It’s great to gather together again with all of you! Over the past month, we’ve journeyed through a series of remarkable and inspiring experiences together. July marked a significant milestone in our evolution, a time filled with noteworthy achievements that are absolutely cause for celebration.

This monthly report will delve into the highlights, milestones, and triumphs of Ink Finance throughout July. Our team has made substantial strides in product development, marketing, and community building. It’s important to note that these accomplishments are a testament to each team member’s relentless dedication and collaborative spirit.

Let’s take a moment to reflect on the memorable moments that made July truly special.

Azeem Khan Joins Ink Finance Advisory Board

Azeem Khan, a respected crypto investor, serial entrepreneur, and Head of Impact at Gitcoin, has officially joined the Advisory Board of Ink Finance, the leading Web3 Financial SaaS. With a remarkable academic and entrepreneurial background and his influential presence in the crypto industry, Azeem’s addition to the team promises to bring valuable insights and expertise to the table. Read InkSight’s interview with Azeem and stay tuned on Ink Finance’s journey to revolutionize decentralized finance!

Social Event — Gate Live Panel on RWA

A live panel discussion on Real World Asset was held on July 20th, featuring Tony Tang, CEO of Ink Finance, Yan Meng, co-founder of Solv Finance, and prominent industry expert Colin from Mint Ventures.

In this engaging virtual event, Tony Tang and the panelists delved into the transformative impact of RWA on traditional finance, supply chain, and other sectors. They shared valuable insights on how blockchain technology, including Ink Finance’s platform, revolutionizes asset ownership, liquidity, and accessibility. The discussion will also touch upon regulatory considerations and best practices for ensuring compliance and security when dealing with real-world assets on the blockchain. Click here to review the live panel on YouTube.

Community Event

INKR Staking campaign had completed successfully

One of the notable updates is the successful completion of the STAKING campaign, which has been a significant success for us. Let’s take a look at some of the remarkable accomplishments of the STAKING campaign:

Impressive INKR Staking Total: We are extremely grateful for the participation and support from our users, which resulted in an astonishing total of 75,501 INKR staked. This reflects our users’ confidence in Ink Finance and their recognition of our products.

Over 1500 Participating Staking Addresses: The STAKING campaign attracted over 1500 addresses to participate in staking. This demonstrates our community’s vibrancy and diversity and showcases users’ active involvement in the Ink Finance platform.

Over 500 New Users on the INKR score platform: Our rewards website welcomed over 500 new users during the STAKING campaign. This growth signifies the continuous appeal of our products and services, expanding our user base.

Over 5000 New Followers on Official Social Media: This further strengthens our connection with users and allows more people to become acquainted with and engage in the Ink Finance community.

These achievements would not have been possible without our users’ tremendous support and trust. We are thankful for your recognition of Ink Finance and are committed to providing top-quality products and services.

Ink Finance AD Online

Our branding team has crafted a new video to amplify the reach of Ink Finance, boost user engagement, and foster a more vibrant community. We aim to elevate our brand visibility and trust and attract more investors who share our long-term vision and developmental objectives. Through this video presentation, we aspire to invite more individuals to become part of our community, collectively propelling the evolution and innovation of Web3 finance.

Check the Video now: Ink Finance A SaaS for Web3 Finance.

Product Development

Authorize the creation of sub-dao by distribution

We are proud to introduce the option for creators to create token-governed DAOs that require holding the Meta(mother) DAO’s tokens when creating a sub-DAO.

Advantages of Holding Mother DAO Tokens:

◾ Enhancing Security and Credibility: By mandating the possession of Meta DAO tokens, we added an additional layer of security to the DAO ecosystem. This measure discourages malicious or unauthorized creation of sub-DAOs, safeguarding the overall integrity and credibility of the governance structure.

▪ Facilitating Resource Sharing: With the requirement of holding Meta DAO tokens, creators can access and utilize the Meta DAO’s stake engine for their sub-DAOs. This facilitates resource sharing, optimizes efficiency, and streamlines the management of multiple interconnected DAOs.

