BrianAJackson/iStock/Getty Images, modified by CoinDesk.

Transcript

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0:00.0	It's not just that power has shifted from the VC to the quote-unquote startup.
0:04.3	It's that the power itself is being distributed in general into this messy, chaotic process
0:09.3	where ideas are smashing up against ideas and influence and outcomes are based at least in large
0:14.0	part on who can convince the most in the community of the rightness of their position.
0:20.1	Welcome back to The Breakdown with me, NLW.
0:24.2	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:31.3	The breakdown is sponsored by Nidig and produced and distributed by CoinDesk.
0:37.7	What's going on, guys? It is Monday, July 19th, and today we are talking about DOWs and whether
0:44.0	they have the potential to transform power in venture capital fundraising.
0:50.1	First, however, let's do the brief, and before the brief, one quick caveat. I'm actually
0:54.8	recording this on Sunday evening because I'll be traveling tomorrow. So if some crazy
0:59.7	thing happened that I'm not covering, that's probably why. But with that said, back to the brief.
1:05.7	First of the brief, one more quick follow-up to the, are institutions just off-it discussion we've been having?
1:12.3	CoinDisc is reporting that according to two sources with knowledge of the matter, Bank of America
1:16.9	has approved the trading of Bitcoin futures for some clients. This could be a pretty significant
1:22.4	move. Spot trading is one thing, it's becoming more normalized, but derivatives are a whole different level.
1:29.1	The logic for Bank of America seems to have to do with the large margin requirements for futures,
1:34.0	as well as the maturity of the infrastructure from folks like CME. In fact, one of the sources
1:38.8	reports that Bank of America will be using CME futures. For their part, B of A has declined to comment, but we know
1:46.0	that they previously created a team to research crypto and related tech, so pretty interesting,
1:51.2	if true. Speaking of ongoing questions, the questions of stablecoins are headed to the upper
1:57.3	echelons of the U.S. government. This week, Janet Yellen convenes the president's
	...

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