Decentralized autonomous organizations continue to gain adherents. In the case of Delphia, retail traders will be rewarded for providing their personal data.
Algo advisory startup Delphia has closed a $60 million investment round backed by some of the largest venture capital funds within the crypto industry, as it embarks on the creation of a new decentralized autonomous organization (DAO) data-centric.
Series A was led by crypto-focused venture capital firm Multicoin Capital, with additional participation from Ribbit Capital, FTX Ventures, Valor Equity Partners, FJ Labs, Lattice Ventures, and Cumberland. Delphia will use the funds to launch a new rewards token, as well as expand the ways users can contribute data to algorithmic models, which will be used to improve returns for investors.
Multicoin Capital Co-Founder Tushar Jain Speaks
According to Multicoin Capital co-founder Tushar Jain, data DAOs use user-provided data to benefit all contributors to the organization. As an advisory entity to Algo, Delphia will use user data to further improve the trading algorithms that directly manage your money.
On Twitter, Jain posted that, “I’m excited to announce that Multicoin has led a $60M round in @delphia with participation from FTX Ventures, Ribbit Capital, Cumberland, Road Capital, and others. Delphia is the first instantiation of a new type of organization uniquely enabled by Web3: a DataDAO.”
“Data contributors are rarely rewarded for their contributions […] Because they have no right to the value created by aggregated data, nor do they have a right to decide how their data is used, leading to a huge leap of faith in the aggregator – which, unfortunately, has been violated many times,” Jain explained. Data DAOs “solve this inequity by giving data contributors a direct economic advantage in aggregated data and the ability to dispose of it.”
Delphia’s investment platform offers long-term active management strategies. Users can invest a minimum of $10 to gain exposure to a diverse portfolio of individual securities.
About DAOs: Some Reminders
DAOs have emerged in various ways to give users access to communities free of hierarchical management. DAO structures have even received attention from national governments seeking to encourage the formation and development of projects within their own borders. Its proponents believe that DAOs incentivize the long-term sustainability of cryptocurrency projects by giving users a direct stake in their growth.
It is worth remembering that last June 6, MBS co-founder and CEO Holger Mannweiler noted that the DAO will play an important role in the governance of the business going forward, while also playing a key role in consumer research. He explained that, “The DAO will make all the important business decisions, from which beers we’re going to brew, how we’re going to price those without an NFT, where we’re going to sell the beer, etc.”
“What’s nice about this DAO is that it also represents a huge permanent target group, something other consumer brands have to spend a lot of time and money on,” he added.
DAOs offer a number of advantages to investors, such as retail cryptocurrency traders having an inherent incompatibility with traditional centralized financial systems. This distrust is only amplified when it comes to large institutions. DAOs level the playing field by bringing together the great institutional benefits without the centralized aspect of pooling member resources and coming together as a community.
The biggest challenge facing DAOs right now is the lack of infrastructure to support their growth. In this sense, observing DAOs evolution seems to be a sensible step to follow.
By Audy Castaneda
