Hectagon is the world’s first DAO-governed Web3 VC funding platform. It is a financial platform with no entry barriers to entry: Anyone can join the Hectagon network, invest, and contribute value to projects that Hectagon invests with.
Value contribution in Hectagon’s protocol is recognized through $HECTA token rewards.
Hectagon
The CEO and Founder at Hectagon is Linh Han who is honored on the Forbes Asia 30 Under 30 list (2020) with 10 years of proven track records in Investment, Finance, and Startups Development.
He’s also the co-founder at VSV Capital, first Vietnam’s Accelerator and early-stage VC. In addition, VSV Capital was ranked #1 as the most active investor in Vietnam in 2022 by TechinAsia.
Over the last 8 years, VSV has made over 80 investment deals from Pre-Seed to Series B into 70 startups with founders from 9 countries, such as Loship, Base.vn, Modmo, Ship60, Nerman, Loop, and Vibeji, with a total valuation of over $300 million.
Hectagon has also received investments from a lot of experienced organizations and investors in the blockchain and crypto industry such as Mistletoe, founded by the Japanese Billionaire Taizo Son.
Tokenomics
The $HECTA is the proof of value contribution to building and growing the Hectagon protocol. 100% of the tokens will be minted by the protocol to reward the contribution of the community, team, and investors.
Token holders will be able to stake $HECTA to earn rewards and pay a transaction fee for services by Hectagon protocols.
Public investors will hold HECTA while the team and private investors will hold pHECTA and tHECTA. pHECTA and tHECTA are 2 tokens that reward investors (pHECTA) and teams (tHECTA).
Hectagon DAO will decide on the specific number, depending on various factors such as how much DAO can raise funds, how much the DAO can invest and the quality of investments.
What Does Hectagon Offer?
There are four angles that users will experience:
Skin in the game through buying HECTA on the Hectagon website, stake HECTA to receive staking rewards. In that, $HECTA listing on the Hectagon website is usually cheaper than the market price, however, users have to wait for some time to receive it.
When receiving HECTA, users can choose to stake it for a governance token (gHECTA) and receive staking rewards every 8 hours.
On the other hand, users can participate in investment activity in Hectagon Investment Portal. In that, gHECTA owners can vote to choose the Investment Committee board and specialists who would facilitate the investment procedure.
Also, they have a voice on which project to invest in by participating in a popular vote and commenting on the selection process.
Users can also participate in the Governance process in Hectagon Forum, Discord, and Snapshot to suggest changes to the protocol. Qualified suggestions will be proposed to gHECTA owner community to vote and implement.
Hectagon and its portfolio will post requests on Forum and Discord with rewards to quest participants. Therefore, users can work on it and earn rewards. Those requests often represent the value-added activity that a web3 startup usually needs.
The Hectagon Model and Investment DAOs & Launchpads
The notable thing is that Hectagon innovates from Investment DAOs & Launchpads as there is zero barrier to entry.
- Users of both Investment DAO & Launchpad have to buy its governance token as a form of club membership. In that, the more tokens they buy and hold, the better chance they have at winning a lottery ticket to invest in deals that come along.
- Hectagon allows users to gain exposure to seed and private investment as soon as they hold $Hecta tokens regardless of the amount.
- $Hecta token provides a double layer of protection.
- Not only does it serve as the membership and governance vote but $Hecta can be exchanged for every other token in Hectagon’s treasury. Therefore, even when $Hecta falls in price, users are still protected by the other type of tokens they can exchange into.
- As Investment DAO & Launchpad such as MakerDAO or BitDAO works like a brokerage where they take an investment deals and distribute that deal to their community members, the incentives for joining Investment DAO & Launchpad is short-term profit.
- Members of these communities don’t have any common goal or sentiment toward any project these platforms support. Hectagon collects all investments into a treasury instead of giving direct investment access to its members.
- Currently, the Hectagon network has over 300 reputable global KOLs and communities.
- The platform is also designed to recognize and incentivize its community members with a rewards system, which incentivizes them to be a part of your community and contribute specific values to your projects.
- Especially, its high-quality deals pipeline and win-win rewards mechanics for partners help to build the biggest effective business network through partnerships with exchanges, Defi protocols, and custody providers.
- Hectagon can help startups save up their time and increase high chances of closing the deals.
A Solution for the “Pump & Dump” Problem
Most Web3 projects face the “Pump and Dump” problem making the project not have enough capital to maintain operations and a large number of tokens being discharged, costing price imbalance.
Hectagon develops Smart Contract Investment, which locks away projects’ tokens for a long period in the treasury.
How to Get Started with Hectagon
It is simple to buy and stake HECTA , which is also the only thing a retail investor has to do to benefit from Hectagon.
With Hectagon, users buy HECTA then a DAO-appointed team of professionals will invest and optimize the portfolio for them.
In addition, Hectagon holds project tokens for a very long time so Hectagon will stimulate its users to provide support for projects. As a result, it benefits both retail investors and projects.
You can buy $HECTA straightforwardly without having an account. First of all, you will need to enter the website https://app.hectagon.finance/, then select “Connect Wallet” to connect your wallet. Click “Invest” and choose discount percentage and vesting time options. Then click “Buy” to purchase HECTA.
You will need to have $HECTA to stake the token. In order to stake $HECTA, connect your wallet and approve Hectagon to use HECTA in your wallet. Then, enter the amount of HECTA you want to stake or you can stake all HECTA in your wallet by clicking “Max”.
Double check the HECTA amount and click “Stake” to finish staking your $HECTA.
Conclusion
The model that Hectagon is adopting can become a new investment model that future projects and VCs follow. Individual investors, even those who have a small amount of capital, can access seed and private rounds for new projects and reap significant profits from the VC model.
The post Hectagon: DAO-Governed Web3 VC Funding Platform appeared first on Blockonomi.
