Social DAO - Macro Views

Dawn of SocialDAO: Strategic Framework, Solana Migration & Institutional Capital Lines

Published 18th Jan, 2025

Genesis of Social DAO

Social DAO is a co-operative of humans and AI agents, bridging SocialFi and AI. Its native currency $SOCIAL will be used as a voting and governance tool, granting gated-access for various launches of sub-funds and agents, as well as the currency for social attention in the social engagement prediction market product.

The core team behind Social DAO previously built the largest app on Lens protocol and the largest external app on Farcaster, the Phaver app, which received around 1 million downloads and raised approximately $10 million of funding; it was listed in centralized exchanges at the end of 2024 with ticker $SOCIAL.

DAO's tokenomics

Social DAO is currently running on operating expenses that technically round to zero. That is a massive difference compared with very high OPEX during the earlier Phaver app times.

"There is no longer a negative drift on the token. Everyone was fired to push the salary costs to zero. All hires have to complete IQ and EQ tests, to level set on the same playing field, same as for AI agents, only a select few will be activated based on various iterations. We have a core team of 5 (vs. 30 earlier) including the best devs from Phaver. Otherwise, for the time being, the DAO will focus on integrating AI agents into the workflows, which have basically zero cost impact. In addition, we are launching various pre-bonding curve social infrastructure that plugs into the existing launchpads - as well as a social prediction market"

All of the remaining treasury will be moved during Solana launch to Streamflow.finance with transparent and public time-locks, over the next couple of days.

On AI

The gradual integration and mindshare gain of the AI/agents, which will happen in 2025, will have impacts and consequences on crypto that are far wider than what we have seen so far. Rather, it will create a massive new paradigm of decentralized capital, where AI agents act as a key catalyst and building blocks igniting new innovative financial and company/DAO structures for the decentralized web.

The agents don't only take away the pain of operating with current web3 frontends from users' perspective, but more importantly, will shape how new tokens are launched (incl. as groups of individuals) - as the new mechanic also unlocks legally and structurally streamlined and de-risked funding vehicles - which will change everything from how funds are pooled and further invested to how in general how capital will flow on the supernational internet layer.

SocialDeFAI Product Suite and Strategic Vision

The DAO has two complementary products:

Social Staking, our flagship platform enabling $SOCIAL holders to stake on the performance of creators and AI agents across both decentralized (Farcaster/Lens) and centralized (X) networks. Launching within weeks, the platform will also offer white-label solutions through our Social Staking as a Service (SSaaS) framework, supporting multiple tokens and ecosystems.

Wrapper.fun: Currently in stealth development, our second product revolutionizes token launches through an innovative pre-bonding curve mechanism. This platform democratizes access to early-stage opportunities by enabling strategic community participation before traditional bonding curve entry points. By orchestrating social momentum and capital formation in the pre-launch phase, we're creating a more equitable distribution of value.

Earlier published example agent/launcher, Monai Lisa Launch Protocol, currently serves as an artistic abstraction of our pre-bonding curve system. Gradual product revelation and agent launches are scheduled still in January, accompanied by a comprehensive overhaul of our community engagement channels, including AI-enhanced DAO communications.

Social DAO's vision over the long term is to evolve into a decentralized social financial institution. Social DAO is pioneering the DAO 2.0 model, transcending traditional organizational structures through AI-driven capital coordination. While current market leaders like ai16z, AIXBT, and Vader have made significant strides in AI agents, and platforms like Virtuals and Daos.fun have innovated in launch mechanics, the industry remains in its infancy.

Market Opportunity

The current landscape is characterized by:

  • Centralized control through insider cabals
  • Artificial barriers to entry via excessive paywalls
  • Reliance on personal connections for access
  • Pre-orchestrated launches that benefit select groups

Our Solution:

Social DAO's product suite targets the most lucrative phase of token evolution: the pre-launch stage, where the magical moving creature of 100x-1000x currently dwells. This magical being keeps on rapidly moving, changing it's exact place each bull market cycle. By democratizing access to this critical phase and leveraging AI & DAO's currency to find or create it, and distribute the upside proportional to social contributions, we're creating a new paradigm for value creation. Our approach aims to re-write traditional gatekeeping mechanisms while ensuring sustainable, community-driven growth, for those who are part of the DAO.

On the products side, we aim to bring back also the social feed experience as a new app during 2025, as many fans of the earlier Phaver app have needed to say temporary bittersweet good bye. On partnerships side, trading clan activity, with AI agents, is also being launched.

AI and Crypto Convergence

The convergence of AI and cryptocurrency markets represents a paradigm shift in decentralized finance. The space is poised for significant growth, with current developments representing only the initial phase of integration of AI/agents to the systems to create DeFAI.

