BUSINESS MODEL

VCDAO’s business model is driven by a DAO Treasury-based syndicate investment framework. Participants determine investment directions via DAO voting, and profits are returned to the community through Buyback & Burn policies and community rewards. The model concentrates on four key sectors:

2.1 DeFi (Decentralized Finance)

A portion of the DAO Treasury is invested in decentralized finance infrastructure and protocols.

• Opportunity: The global Total Value Locked (TVL) in DeFi has shown continuous growth, creating opportunities for fee-based revenue. As of Q2 2025, DeFi TVL reached about $123.6 billioncoinlaw.io (up 41% year-on-year), reflecting the ongoing expansion of the sector. Major DeFi platforms like Ethereum dominate (~63% of total TVL, ~$78.1B)coinlaw.io, with Layer-2 networks (e.g. Arbitrum ~$10.4B, Optimism ~$5.6B) also rising rapidlycoinlaw.io. The broad growth of DeFi continues to present new investment and revenue opportunities (e.g. protocol fees, yield mechanisms).

• Differentiation: Rather than acting as a passive investor, VCDAO positions every token holder as a co-decision-maker through the DAO structure. This collective due diligence and decision process increases transparency and leverages collective intelligence to validate investments. The model mitigates unilateral decision risk that is common in traditional VC by requiring on-chain approval for deployments.

Furthermore, leading DeFi protocols remain central to the ecosystem’s value. Liquid staking protocols, for example, now represent roughly 27% of DeFi TVL, with Lido Finance alone managing about $34.8 billion in TVLcoinlaw.io and spearheading the liquid staking segment. Other top platforms such as Aave and Uniswap continue to maintain significant market share in lending and DEX markets respectively (Uniswap’s UNI token, for instance, reached a market cap of $12.3B by mid-2025coinlaw.io). By participating via a DAO, VCDAO can invest in and engage with these protocols in a transparent, community-driven manner.

2.2 Energy (Renewable Energy & Carbon Credit)

VCDAO forms syndicate pools to invest in renewable energy projects and carbon credit tokenization initiatives.

• Opportunity: There is a surge in demand for ESG investments and a robust growth trend in carbon credit markets. International bodies and major governments are actively promoting renewable energy projects and carbon credit market development to meet carbon reduction targets. Global clean energy investment is projected to reach about $2 trillion in 2024, roughly double the investment in fossil fuels, and total global energy investment is expected to exceed $3 trillion for the first timereuters.com. Notably, solar power investment alone is forecast to be around $500 billion in 2024, making it the largest single category of power generation investmentreuters.com.

  In the carbon credit arena, various analyses predict the global carbon credit market will grow to a hundreds-of-billions-of-dollars scale by 2030, though estimates vary by source. For instance, in one climate investment scenario, annual investments related to carbon credits would need to reach nearly $300 billion by the early 2030s to align with net-zero goalsiea.org, and continue climbing thereafter. Both the International Energy Agency (IEA) and BloombergNEF underscore the rapid growth trajectory and increasing capital flows into carbon markets as the world strives to meet climate targets.

• Differentiation: Unlike traditional energy investments which are often limited to a few large institutions, VCDAO utilizes a global community-driven participation model via a DAO. This approach creates a democratized green investment ecosystem led by the community rather than a handful of institutional players. By tokenizing and investing through a DAO, even individual investors worldwide can participate in funding renewable projects or carbon credit schemes, contributing to ESG goals while sharing in the returns. This collective model enhances inclusivity and transparency in a sector that typically requires large capital and has been dominated by specialized entities.

VCDAO can also leverage emerging Web3 models in energy – for example, participating in or partnering with blockchain-based carbon credit platforms (such as Toucan Protocol, KlimaDAO, etc.), which have demonstrated the feasibility of trading tokenized carbon credits on exchanges and Web3 platforms. These initiatives prove the potential of blockchain in facilitating environmental investments and can offer VCDAO long-term, structured opportunities aligned with global sustainability efforts.

2.3 Meme Economy

The VCDAO Meme Coin is not merely a speculative asset; it serves as a core mechanism to activate the DAO community and provide participation incentives.

• Opportunity: As seen in the cases of Dogecoin and Shiba Inu, meme coins have demonstrated massive popular influence, proving to be powerful tools for community-driven investment and viral growth. As of late 2024, the overall market capitalization of meme tokens had surged past $50 billioncryptobriefing.com, reflecting renewed speculative interest. At one point, memecoins accounted for roughly 3% of the total cryptocurrency market cap (and about 11% of the altcoin market if Bitcoin and Ethereum are excluded)cryptonews.com.au. This indicates the outsized role meme coins can play in capturing retail attention and liquidity during bull cycles. Moreover, trading liquidity for meme tokens is disproportionately high – the annual trading volume-to-market cap turnover for memecoins was about 77% as of March 2024, compared to just 1.8% for Bitcoinbdc.consulting – underscoring the intense activity and speculation they generate.