Customized DAO Member Self-Certification

We are thrilled to introduce a significant new feature allowing DAO members to verify identity by uploading custom authentication files. Users have complete control over the content of these files.

▪ Enhanced Identity Verification Flexibility: Unlike traditional identity verification methods that often have limited options, our custom authentication feature allows users to upload verification files based on their specific needs and scenarios. This flexibility ensures that identity verification adapts to different situations and requirements.

▪ Improved Verification Accuracy: Since users upload their authentication files, these files are often more specific and personalized, providing more accurate evidence of user identity and qualifications. This contributes to an overall increase in verification accuracy and credibility.

▪ Support for Diverse Use Cases: Customized authentication can be applied to various scenarios and industries, including enterprise verification, identity authentication, and voting participation, among others. This versatility makes our product suitable for different users and organizations.

White Lable

We’ve successfully implemented our White Label feature. This empowering addition allows Meta DAOs to personalize their ecosystem by displaying their unique DAO List.

▪ Brand Customization: With the White Label feature, Meta DAO can customize the appearance and design of their DAO List to align perfectly with their brand identity. This ensures a consistent and cohesive user experience, enhancing brand recognition and trust.

▪ Enhanced Credibility and Trust: A personalized DAO List instills confidence and credibility among community members. When users see a DAO List that reflects the project’s unique identity and values, it fosters a sense of trust and legitimacy.

▪ Expanding Ecosystems: The White Label feature facilitates the growth of various ecosystems within Ink Finance. Project owners can cultivate their communities and nurture diverse DAOs, leading to a more vibrant and interconnected ecosystem.

▪ Facilitating Partnerships: With the ability to showcase their DAO List, project owners can attract potential partners and collaborators. This feature opens up opportunities for meaningful collaborations and synergies within the broader blockchain community.

About Ink Finance Ink Finance is an on-demand financial management SaaS, enabling on-chain organizations to build effective operation structure and perform best-practice financial management. Motto: Finance is built on credit, and credit comes from competence.

Learn more about Ink Finance and what we’re building: Telegram | Announcement | Discord | Twitter |Website| Medium | Youtube | Linkedin | Mirror | CMC

On the product front, we've introduced two significant features - No Token Governance and Stake Engine - both now live on our beta network. Regarding community growth, we're thrilled to have welcomed thousands of new members to the Ink Finance family. Simultaneously, we've broadened our horizons by partnering with leading investment platforms.

Now, let's delve into these exciting milestones!

Forging New Frontiers In Partnership with VeDAO

Ink Finance is thrilled to announce a partnership with VeDAO, a DAO-led investment and financing platform. VeDAO leverages the collective wisdom of its community, fostering an environment where elite insights thrive. Ink Finance's flexible scaling structure, robust security, and comprehensive compliance, combined with this collaboration, will actively explore new frontiers in the DAO landscape.

As part of this partnership, VeDAO will establish its DAO on the Ink Finance platform and launch a governance campaign to inspire active user participation in DAO governance. We're excited about this collaboration's potential for fostering innovation and active community engagement.

Community Event

INKR Staking Pool Live on Ink Finance

In celebration of the STAKE ENGINE going live on Testnet, Inker DAO has initiated the first phase of the INKR staking campaign on Ink Finance, offering a reward of 30,000 INKRs. Any INKR holder can stake to earn more INKR - the more you stake and the longer you keep it staked, the more INKR rewards you earn.

Just one hour after the campaign's launch, over 200 addresses had already participated in staking. We've seen over 2750 transactions and more than 45,691 INKR staked. We're thrilled with the results of our inaugural staking campaign and extend our gratitude to all participating members.

Learn more: Staking Pool.

Ink Finance’s Social Media Campaign Launched on GALXE

INKR DAO has launched its first social media campaign on GALXE, the premier platform for web3 projects to cultivate and expand their communities. As a token of our appreciation for the burgeoning interest in InkFinance, we're offering a reward pool of 25,000 INKRs and 5,000 OATs for this campaign. Excitingly, in just three days since the campaign went live, we've already seen participation from over 5000 crypto users!

