Squads raises $5 million to boost DAOs on Solana

Squads raises $5 million to boost DAOs on Solana

In short

  • The DAO Squads infrastructure project was launched on the Solana mainnet.
  • The project also raised $5 million in a round led by Multicoin Capital.

CAD have been a hot topic in the crypto world in recent months, the vast majority of them currently being built on Ethereum. But with today’s launch of the Squads collaborative infrastructure protocol, the rising alternative block chain network Solana might seem much more appealing to decentralized teams and projects.

The squads announced their main network launching today at House Solana Hacker event in Moscow, and the planned deployment was coupled with the announcement of a $5 million strategic funding round. Multicoin Capital led the round, with participation from Jump Capital, Delphi Digital, Collab+Currency, SeedClub Ventures, Volt Capital and others.

What is Squads, exactly? It is “a collaborative infrastructure for Web3-native teams,” said co-founder Stepan Simkin Decrypt before the announcement. In other words, Squads provides the on-chain building blocks for Solana-based DAOs (or Decentralized Autonomous Organizations) to work beyond the chatter that happens in a Discord server.

“Right now in Web3 you can be an individual or you can be a DAO, but there really isn’t a way for teams to organize their decision-making and manage group funds. more transparent and trustless way,” Simkin explained. “Squads is about giving teams the flexibility to find the right framework to organize themselves and do things together in the Web3 space.”

Ready for teams

Squads’ feature set covers the full range of distributed team needs, including a multi-signature wallet that requires multiple validations to confirm transactions, a vault to manage and disburse team funds, Challenge protocol integrations for exchanging crypto funds and the ability to create proposals with tokenless on-chain voting.

Altogether, Squads appears to address many critical DAO needs on Solana in a single protocol, enabling decentralized collaboration while maintaining transparency. Simkin described the release as a big step forward for Solana’s DAOs, especially with the advent of a user-friendly multi-sig. wallet similar to Ethereum Gnosis Safe.

“It’s a young ecosystem, which is mostly full of builders — people come to Solana to build new protocols and new projects. We’re kind of coming in at the right time with the tooling we have,” Simkin said. He noted that some teams have resorted to individual wallets or difficult-to-use command-line multi-signature wallet approaches.

DAOs allow decentralized communities to come together for a common purpose, whether raise funds for a causeto pool cryptocurrencies for investments in NFTs and other assetsand to support the development of protocols and projects. Some have described DAOs as a group chat with a bank account, in a sense.

It’s not a whole new premise – in fact, the concept was popularized by the DAO, a major Ethereum project that was hacked in 2016 and changed the trajectory of the entire blockchain network. And it’s still in the news, even this week. But DAOs really started to pick up steam again in 2021, with ConstitutionDAO garnering extensive mainstream coverage in November.

Squads isn’t the only project building DAO infrastructure on Solana. Grape Network, for example, is a widely used toolset for Solana-centric Discord communities and DAOs. It’s so popular, in fact, that its token launch last September destroyed the entire Solana network when the bots tried to overwhelm the sale. Like Squads, Grape’s latest surge was led by Multicoin.

Grape focuses more on triggering Discord and tools for DAO communities, while Squads handles more complex governance and fund management aspects. Ultimately, they are meant to be complementary. Squads is designed to provide composable functionality that can work with or in concert with other Solana DAO tools.

It’s still relatively early days for DAOs on Solana, as evidenced by such important tools that just went live. Last week, Decrypt profile a current situation with MonkeDAOa community-run DAO that is embroiled in a dispute with the creators of NFT Solana Monkey Business (SMB) collection on the future of the popular profile picture project.

One sticking point is the SMB team’s request that MonkeDAO implement full chain governance, but there have been technical questions about how to make this work with SMB NFTs. Simkin—which displays an SMB NFT as its Twitter profile picture— said it’s a great example of how early Solana DAOs persevered despite a lack of tools and resources.

“MonkeDAO is a great example of how even when you don’t have the right tools and when you don’t have enough support like they had in the beginning, you can still do it,” he said. . “Tooling will catch up.”

Expand the team

Simkin said the investors Squads has brought together for this $5 million funding round have already brought a lot of knowledge and expertise to the table. “The amount of added value we’ve gotten from almost all of our investors in this current cycle is already beyond what we could have imagined,” he said.

Squads – which have previously raised a $1.5 million seed round— plans to use the new funds to grow its team and potentially expand its focus over time by building additional features for Solana teams. Simkin highlighted other ways DAOs can diversify their cash flow within squads, as well as additional social media integrations.

In addition to launching an infrastructure for use by DAOs, Simkin said they would also like to work closely with projects and brands to create bespoke DAOs. It is similar to what Dapper Collectives plans to do on Flowwith a two-pronged approach that provides tools but also an optional white glove service for more convenient integrations.

“It’s one of our great aspirations,” he said. “We would like to explore this in the future and get into the thick of it, and start building DAOs with the projects that exist.”

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