Introducing MCN Ventures

MCN Ventures
3 min readApr 21, 2021

MCN aims to establish a decentralized venture capital fund, which consists of two types of partners: general partners (GP) and limited partners (LP).

GPs are the major decision-makers of the fund. Together, they decide the overall direction of the fund, the number of LPs and GPs in the fund, the total financing scale of the fund, and the use of the fund.

LPs are the major contributors to the fund’s operations. They ensure the fund’s success through activities such as performing project technology and safety reviews and analyses, post-investment promotion, and community building and management.

In the first round of MCN fundraising, there will be 5 GPs ($200,000 USD contribution each) and 20 LPs ($50,000 USD contribution each), raising a total of $2 million USD.

DAO Governance

Voting power for GPs and LPs in the DAO correlate to their investment amounts. For example, a GP who invests $200,000 USD will receive 200,000 shares, and an LP who invests $50,000 USD will receive 50,000 shares. In this example, a GP will have 4x the voting power of an LP.

MCN Membership

  1. Adding / removing GPs: The first GPs will be added by MCN’s founders. After LPs have been added, any LP can initiate a proposal to replace an existing GP. This proposal will be voted on by all other LPs/GPs, and will be implemented after the vote is passed.
  2. Adding LPs: The first LPs will be added by MCN’s founders from the pool of existing Community Builders. The selection criteria will be based on contributions made by the Community Builders to MCN. Later LPs will be added by the existing GPs and LPs. Any LP or GP can initiate and vote on a proposal to add a new LP.
  3. Replacing LPs: When the maximum number of LPs has been reached, LPs and GPs will evaluate the work of existing LPs and vote to eliminate the least efficient LP.

Fund management

  1. GP and LP investments are transferred to the DAO treasury in USDC tokens.
  2. GPs decide the fund’s investment transfers by voting in the DAO. Project tokens obtained from investments enter the GP multi-sig wallet of the DAO Fund. The sale of project tokens is decided by GP voting, and USDC after sales are transferred back to the DAO treasury.
  3. When any GP or LP exits MCN (either actively or through voting), the returned funds will be the total amount of the DAO treasury * the partner’s share ratio. For example: the MCN treasury is established with a total of $2 million USD in GP/LP investment, and makes a $100,000 USD investment in a crypto start-up. An LP that initially invested $50,000 USD now chooses to leave MCN. The exiting LP will receive ($2,000,000 — $100,000) * (50,000 / 2,000,000) = $47,500 USD. All operations are automatically executed on-chain through the DAO.
  4. Every 3 months, any GP or LP can initiate a proposal to distribute the fund’s profits. If this proposal passes, 50% of the profits will be airdropped in USDC to MCN token holders.
  5. MCN token community airdrops can be proposed by any GP or LP. Such proposals are voted on by GPs and LPs and distributed from the GP multi-sig wallet.

MCN Token

MCN will issue its own profit-distribution tokens, and MCN tokens will adopt a 100% fair launch model, with no reservations made for any founders.

MCN has a total maximum supply of 100,000, and will be distributed entirely through airdrops over the course of one year. Minted tokens enter the GP multi-sig wallet and are transferred directly to airdrop contracts.

The airdrop distribution of MCN tokens is as follows:

30%: Airdropped to current GPs once a month

20%: Airdropped to current LPs once a month

50%: Airdropped to the community based on DAO voting, of which:

  • 20% will be awarded to active community builders who contribute to MCN, including those who help develop the MCN DAO / airdrop / token / website, those who create and share MCN promotional material, those who facilitate, moderate, and participate in community discussions, etc.
  • 20% will be awarded to funded projects based on performance
  • 10% will be airdropped to MCN token liquidity providers and the wider MCN community