The campaign has led to a substantial increase in followers across INK's various social media platforms. These new community members have actively participated in our STAKING activities and shown serious engagement by asking insightful questions about the event and the project in our group discussions.

Learn More: Ink Finance Galxe Campaign 

Influencer Marketing

Renowned South East Asia crypto influencer, Danish (@feature_earning), recently dropped an exhilarating YouTube video discussing the fascinating world of Ink Finance, provided his devoted followers with an in-depth research analysis on Ink Finance and and  introduced the latest event organized by InkerDAO, captivating his audience with the promise of an exciting future for Ink Finance.

To watch the full video, please click here. 

Product Development

Stake Engine Functions live on Beta

Launching the Stake Engine feature in beta marks a significant milestone for INK. This feature paves the way for DAOs to implement a stake-to-governance policy, integrating committee membership, voting rights, and incentive benefits into the DAO framework. 

Token holders can stake their tokens to gain voting rights and rewards. Additionally, by staking a predefined quantity of tokens set by the DAO creator, token holders can qualify for a nomination for committee manager roles. This development underscores our commitment to fostering a more inclusive and participatory governance model.

Stake Engine Mechanism aims to empower DAO:

🔹Safeguard DAO security

🔹Enhance governance engagement

🔹Promote token holding and long-term investment

🔹Build a loyal community

Discover more: here

No Token Governance Functions Live on Beta

As a Web3 finance infrastructure, Ink Finance aims to provide a comprehensive, zero-code platform to cater to the financial governance, management, asset management, and on-chain asset tokenization needs of Web3 projects. A key innovation we've introduced is the No Token Governance mechanism.

No Token Governance allows projects to customize badge names and quantities and assign voting rights to meet their unique governance requirements. This flexibility underscores our commitment to providing tailored solutions that empower projects to manage their governance in a way that best suits their needs.

No Token Governance functions that empower DAOs:

🔹Flexibility and Innovation: Adapts to various governance needs and developmental stages, fostering an environment of continuous innovation.

🔹Fariness: We strive to prevent wealth concentration and the undue influence of a few token holders on decision-making, promoting a more equitable and democratic governance process.

🔹Long-Term Orientation: A focus on long-term benefits and sustainability.

🔹Anti-noise: Effectively isolates the uncertainty of community activity and crypto markets, fully realizing the true value of communities.

Discover more: here

Check our Youtube for No Token Governance

About Ink Finance Ink Finance is an on-demand financial management SaaS, enabling on-chain organizations to build effective operation structure and perform best-practice financial management. Motto: Finance is built on credit, and credit comes from competence.

Learn more about Ink Finance and what we’re building: Telegram | Announcement | Discord | Twitter |Website| Medium | Youtube | Linkedin | Mirror | CMC

Marking a significant milestone in our product development, the introduction of the Stake Engine completes the governance framework offered by Ink Finance: the no-token mode, the token staking mode, and the hybrid mode. This is a true SaaS grade feature that gives DAO creators the flexibility that best suits their project’s needs at varying stages.

Now, let’s turn our attention to the intricacies of a token staking DAO.

Creating a Staking Engine-Powered DAO

To establish a token staking DAO, creators can create a new staking emission pool or share an existing one. For the newly created, they can specify the number of tokens as the total reward emission, as well as their corresponding release timeframe. Our smart contract handles the task of distributing rewards to participants. It does this based on the amount staked and other defined staking parameters, executing these distributions daily.

Creators of a DAO must specify the Pledge requirements for nominated committee managers. Only members fulfilling these requirements are eligible for nomination to the Committee Managers roles, and the DAO can only nominate those who satisfy the staking prerequisites. Upon meeting these requirements, the voters can be ensured that the delegated Managers have significant stake to perform their designated tasks.

