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Fractional DAO Club (FDC) seeks to provide FDC’s investors with outsize returns using algorithm-based trading.
The initial 9 investors form the Core Team Members of FDC. FDC will operate on a consensus model for decision-making. Proposals submitted require 60% or higher votes for adoption. 8 members will be responsible for voting, only in the event of a tie-vote, Benny will vote the tie-breaking 9th vote.
While algorithm-based trading can be applied to many forms of trading, the initial venture by FDC will focus on
Fractional NFTs (F-NFTs). The time taken to produce a confident trade signal in crypto-currencies is relatively long, and the latest estimates also put the signal accuracy at around 62%. In contrast with F-NFTs, the market produces more frequent signals and allows for more trading opportunities.
While returns on NFTs may be lucrative, they can be hampered by their limited availability and high cost – hence F-NFTs come along to solve this issue. F-NFTs lower the entry barriers by reducing costs and increasing circulation. These features make F-NFTs an ideal candidate for algorithms-based trading.
Currently Targeted F-NFTs: a) Azuki, b) FLUF World, c) Bored Ape Yacht Club, & d) Mutant Ape Yacht Club
The initial investments by the Core Team will be locked up for the initial 6 months so that there is sufficient time to accumulate maximum profits. At the end of the 6th month, the initial investments will be returned to the Core Team. FDC should have enough remaining profits by then to continue trading.
Subsequently, 30% of profits made will be paid out once every 3 months, and the remaining 70% remain within FDC to grow the trading fund pool.
Should the trading funds held by FDC grow “too large” for the market cap of the Targeted F-NFTs, FDC will increase the frequency of payout* to the Core Team. The percentage of profits distributed remains at 30% - changes will only be made to the frequency of the payouts (eg. Once every 2 months, or once a month).
In the future, more core team members have clearly defined value-adding contributions to FDC on top of money.
FDC will also set a much higher financial requirement in order to qualify. The amount required depends on the value in FDC’s wallet at the time of application. If all requirements are met, the investor will then have to submit an application to FDC for the existing core team to vote on before becoming part of the core team.