An Introduction to Magnet DAO

Magnet DAO
4 min readOct 29, 2021

Magnet DAO is developing an advanced crypto incubator — the goal is simple: cultivate, incubate, and invest in a variety of protocols under the Magnet DAO name.

For the average investor, it seems next to impossible to invest into projects while they are still in their early stages, let alone when they are at the ground-level of development. These types of investments are generally restricted to VCs, Angel Investors, and the founding team. Magnet DAO conceptualizes a revolutionary approach, in which this gap can be bridged. This first-of-a-kind DAO will develop and nurture projects in-house. Additionally, MAG will drive an incubation strategy, helping other early-stage projects with growth, marketing, and investment across a variety of protocols.

This concept is all possible because of the Magnet DAO’s protocol of controlled value, and the bonding/staking mechanism that Olympus DAO first introduced. Our code’s basis is formed around a fork of the Olympus DAO protocol, but integrates unique twists on how we are able to access the treasury.

The premise of OHM is that it is backed by its protocol treasury. This treasury is composed of various tokens which in turn give OHM an intrinsic value that it should never fall below. Magnet DAO aims to utilize a small portion of this treasury to fund the innovative development of new protocols, as well as financially supporting and incubating new projects. Magnet DAO’s treasury will thus have investment exposure to projects in their earliest stages, delivering unmatched upside which can result in explosive growth. All this, while only allocating 10% of the treasury, so even if some projects are unsuccessful, 90% of the treasury is intact, providing a floor value for our token. The DAO committee will govern the use of the treasury set aside for new projects, deciding which types of projects to invest in as well as allocated amounts. The Magnet DAO team will also incubate these projects to ensure overall success, and our community will play a significant role in helping our incubated projects scale.

The first protocol that will be built is a native DAO tooling interface, which will be used for Magnet DAO. We want our governance system to be as smooth as possible and believe it is essential for us to develop a user interface that is seamless to use, so that all token holders (members of the DAO) can have an impact. We intend to license out this tooling to other DAOs in the future.

Given that the incubation is an innovative, never-before-seen core component of Magnet DAO, a deep-dive into the concept is only justified. Magnet holders receive the following benefits from this model:

Diversified treasury — a small, but important, level of exposure to projects that can yield explosive growth and value creation

Accessibility to investments that are typically only available to Venture Capitalists and Angel Investors

Early exposure to new protocols, without the arduous process of searching and filtering through thousands of dead-end projects. The DAO / core team will be building these projects ourselves and helping incubate projects that we believe in, thus increasing probability of success — all while at the earliest stage of investment

Community network effect — as we develop and incubate new, innovative protocols, our community of token holders will play a significant role in helping these projects gain recognition, traction and usage. On top of this, the DAO will aim to work on projects that are highly synergistic. We expect our MAG token to play a significant role in allowing holders to participate in the growth of upcoming projects as well

Magnet DAO isn’t just a fork of Olympus DAO. We are taking what was an incredible invention in DeFi and layering in a DAO that is hyper-focused on building and incubating early-stage protocols. We are adding a component to our treasury, that with just 10% exposure, can yield exponential upside. On top of this, we are building a community of people interested in participating in the growth and development of new projects.

We hope you are as excited as we are. More details on our launch will be released in the coming days — all major announcements will be posted on our Twitter, Discord, and Telegram.