Staking Rights and Rewards

Token holders who partake in staking stand to gain rewards, claimable at their convenience, directly to their accounts. Beyond this, staking also grants voting rights, with voting power directly proportional to the quantity staked. Notably, when stakers cast their votes in proposals, they pledge certain staked tokens to be locked in place, remaining so until the conclusion of the proposal, thus ensuring a fair and committed voting process. During this period, the pledged tokens cannot be unstaked.

Staking Rights and Committee Nominations

Token holders can qualify a nomination for Committee Manager roles by staking a predefined quantity of tokens, at the DAO’s creation time, which will be permanently locked. Upon the approval of the committee set-up proposal, the smart contract ensures a permanent lock on the staked tokens, while earning the Committee Managers emission rewards. However, in scenarios where the committee set-up proposal does not pass voting, or that the stakers later are removed from the committee duty, their Manager Pledge can be unlocked, allowing them to unstake at their discretion.

Advantages of the Stake Engine Mechanism

• Shareholder-like responsibility: Staking requires participants in governance to lock a certain quantity of tokens as proof of ownership, which is both an economic commitment representing responsibility and a way of strengthening the DAO’s defense against Sybil attack and other malicious activities.

• Promoting Token Holding and Long-Term Investments: Through staking, token holders can lock their tokens in smart contracts to participate in their DAO’s consensus building. In return, holders have the opportunity to receive rewards. This incentive mechanism encourages long-term token holding, reduces short-term speculative behavior, and establishes a stable support base for the project.

• Building a Loyal Community: Staking encourages active participation and contributions from token holders, fostering the formation and development of a community. Holders establish closer connections with the project by participating in staking, enhancing community cohesion and shared interests, and supporting the project’s long-term development.

Ink Finance, as a web3 financial SAAS, pursues the principles of transparency, flexibility, rigor, competence, and credit. Governance and management are what makes the pursuit possible. The launch of Stake Engine is a significant update to our product.

About Ink Finance Ink Finance is an on-demand financial management SaaS, enabling on-chain organizations to build effective operation structure and perform best-practice financial management. Motto: Finance is built on credit, and credit comes from competence.

Learn more about Ink Finance and what we’re building: Telegram | Announcement | Discord | Twitter |Website| Medium | Youtube | Linkedin | Mirror | CMC

Ink Finance has unveiled its Non-Token Governance on Testnet amid these evolving dynamics. This novel system offers the project modifiable governance mechanisms tailored to its different stages. From Non-Token/Badge Governance to Token Governance and a hybrid model merging tokens and badges, these options aim to sustain the project’s momentum and cultivate an environment that promotes innovation.

How does the Non-Token Governance work

The number of available voting methods often restricts most on-chain governance contracts. Traditional governance models, driven solely by economic or financial power, need to be revised and be more robust, with a tendency to veer towards monopolistic control, thereby undermining the essence of fair governance. To address these concerns, Ink Finance has introduced an innovative solution — the Non-Token Governance, also known as the Badge mechanism, to cater to the diverse interests of its community members.

The Non-Token Governance enables projects to tailor specific badge parameters to their needs. These parameters can encompass many considerations, from creating or importing badges to defining and naming badges and even determining voting rights. It extends to include the number of available voting options, the method of vote calculation, and the integration and specification of time locks.

This governance model ushers in an era of fair representation by empowering DAOs to allocate a pre-defined number of badges to members based on their contributions. The system awards members specific rights, voting power, governance authority, and rewards, ensuring a seamless alignment.

Advantages of Non-Token Governance

1. Flexibility and Innovation: This model thrives on its capacity to adapt to various governance needs and developmental stages. It fosters a culture of innovative thinking and encourages experimental decision-making, thereby propelling the project’s progress and evolution.

2. Fairness: Unlike traditional governance models that rely on token holdings, Non-Token Governance anchors itself on participants’ reputations, contributions, and expertise. This approach actively promotes a more equitable and democratic governance process, sidestepping the pitfalls of wealth concentration and excessive influence from a few token holders on the decision-making process.

