The raise is the mechanism through which projects on ArchDAO secure funding from investors. This process defines how capital is committed, how tokens are allocated, and how funds are handled once the raise concludes.Clear mechanics and predictable outcomes allow investors to evaluate risk accurately and allow founders to raise capital without overextending their project.
Each project raise is open for a fixed period of time. During this window, investors may commit capital to participate in the ICO.Once the raise period ends, no additional commitments are accepted.
Investors commit capital to the raise using USDC. These commitments represent an intent to participate in the project’s upside, subject to the final raise parameters selected by the founder.Committed capital is held until the raise is finalized or refunded.
Tokens are distributed on a pro rata basis among all participants whose commitments are accepted. Each investor receives a share of the token supply proportional to their accepted contribution.
Each raise includes a discretionary cap that allows the founder to choose how much of the total committed capital is accepted by the project.This means the total amount committed by investors may exceed the final amount raised.
If total commitments exceed the selected cap, allocations are scaled down proportionally. Any excess capital is refunded to investors.This ensures that all participants are treated fairly regardless of commitment size.
If a project receives $2,000,000 in total commitments and the founder caps the raise at $1,000,000, each investor receives their proportional share of tokens and 50 percent of their committed USDC is refunded.
The discretionary cap allows projects to raise the amount of capital they actually need while still allowing strong demand to signal interest.This mechanism helps prevent over-raising, reduces gaming behavior seen in other launch models, and provides a better experience for long-term investors.
When a raise meets its minimum and is finalized, all accepted capital is transferred into a project treasury governed by token holders.This treasury becomes the primary source of funding for the project.
Following a successful raise, the authority to mint new tokens is transferred to the treasury. This ensures that future token issuance is subject to governance rather than unilateral control.
A portion of the raised capital and tokens is used to provide liquidity on supported trading venues.This process helps establish healthy market conditions around the token following the ICO.
Teams may spend from the treasury according to their configured monthly budget. Any expenditures exceeding this budget, as well as any new token issuance requires a proposal to be raised and accepted by the investors.
