As we rocket through 2022, the web3 and NFT space continues to evolve at warp speed.
Grabbing headlines today, is the latest DAO with an ambitious moon shot set out before it. The aptly titled, BuyTheBroncosDAO is attempting to do exactly what its name pitches, become the first DAO to buy a major sports franchise, in this case the NFL's Denver Broncos. The latest estimate on the value of the franchise is sitting at around 4 billion dollars.
BuyTheBroncosDAO is the latest in pithily titled and boundlessly ambitious DAOs set out to do something extraordinary and culture changing. Sports teams have famously been publicly owned before, like the Green Bay Packers, but this would mark the first time that a professional sports team went fully web3 native, should the DAO succeed in their mission.
Part of the DAO's team include former blue chip tech lawyers and entrepreneurs with solid looking track records. The team is doxxed and their reputations seem legit and built for a project along these lines. The team has also smartly wrangled some political players into the early PR for the project, with Colorado governor Jared Polis being quoted heavily by business blogs and coverage. Polis comes out entirely in favor of the DAO succeeding, which looks to serve his state's political agenda of becoming a crypto first state. This is PR where everyone can win.
While web3 famously generates insane amounts of capital, a funding aim of 4 billion dollars is still a highly ambitious target. This is acknowledged by the founders of the DAO, unlike previous DAOs which have set an all or nothing approach to their financial goals. The founders of BuyTheBroncosDAO have lower tiered contingency plans that include raising only a portion of the 4 billion dollar franchise valuation, and then partnering with traditional investors to round out the purchase. It appears they are willing to stick with the project while having a firm grounding in reality.
The founders have also undertook a bit of financial engineering, which has caused previous DAO attempts to stumble when it comes to regulation. Instead of creating a separate LLC business entity for the DAO, which would be subject to high taxation and regulation, the founders are looking to establish a co-operative, much like how the outdoor brand REI is structured. This would give governance to the members of the DAO, while avoiding the scrutiny of higher taxation and regulation. Again, it seems the project has their financial and legal ducks in a row as they head into their opening sales.
The project has a launch target set for early March, and are currently hitting the PR trail hard and trying to drum up support for the ambitious cause.
We are still so early in the history of web3 and DAOs specifically. We haven't even really stepped onto the ambitious roadmaps they have set out. Only time will tell if this is a feasible and revolutionary way to organize group efforts and funding. On paper, it is all very sexy and exciting. Of course, once the first DAO succeeds, and changes history, it will only accelerate the momentum of the movement to push the boundaries further.
I can't help but think this whole group financial thinking was triggered by the success of reddit's Wall Street Bets and their single minding mooning of the Game Stop stock. This episode proved that even the most money loaded institutions are actually vulnerable to collective passion and pooled resources. This is the promise of web3, NFTs and DAOs. Right now we are seeing a million archers pulling back their bows with hopes of revolution. With hopes of re-writing the tired stories of a world that has forever been dominated by the 1 percenters. If these bands of rebel archers can band together and focus their passion and resources, they have a chance to chip away at the control of the old world and old money.
This is an exciting promise.
This is what deciding to invest in something like BuyTheBroncosDAO represents. Before this time, there was never a chance for someone off the street, with no connections and no qualifications to be a part of bidding on a major sports franchise. If they succeed in achieving the impossible, what else previously considered untouchable will fall next?