3. Decentralization: The model is firmly rooted in community participation and collaboration, offering every member a fair chance to voice their opinions and contribute to decision-making. This decentralized approach curbs power centralization and manipulation risks, bolstering community autonomy and transparency.

4. Long-Term Orientation: Unlike token based governance models, which can be swayed by short-term price fluctuations, Non-Token Governance prioritizes long-term interests and sustainable development. Its decision-making process focuses on the project’s long-term vision, development strategies, and the broader interests of the community, particularly when the utilities of a generic token have not been well defined.

5. Anti-noise: Non-Token Governance reduces dependence on token prices and market fluctuations, thereby reducing noises in governance decisions. This model can better isolate community activities and the uncertainty of the crypto market, in order to fully release the real value of the communities.

Within the dynamic ecosystem of cryptocurrencies, it’s often more efficient and flexible to leverage the community economy with NFTs or merit scores, using these values to propel the ecosystem’s growth. Since it is inherently difficult for “utility tokens” to capture the infinite possibilities of value generation, the complexity can make them unsuitable as governance tools.

To summarize, the Non-Token Governance model anchors off of a governance mechanism that emphasizes fairness, decentralization, and long-term orientation. By adopting this model, the community can focus on autonomy with participation. This model provides distinct advantages for a project’s sustainable development, encouraging value generation from and for the community, rather than short-term speculation of token price fluctuations. The Non-Token Governance provides a critical alternative to token-based governance schema, a resilient, inclusive, and democratic approach to the governance in the rapidly evolving world of Web3.

About Ink Finance Ink Finance is an on-demand financial management SaaS, enabling on-chain organizations to build effective operation structure and perform best-practice financial management. Motto: Finance is built on credit, and credit comes from competence.

Learn more about Ink Finance and what we’re building: Telegram | Announcement | Discord | Twitter |Website| Medium | Youtube | Linkedin | Mirror | CMC

Our rockstar dev team completed the development of key product features such as investment management, staking engine, and No Token Governance. Most of our platform’s functionalities now stand completed, marking a key milestone in the Ink Finance journey to reshaping DeFi!

We’ve also made considerable strides in BD expansion, with some of our partners publicly announcing their collaborations with Ink Finance.

Let’s dive into the exciting achievements that made May a month to remember!

Forging New Frontiers In Partnership with AlterVerse

Ink Finance is excited to announce our strategic partnership with AlterVerse, a pioneer in Metaverse gaming. This epic collaboration ushers in a new era of Metaverse financing, seamlessly merging DeFi and the dynamic Metaverse ecosystem.

We’re establishing a financial booth in AlterVerse’s immersive Metaverse, designed to facilitate easy in-game token transactions between lenders and borrowers. Ensuring smooth operations within the gaming ecosystem, our token QUILL steps up as a turnkey utility, activating vital features within the gaming ecosystem.

This partnership represents a significant leap towards synthesizing DeFi and the Metaverse, blending the boundaries between virtual, DeFi, and real-world finance. We’re committed to exploring and innovating at the intersection of finance and gaming, and we’re thrilled to have you join us on this journey.

Read more about the partnership｜Click to view the virtual booth of Ink Finance

Community Event

“Know your investment QUIZ” Event: Increase Knowledge & Earn Rewards

Inker DAO has launched a prize-filled campaign, “Know Your Investment QUIZ,” to enhance the communities understanding of secure and transparent investment practices. The campaign is a fantastic opportunity for the community to learn the ropes of efficient and safe investing, familiarize themselves with the workings of Ink Finance’s investment tools, and explore our powerful innovations. Nearly 100 community members actively participated in the event. Recognizing that the security of assets and the assurance of investment returns are fundamental concerns for our users, this event catered to these needs by elucidating the following points:

• First, FUNDS operate within a stringent workflow, monitored not just by a dedicated risk controller but also by users on the blockchain, providing real-time oversight.

• Secondly, Ink Finance grants users access to the historical investment returns of all funds. This transparency enables users to cherry-pick quality funds, potentially maximizing investment returns.

We are excited to see many more participate in secure and informed investing with Ink Finance!