• Differentiation: VCDAO’s Meme Coin is designed with an issuance of 100 billion tokens, emphasizing accessibility and utility over strict scarcity. This contrasts with many meme tokens that rely on extreme scarcity; instead, a larger supply allows more widespread ownership and use. The Meme Coin is integrated into community events, participation rewards, and retail-friendly incentive designs, all aimed at strengthening growth and cohesion of the DAO. For example, VCDAO can use Meme Coin rewards to encourage governance participation or referral campaigns, ensuring that community members are directly incentivized to contribute and evangelize. This approach transforms the Meme Coin into a tool for building a vibrant investment community, working complementarily with the DAO governance (where serious decisions are made via the governance token, while the Meme Coin fuels engagement and fun).

Importantly, despite high volatility, top meme coins have shown surprising longevity. Dogecoin and Shiba Inu, for instance, remained among the top crypto assets by market cap from 2021 through 2025, illustrating that meme tokens have carved out a persistent niche in the market. The Meme Coin component of VCDAO taps into this phenomenon, channeling the meme economy’s viral potential into the platform’s growth strategy, but does so in a structured way that complements the overall investment objectives of the DAO.

2.4 Bio & Healthcare

VCDAO pursues early-stage investments targeting drug development and biotech/healthcare startups.

• Opportunity: The global bio & healthcare market exhibits high growth potential and potentially strong returns from innovative technologies. The market size is continuously expanding – for example, the worldwide bio/health industry was about $13.54 trillion in 2023 and is projected to reach approximately $19.43 trillion by 2030, corresponding to a 5.3% compound annual growth rate (CAGR)khidi.or.kr. This robust growth is driven by factors such as new drug development, gene therapy breakthroughs, and the digitization of health data. There is also high demand for early-stage investment opportunities that were traditionally monopolized by established VC firms, indicating unmet appetite among investors for exposure to biotech innovation.

  Startup funding in this sector has been significant. Global venture capital investment into biotech and healthcare startups totaled roughly $65 billion in 2023patentpc.com, accounting for well over 15% of all VC funding during that period. This substantial share underscores investor recognition of the sector’s potential, as well as the capital-intensive nature of biotech ventures. Notably, even in recent years of market volatility, healthcare has remained a major focus for VC – for instance, 2023–2024 saw around $65B of VC funding flow into biotech startups, comprising more than 15% of global VC allocations. Investors are attracted by the high-risk, high-reward profile of biotech innovations (e.g. breakthrough therapies can yield outsized returns if successful).

• Differentiation: By design, VCDAO enables the DAO community to access high-risk, high-reward opportunities in biotech that were once the domain of traditional VCs only. Through the syndicate pool structure, even individual participants can collectively fund early-stage bio/health projects and partake in decision-making. This opens the door for retail investors to have a say (and stake) in ventures like drug discovery or medical technology startups, opportunities that historically required insider networks and large capital commitments. The DAO model also provides a collective diligence process – community members can contribute diverse expertise (some may have medical or scientific backgrounds) to evaluate prospects, potentially improving decision quality compared to a single VC’s perspective.

Of course, the sector’s risks are notable: clinical trial failure rates average over 80%, regulatory approvals can tie up capital for long periods, and outcomes are uncertain. VCDAO addresses this by diversifying across multiple biotech investments through the syndicate pool and by transparently communicating risk to the community. Ultimately, VCDAO’s approach offers individual investors a unique chance to engage in the frontier of innovation in bio & healthcare, within a framework that pools knowledge, shares risk, and democratically governs the investment process.

2.5 Combined Syndicate Model

VCDAO operates not as a single aggregated fund, but via sector-specific Syndicate Pools for each of the four key sectors. Rather than one monolithic treasury, the DAO Treasury is subdivided so participants can directly engage in the sector they are interested in, allowing for customized portfolio construction. Only investments approved by DAO vote are executed, ensuring community consent in every allocation. Profits realized from each pool are then channeled back into the DAO Treasury and distributed to the community according to the token economic model (e.g. via buybacks, dividends, or rewards as per governance decisions).

This multi-pool structure means investors can express preferences and risk tolerance per sector – for example, an investor bullish on DeFi but lukewarm on Bio can concentrate their participation in the DeFi pool. It enhances risk management by not commingling all investments and allows performance tracking per sector. The DAO governance structure ties it all together by providing transparent, collective decision-making on where treasury funds go, thereby executing distributed yet coordinated investment strategies. Overall, the combined model of separate pools with centralized DAO oversight enables VCDAO to reflect investor preferences, diversify risk appropriately, and carry out accountable group decisions in managing the venture portfolio.