Our Venture DAO Model
The final goal of the Thorstarter DAO is to evolve into on-chain governance structure called the Valhalla Venture DAO. In this later phase, DAO members will identify and recommend projects, provide opportunities for liquidity pools, and adjust incentives for liquidity providers. Members of the DAO will be able to pool capital and decide which projects to support.
On-chain governance will allow XRUNE holders to propose and vote on a number of strategies via the DAO. Execution of these strategies will then be provided by Council members. The Valhalla Venture DAO will allow democratic voting for protocol upgrades and new features, as well as treasury allocation. Decisions will be made via Discord discussions, community calls, forum discussions, and ultimately Snapshot votes.

The Venture DAO model

A Venture DAO is a decentralized, community-governed group that invests the combined capital of its members. Whereas in traditional venture capital a small number of general partners make high leverage decisions to allocate the capital of limited partners, all participants in a Venture DAO can act like general partners by voting (if they so choose).
Venture DAOs stand out from traditional investment vehicles because they forgo top-down management structures, lack centralized leadership and instead rely on community voting for consensus. With the core purpose of a Venture DAO being capital allocation that can lead to uncapped financial upside, the venture use case is among the most compelling of any DAO application.

Voting Model Explained

The Valhalla DAO voting model took inspiration from Compound’s GovernorAlpha as well as MolochDAO but with added innovations, notably:
  • Added support for pools: multiple options per proposal instead of just a for/against
  • Ability to support multiple actions per option so multiple transactions can be executed by one proposal.
  • Support submitting EIP-712 signed votes for potential gasless voting in the future
  • Uses a “voters” contract to snapshot voting power, and addresses used can be updated

DAO Rewards

Thorstarter’s primary profit mechanism is launching IDOs to which we grant initial liquidity. As outlined in our Shared LP Model post, this acts like a pre-seed investment in up and coming projects that can be slowly harvested once they’ve successfully launched and reached exit velocity.
Over time, Thorstarter will liquidate our half of the shared LP, creating steady buy pressure for XRUNE. In addition, rewards come from fees collected from the XRUNE seeded liquidity pool (outlined below in Step 3 of the PROJ example).


Here’s what it looks like for hypothetical PROJECT ($PROJ)
Step 1: Pre IDO — Thorstarter issues a liquidity grant to PROJECT to seed an XRUNE-PROJ liquidity pool. Ownership of the pool tokens is split 50/50 between Thorstarter and PROJECT.
Step 2: Launch Week — PROJ experiences 10x price appreciation, resulting in the value of Thorstarter’s half of the liquidity pool increasing significantly (how much will depend on the $PROJ multiplier vs $XRUNE multiplier).
Step 3: Fee Distribution — Fees from the 50/50 LP will be split according to the following:
  • 25% to Thorstarter treasury
  • 5% to ecosystem liquidity fund / council
  • 35% to current vXRUNE holders
  • 35% to snapshotted vXRUNE holders for specific project
Step 4: 2–6 Months Later — When XRUNE can unwind its 50/50 LP tokens, it will slowly sell them to buy XRUNE back from the market in a way that is gradual and will not negatively impact PROJ price. The buy pressure will likely increase the price of XRUNE, while purchased tokens will then be distribute to DAO members based on vXRUNE snapshots around PROJ launch.
Note that the DAO may elect to hold some of the project’s PROJ tokens rather than sell them and buyback XRUNE, and this can be done on a project-by-project basis. This would have several benefits: it could act as an insurance policy in the case that the Thorstarter treasury ever needed to replenish its supply of XRUNE at a later date, and could also establish a basket of assets against which the Thorstarter treasury could gain yield — akin to protocol controlled value (PCV) which is at the heart of tokens such as OHM.
We invite you to accumulate vXRUNE and participate in the Valhalla Venture DAO to benefit from the vast potential of Thorstarter IDOs.