Talk to Team

The highly-anticipated ‘Talk to Team’ event hosted by Ink Finance was a resounding success, providing a unique platform for our community to engage directly with our core team.

Our BD and Marketing Partner, Ben Jones, joined the session, offering detailed insights into the most pressing user concerns. This productive dialogue allowed for an in-depth exploration of product features, security measures, unique advantages, strategies for community engagement, and our marketing roadmap.

The questions and discussions primarily centered around the following pivotal aspects:

• INK Funding status: Ink Finance has completed two funding phases, with an $80 million valuation and Series B funding in motion.

• Defining Comprehensive Security: Stringent internal testing, external audits, and regulatory compliance ensure platform security.

• Benefits & Accessibility for Different Users: The platform caters to crypto newcomers and professional users with a versatile interface and features.

• How Voting Power Works: Voting power links to INK token holdings or stakes. Future enhancements could reward participation and long-term staking.

• QUILL & Investment Strategies for Investors: Investors stand to benefit from potential QUILL token value increases, staking rewards, and token utility.

• Mobile App Suggestions from the community for INK to make an official mobile app.

The ‘Talk to Team’ event is a testament to our vibrant community culture and INK’s steadfast commitment to transparency, user engagement, and ceaseless innovation.

We are incredibly grateful for our exceptional community’s enthusiastic participation and insightful inquiries, as their keen interest and anticipation for future initiatives are evident.

Discover more here

Blog Post

Trading Functions of Investment Management live on testnets

Ink Finance’s Trading Functions offer a meticulously structured operational system with multi-tier management and a rigorous workflow. The fund trading process, managed by investment and risk managers, unfolds in five sequential stages:

1. Asset introduction

2. Asset approval

3. Trade initiation

4. Trade approval &

5. Trade commitment.

This structured trading system bolsters trading efficiency and accuracy and fortifies risk management. By offering unparalleled transparency and adhering to regulatory guidelines, it ensures compliance across the board. Moreover, it paves the way for the effective implementation of Real World Assets (RWA), amplifying the overall performance and scope of Ink Finance.

Discover more here

How Ink Finance is empowering Real World Asset (RWA)

Ink Finance is paving the way for integrating Real World Assets (RWA) into the decentralized financial ecosystem. Acting as a bridge between the traditional Web2 and the innovative Web3, RWAs have the potential to unlock significant opportunities and breathe new life into the financial markets and the real economy.

Ink Finance, a vanguard of Web3 financial infrastructure, has undertaken extensive research and development in this realm. A noteworthy accomplishment is creating our proprietary on-chain tokenization module, InkEnvelope.

InkEnvelope transforms offline assets into on-chain tokens, following three key steps:

1. Select the asset type for tokenization and the number of tokens.

2. Describing the assets/Asset identification.

3. Linking to external operational systems.

The tokens are tied directly to real-world assets, validating their authenticity. Asset trading exchanges can audit the tokenized assets, boosting user confidence in trading.

Product Development

Investment Functions live on Testnet

In our latest update, we are excited to announce that the trading features of our investment management system are now live on testnets. This milestone marks a significant step in providing a seamless and efficient funds operation experience. Our team has been dedicated to refining the user interface, streamlining the trading process, and implementing robust risk management protocols.

Investment funds have a three-phase life cycle:

1. Setup & Raising,

2. Operation, and

3. Dissolution.

When the fund enters the operational trading phase, the fund manager undertakes a sequence of steps:

1. Introducing assets

2. Approving assets

3. Initiating trades

4. Approving trades

5. Executing transactions

This sequence gives you greater control over your funds, enabling you to swiftly and securely seize and capitalize on market opportunities.

We have also rolled out advanced asset introduction types and an on-chain asset tokenization system. This system facilitates the blockchain’s comprehensive standard representation of Real World Assets (RWA).

Discover more: here

No Token Governance

The No-Token Governance module is complete! This module enables a DAO to mint or import badges with customizable parameters to specific governance requirements. These parameters include the number of badges, board settings, number of public voting wallets, individual votes, voting modes, and execution timelines.

