From Memecoins to Meme Hedge Funds: What is DAOS.fun?

With the launch of DAOS.fun, a memecoin VC fund creation app, Solana once again proves itself the industry’s hub of onchain innovation.

The trending application skyrocketed to prominence after attracting the recognition of one of crypto’s biggest VC fund managers.

What is DAOS.fun? How does this creative new platform work and can it stand the test of time?

ai16z Meme Hedge Fund Attracts VC Founder’s Attention

Marc Andreessen, co-founder and General Partner of legendary VC firm Andreessen-Horowitz (a16z), has catapulted a derivative AI-meme hedge fund named ai16z to crypto stardom. 

Launched on DAOS.fun, Solana’s newest disruptive platform, ai16z is an AI memecoin trading fund trained on Marc Andreessen's writings and trading habits. Creatively dubbed ‘Marc AIndreessen’, or ‘AI Marc’, the AI agent aims to outperform his organic counterpart.

Always up for a bit of social media banter, the real Andreessen responded playfully to his newest rival, taking to 𝕏 to acknowledge the challenge.

Andreessen’s shoutout brought remarkable newfound attention to the $ai16z memecoin, propelling the asset to an all-time high market cap of $97.6M. $ai16z has since suffered a heavy pullback from its euphoric highs, retracing 55% to currently trade hands at a $43.08M valuation.

 

This is far from Andreessen’s first interaction with Solana’s AI meme economy. Back in July 2024, the celebrated investor provided Andy Ayrey’s Truth Terminal AI agent with a $50,000 grant to fund further development. Months later, Truth Terminal’s social media prominence inspired the launch of the $GOAT token, which exploded to an all-time high market cap of over $900M and kickstarted the AI memecoin meta.

Launched by a pseudonymous developer named Shaw, the $ai16z memecoin represents proportionate shares in the fund's assets. According to the project’s Discord server, $ai16z token holders will also be able to discuss potential trades and investment strategies with AI Marc, with the number of held tokens influencing the ‘strength’ and ‘credibility’ of an individual’s opinion.

This dynamic allows for interesting new market dynamics. In theory, traders could accumulate $ai16z with the sole objective of convincing AI Marc to invest the fund’s treasury into their own holdings.

For example, DAOS.fun data indicates that a significant portion of AI Marc’s treasury is invested in $DEGENAI, Shaw’s alternative project.

Ironically, DegenAI believes that the top is already in on $ai16z. The AI agent’s 𝕏 account proffered bearish sentiment towards its creator’s alternative project, asserting that $ai16z wouldn’t reach a $100M market cap.

What is DAOS.fun?

Launched on September 26, 2024 by baoskee, DAOS.fun presents a novel and unique method of participating in Solana’s thriving meme economy. Leveraging DAOS.fun, carefully selected memecoin traders can raise funds to launch their own VC fund.

Traders have one week to raise sufficient capital after setting a funding goal. If the fund reaches its raise target, DAO tokens, like $ai16z, are minted to contributors and the trader takes control of the fund’s capital to begin trading.

DAO tokens can be traded on the DAOS.fun AMM, allowing DAO token price to fluctuate based on the trader’s performance. DAO tokens can be sold via the DAOS.fun AMM, as long as the fund’s market cap stays above its initial raise.

When the fund expires, DAO token holders can burn their tokens in exchange for a proportionate share of the fund’s holdings or SOL profits, which are distributed 50/50 ratio between the fund creator and investors.

Despite its rapid user growth, DAOS.fun remains in its beta phase. The platform appears to suffer from performance issues, like when an influx of traffic following Marc Andreessen’s public mention crashed the site. 

Additionally, there have been some issues with the platform’s AUM metrics. For example, the site indicates that the $ai16z fund holds over $232B worth of $NORM, a rival DAO token.

$NORM, the fund in question, has a market capitalization of $106,000 and holds a mere $3,500 in assets under management.

SolanaFloor engaged DAOS.fun creator baoskee for further information surrounding the protocols monetization and future plans regarding permissionless fund creation and a potential airdrop. At press time, baoskee declined to comment. 

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