Building the Internet Economy

December 8, 2021
By
Quinn Vedral

Nano-speed funding for Web3 projects

At Hyperscale, we understand that in the fast-paced world of Web3, projects need funding that moves at the speed of innovation. Our goal is to provide just that — funding that doesn’t get bogged down in bureaucracy, but instead moves quickly and decisively.

The Two-Stage Model

We’ve broken down Hyperscale into two stages:

Stage 0.1: Centralized Fund

Right now, we operate as a centralized fund with seed capital from Sam Altman. Investment decisions are made by the core team while we build a legally compliant DAO structure. This lets us move fast, learn, and set a strong foundation.

The focus is simple: fund promising projects and build a supportive ecosystem around them. These projects get capital, guidance, and access to a growing community.

Stage 1.0: Decentralized Fund

The long-term vision is a fully decentralized capital allocation model. Capital allocators with proven track records will manage the fund, backed by transparent governance mechanisms. Treasury ownership will be tokenized, and project investments will reflect community-driven decision-making.

We’ll experiment with different models for decentralized capital allocation, run tests, and iterate until we get it right. Legal and governance challenges remain, but solving them is central to Hyperscale’s future.

What We’ve Learned So Far

Our initial approach — the DAO race — didn’t work. It rewarded popularity, not quality, leading to groupthink and ignored applications. We’re moving past that.

Next, we’re testing a head-to-head voting system where voters choose between two projects. Votes will be weighted based on past performance. If a project gets funded, voters who backed it early will share in the rewards proportionally.

What’s Next

We’re making our first investments this week. More will follow during our upcoming hackathon, where DAOs will be created, compete, and earn funding. These DAOs will launch with capital, ready to build products, run campaigns, and reward contributors.

We’re also opening the ecosystem. DAOs in Hyperscale’s network will need help with governance, legal, marketing, and product development. Contributors can take on bounties, earn rewards, and work directly with funded projects.

Looking Ahead

Hyperscale is still evolving. The next steps involve refining our investment model, launching our first set of DAOs, and providing more details about the fund structure. Transparency will remain a priority — we’ll keep the community updated as we learn and grow.

The path ahead is challenging, but we’re focused on building a sustainable and scalable model for the long term. Our goal is simple: reshape how economies are built, with community, transparency, and impact at the core.

Written By:
Quinn Vedral
Hyperscale Team
Hyperscale is an data driven hedge fund dedicated to advancing financial technology and open-source innovation. We believe that supporting and contributing to open-source projects fosters transparency, collaboration, and long-term growth in the financial and tech ecosystems.
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