Our No-Token Governance solution addresses daily operational needs and long-term governance, incorporating fairness, decentralization, risk resilience, and flexibility. This innovative governance mechanism fosters community autonomy and participation, boosting sustainable project development and significantly benefiting the community.

Ink Finance’s Staking Engine

We’re thrilled to announce that our rockstar dev team has successfully completed the Staking Engine development, a crucial element of Ink Finance. This monumental achievement symbolizes a massive leap forward, transforming Ink Finance into a highly efficient powerhouse akin to a supercar, taking things to the next level, & revving up to deliver unmatched performance.

Our Staking Engine offers DAOs two options: creating a new staking pool or sharing an existing one. It empowers DAOs to set token emission rates and determine parameters. Token holders participating in staking reap rewards and gain voting rights by pledging stakes or meeting qualified manager requirements.

The Staking Engine yields benefits, including enhanced network security, increased holder participation, robust governance capabilities, liquidity, and community development. Its role in fostering the growth and success of blockchain projects is invaluable. Embark on the journey with Ink Finance — where innovation meets opportunity. Thank you for learning about our recent breakthrough in May. Our rockstar team remains dedicated to working hard and advancing our platform. To learn more, please don’t hesitate to contact us.

Read more： Ink Finance Biweekly Report # 23

About Ink Finance Ink Finance is an on-demand financial management SaaS, enabling on-chain organizations to build effective operation structure and perform best-practice financial management. Motto: Finance is built on credit, and credit comes from competence.

Learn more about Ink Finance and what we’re building: Telegram | Announcement | Discord | Twitter |Website| Medium | Youtube | Linkedin | Mirror | CMC

Ink Finance, from the outset, embodies a central objective: to tokenize RWAs with complete transparency and off-chain clearing ability. To accomplish this, we developed the InkEnvelope construct, specifically engineered to convert any asset into a token format. Subsequent technical development focused on the supporting elements such as credit, clearing mechanism, and accountability into the RWA governance system.

INK has successfully deployed this novel feature on several EVM-compatible testnets, marking a significant step towards an integrated and versatile credit-focused DeFi infrastructure.

Ink Finance, a pioneering Web3 Financial Software as a Service (SaaS), has always been at the forefront of adopting Real-World Assets (RWA) to advance Decentralized Finance (DeFi). The tokenization of RWAs — assets in the tangible real world — has been gaining prominence since the beginning of blockchain technology, and Ink Finance has dedicated extensive research to building and standardizing this process.

Significant developments in the DeFi space have recently brought RWAs into the spotlight. Announcements like Binance becoming a node operator for Polymesh, a layer 1 blockchain designed specifically for regulated assets such as security tokens, and Maple Finance launching a US treasury bond pool underscore the escalating importance of RWAs. These assets, which include real estate, art, bonds, and private equity, are now seen as the next growth engine for DeFi.

Ink Finance’s core design objective from its inception was to enable the transparent and efficient tokenization of RWAs. This commitment is evident in our proprietary INK Envelope technology, which transforms any asset into a token format, a feature successfully deployed across Ethereum Virtual Machine (EVM)-compatible testnets.

A central part of INK’s vision is to advance blockchain technology to serve the real-world economy and society at large, by introducing credit-based DeFi. The goal is to create a resilient financial system on Web3, capable of withstanding market challenges and serving all Web3 projects and decentralized organizations.

A key attribute of Ink Finance is its ability to establish on-chain competence and financial credit, thereby lowering the entry barrier to Web3. Ink Finance helps establish

1. On-chain competence and financial credit.

2. Lowers the threshold of entering Web3.

3. Links Web2, real-world, and Web3.

4. Connects projects and users.

As Web3’s financial infrastructure, INK allows users to create on-chain organization structures with ease, establish their treasuries, and adopt workflows to execute critical financial decisions on-chain.