"In our previous lives, incl. structuring various funds and vehicles at Goldman and as AI expert at VC fund, the thesis was already brewing up. At the time the industry was still at the stages of robotic process automation (RPA) and OpenAI had recently been founded. But the thesis was already back then clear: at some AI and crypto would converge creating a powerful state change, and it's happening now, pulling large amount of gravity with it"

The integration of AI agents in 2025 will have far-reaching implications beyond simple trading activities or ChatGPT implementations. We anticipate:

  • Creation of new paradigms in decentralized capital
  • AI agents serving as catalysts for innovative financial structures
  • Transformation of DAO and company structures in the decentralized web

Market Evolution and Token Launch Dynamics

The cryptocurrency market has evolved through several distinct phases of value creation and distribution:

Challenges in Value Creation

  • CEX launches: Over 90% of coin launches at TGE show negative performance
  • KOL gem groups: High front-running rates and low hit ratios
  • Traditional launch platforms: Pre-orchestrated launches exceeding 90%
  • Memecoin market: Limited upside potential at high valuations and limited access to early 1000x, with pump.fun saturation with con-artist/cabal-launches

Emerging Trends

Market leaders like ai16z, AIXBT, and Vader are pioneering new approaches in the agent space, while platforms like Virtuals and Daos.fun are innovating in launch and funding vehicles. However, several challenges persist:

  • High barriers to entry for new token launches
  • Centralization of value creation opportunities
  • Uneven distribution mechanisms

Future of Token Launches in the AI Supercycle

The integration of AI agents is reshaping how new tokens are launched and how capital flows through the cryptocurrency ecosystem. Key innovations include:

Structural Changes

  • AI-driven launch mechanisms
  • Novel pre-bonding curve setups
  • Integration of social momentum in launch dynamics
  • Innovation with token utilities in social settings, incl. gating/exclusivity, also for privacy and to control overheated message volume of individuals (digital minimalism while being tapped into the matrix almost 24.7)

Pre-Bonding Curve Innovation

The pre-bonding curve stage represents a critical opportunity for value creation and fair distribution. This phase allows for:

  • Building social momentum before launch
  • More equitable value distribution
  • Reduced barriers to entry for community participation, although gated with DAO membership and proportional to holding/staking amount

We all know that less than 1% of pump.fun traders are actually turning meaningful profit as the launches have evolved into cabal and A-curve orchestrations, with tiny fraction of launches having long-term fundamentals, except other than riding the early price momentum, and except for some memecoins that graduate into cult phenomena.

Just to even try to launch something as an individual, you have spin up a telegram group, website, gather attention, make sure it did not get sniped, etc., to have the slightest changes of success. To launch on Virtuals requires currently significant initial capital or momentum boost to graduate from the bonding curve, same goes for other platforms like vvaifu, Top Hat or Bonsai, as they have less liquidity available in terms of overall demand and eyeballs.

"Upstream, all the way to where the river starts, is where the opportunity lies - in terms of allowing social capital to build momentum and share to the upside - and what has in all previous cycles also been causing the largest part of the adoption via the gold rush dynamic. This upside is hard to find by investing in CEX listing, already heavily valued graduated memecoin, etc., and many of the early opportunities are either too skeuomorphistic or waiting to dump on fresh blood. There is already a problem of over-tokenization, which can be alleviated with pre-qualification, as the future world is going to be filled with a lot of currencies, that reside in the internet, as long as they have attracted threshold level of consistent liquidity and volume"

There is also likely to be a significant shift in demand for memecoins (with limited utility) and AI coins (with both characteristics), which is already happening towards the latter.

Capital Structure & Funding Update

Social DAO has secured multi-million dollar flexible capital facilities from strategic investment partners, deployable at our DAO's discretion as we scale operations, but sized/deployed gradually, based on token price, and to account for minimal treasury dilution.

Evolution of DeFi Institutions

The long-term vision for decentralized finance institutions is evolving with AI integration. Key aspects include:

DAO 2.0 Model

  • AI agents as fund owners rather than individuals
  • More agile structuring and deployment
  • Novel beneficiary models

Future Implications

The convergence of AI and DeFi is expected to create new forms of:

  • Capital pooling mechanisms
  • Investment vehicles
  • Governance structures

Evaluation Framework for AI Tokens

For Social DAO, and every company out there, it's more important to focus overall on the unit economics of its business model and overall impact on the token. That's where, AI is going to fully change the dynamics between altcoins, memecoins and AI tokens. Lowering operational costs and focusing on revenue / positive cash flow is the only way to not dilute the future of the token. AI altcoin is like memecoin with utility. Similarly, AI-powered DAO is like a crypto company with close to zero operational cost burden.

Before the current AI wave, only meme coins possessed this characteristic, i.e., no cash drag on the token as salaries and costs are zero or minimal - which is probably the key reason why memes have been outperforming alts in the current cycle.

There is likely to be a great re-utilitization reset, which will benefit AI tokens and AI agents, as they start to form utility-driven systems in the decentralized web, while possessing the fun and low cost burden aspects of memecoins.

Tomi Fyrqvist, co-founder, Social DAO

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Media contact, please email media@socialdao.ai or DM on X at @ai_socialdao