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The Wellermen Group - Algorand DAO
In this week's article we're diving deep in new territory. I'll be talking about The Wellermen Group. This is AlgoDaddys first coverage of a decentralized autonomous organization (DAO). The Algorand blockchain and ecosystem have been growing fiercely in the last year, but we have yet to see many DAO's pop up. The Wellermen Group is among the first decentralized autonomous organizations on Algorand, and recently published their tokenomics plans and business structure.
Let's roll up our sleeves and dig into this weeks Algorand Deep Dive.
What is a DAO?
Don't sweat it if you don't particularly understand what a DAO is at first. I'll do my best at explaining it here below.
DAO stands for decentralized autonomous organization. As the name implies it's a decentralized organization which functions automatically. It's basically a type of venture capital fund, however instead of board directors or management structure, the investment decisions are in the hands of the automated rules set by the DAO developers. These are typically open-source for transparency.
The idea is that the autonomous process eliminates human error. With that being said there's usually a crowdsourced part of the decision-making as well, meaning members of the DAO collectively participate in the governance of the project.
In conclusion a DAO is like a VC fund which management is handled through automatization and governance.
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What is The Wellermen Group?
The Wellermen Group was founded in 2021. It's a decentralized autonomous organization (DAO), whose vision is to "steer in unison", for the users it's meant to be easy to navigate and help navigate the potential difficulties of decentralized finance. They put emphasis on disrupting the archaic finance industry by expanding financial inclusion (governance), using technology to cut down operational costs.
The DAO operates on the Algorand protocol, and while emphasis is on the Algorand ecosystem, the investments are not strictly limited to Algorand alone. Furthermore there are future plans of interoperability (crosschain technology).
Algorand was chosen for its scalability, speed, and security. Algorand offers smart contracts built on Layer 1, which shares the highest level of security in modern blockchain technology.
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| WELD and WELLS Tokens |
Business Structure & Governance
In order to provide participants with high grade investment management through the DAO, The Wellermen Group plans to utilize contemporary investment tools & technology. Among these are machine learning & AI, predictive behavioral analytics, and data-driven marketing. Moreover they use automated customer service technology, while also utilizing chatbots and AI interfaces to assist their DAO participants.
In order to govern the project The Wellermen Group are using their native Algorand Standard Assets - WELLS and WELD. WELD is the DAO token, and WELLS is their utility token.
WELD must be staked for the entire governance period,
with a minimum one vote casted to receive governance reward. 1 Vote = 0.01 WELD.
The Wellermen Group also plans to utilize USDC for its cross chain availability, ease of auditability and price stability. USDC, unlike USDT, is 100% backed by US Dollars held in escrow and independently audited.
A Sustainable Expansion Strategy as an Algorand DAO
One of the major goals of The Wellermen Group is to build a business that will
survive off its own cash flow without injecting finance from external sources once the
business is officially running. In order to be attractive to their customers and competitive in the market the WELD developers have set on lower profit margins initially.
The company also underlines the importance of proper staff welfare and education. They have made sure that the correct structures and processes are in place to make it a prosperous working place, which also emphasizes training and personal development in order to provide high quality results to their customers.
The Wellermen Group Tokenomics
The Wellermen Group have minted 1,000,000,000 ($1 billion) WELLS, which corresponds to 100,000 ($100K) WELDs. Hence 1000 WELLS = 0.01 WELD.
See the image below for the official distribution at launch:
The Wellerman Group: Algorand DAO - Tokenomics at Launch
NFT Giveaway - AlgoKnitter Collaboration
The Wellermen Group have teamed up with AlgoKnitter and made 100 NFTs that will be sold through a silent auction hosted on The Wellermen Groups website. The auction will take place during Q1 of 2022. In addition to an NFT, the winners of the auctions will receive both DAO and utility tokens. According the Wellermen team this will be the only time you can directly purchase DAO tokens. Other than that users can only earn DAO tokens from staking the Wellermen Groups utility token.
The final details about this giveaway will be announced on The Wellermen Twitter. You'll find the link in the later parts of this post.
What Does The Wellermen Group Offer?
At the moment the The Wellermen Group Algorand DAO has just launched and most services are yet to be announced. You can expect additions to roll out progressively as the organization grows.
As mentioned on their website, they are currently planning to offer a wide array of products. In terms of healthcare and insurance they are looking to offer Decentralized Life Insurances, Decentralized (Prepaid, Zero Deductible) Health Insurances, Prescription Drug Discount Partners.
Furthermore, The Wellermen Group plans to offer Custodial and Non-Custodial Crypto Banking. This would include crowdsource loans and direct deposits. They are also looking to offer Financial Estate Planning, Retirement Plans, and Personalized ETF's.
Why Invest in a DAO?
The most natural question to ask yourself is "why invest in an Algorand DAO?". Most likely it's the same reason you'd have for making any investment - you look at the potential benefits versus the risk. So let's talk about risk for a second. Your investment is essentially at the hand of an autonomous system and crowdsourced decisions. This means you need to trust the developers and organization and be aboard the plan for their envisioned investment model. It does well - you do well. It does bad, you do bad.
I look at it this way, investing in a DAO is the next generation of VC investing. In that sense, VC investing has at times been immensely profitable, but the majority does not exceed stock market returns. Nevertheless, stock market returns are grim for the future decade to come while interest rates are on the rise.
With that in mind, if you believe in web 3.0 and crypto technology in general, it's probably worthwhile to consider DAOs as another investment alternative or part of a your financial strategy as whole. Especially if they offer more benefits than sole investment returns.
If you are interested in investing in The Wellermen Group then your current best bet is waiting for an Algorand DEX like Tinyman to (re)launch. The developers have commented that they will support a Liquidity Pool for their WELL token.
Disclaimer: This is not financial advice. Carefully do your research before engaging with any platforms or organizations presented on AlgoDaddy. Your capital is at risk.
Social Media - The Wellermen Group
You can follow the project on the official Social Media platforms:
Twitter - @WellermenGroup
Discord - The Wellermen Investment Group
Reddit - /r/The_WellermenGroup
Facebook - The Wellermen Group | Facebook
Final Words
As one of the first DAOs being launched on the Algorand protocol, The Wellermen Group is a breath of fresh air. For those looking to expand their investment horizons this is a perfect opportunity to dig deeper. It would be an opportunity to diversify, as well as taking further part in the growing financial world of crypto. As I see it myself, DAOs are another tool for the investment toolbox in order to build yourself a balanced portfolio - whether it's an Algorand DAO or something else.
It's certainly not the last time we'll be covering decentralized autonomous organizations in the AlgoDaddy blog.
If you enjoyed this post, then why not head over to my AlgoDaddy Guides Page, where you can find all the guides I've written about the Algorand ecosystem so far. Follow me on Twitter to stay updated on the most recent AlgoDaddy articles.
Happy Sunday! Algo and out!
AlgoDaddy
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