Moreover, it provides the facilities to issue aggregate investment fund products and bespoke financing products. introduce and wrap assets that are unavailable to the local blockchains. Although the functions are comprehensive, the “plug and play” configuration method does not require users to adopt all of them; they only choose the useful modules according to their own missions.

InkEnvelope supports flexible customization, enabling enforced processes of transparent governance to wrap any assets into tokens.

InkEnvelope, the backbone of Ink Finance’s RWA tokenization, is purpose-built to cater to equity/rights asset class, such as real estate and arts, as well as the fixed-income asset class, including invoices, receivables, consumer credits, and debt claims, etc.

InkEnvelope simplifies the complexity of heterogeneous assets, with a unified asset description, a realistic & tangible clearing method, and a brand-new programmable layer to seamlessly connect to the world of DeFi applications.

The InkEnvelope is formed and issued through the following steps:

1. Wrap critical asset information into an InkEnvelope, such as insurance, guarantee, valuation auditing, licensing, disposal rights, physical or cross-chain clearing authorities.

2. Encode details of the entire asset introduction and approval process into InkEnvelope, including the proposal and approval rules.

3. Publish the packaged assets on Ink Finance platform, through any organized fund management entity, or any entity seeking financing.

4. Investors make investments to the RWA through these entities, or through any established DeFi protocols that adopt the InkEnvelope assets.

5. Investors claim distributions and redeem investment returns.

In the aforementioned entities, Risk managers, auditors, administrators, and investment managers, all elected through decentralized voting, will manage the process of asset packaging, asset issuance, and asset transactions. All managers must be held to certain standards determined by the community, including pledging substantial governance tokens, being verified for legal identities or professional licenses, or both.

Ink Finance is committed to RWAs with an unwavering determination

The goal is to foster a more inclusive and sustainable financial paradigm. We are laser-focused on equipping investors and borrowers with a convenient, uniformed, and secure environment primed for efficient and prudent liquidity. The platform’s innovative underwriting and risk management methodologies are dedicated to security, transparency, and prudent investments.

Riding on the irreversible trend of using digitalization and decentralization to empower real economy, Ink Finance emerges as a pioneering leader in RWA tokenization. By injecting a vibrant blend of innovation and deep insight of credit based finance into the market, we aim to cultivate an environment where diverse and secure assets, as well as abundant financing opportunities thrive. We continuously dedicate massive efforts to promoting the digitalization of RWAs and building a more inclusive and sustainable financial system.

“Build on-chain Competence & Financial Credit.” The digitalization of RWA is one concrete realization of Ink Finance’s slogan.

About Ink Finance Ink Finance is an on-demand financial management SaaS, enabling on-chain organizations to build effective operation structure and perform best-practice financial management. Motto: Finance is built on credit, and credit comes from competence.

Learn more about Ink Finance and what we’re building: Telegram | Announcement | Discord | Twitter Website | Medium | Youtube | Linkedin | Mirror | CMC

Multi-Channel Social Verification Support: Twitter, Discord, Slack, Telegram, etc.

Ink Finance’s Social Verification feature enables integration with multiple communication channels, including Twitter, Discord, Slack, and Telegram, to bolster trust and security within its infrastructure. All individuals seeking DAO management roles must undergo Social Verification before appointment or nomination for enhanced credibility. A Social Identity is then associated with a wallet address and displayed on the user’s profile. To prevent fraudulent activity, each wallet address on the blockchain can only be linked to a single social media account. Ink Finance currently offers Twitter verification, with plans to expand support to additional social media platforms. This ongoing expansion aims to cater to various DAO management structures’ diverse and flexible needs.

Legal Verification: Collaborating with Top Third-Party Providers for Identity Compliance

Ink Finance leverages the next-generation compliance identity verification platform, Astra Protocol, to provide robust identity compliance verification for DAO managers and investors. This collaboration enables DAOs, primarily in financial sectors, to expand their global presence while adhering to compliance conditions and safeguarding the ecosystem against contamination, ultimately protecting the entire community.

Astra Protocol delivers financial regulatory standards from over 150 countries and incorporates more than 300 sanctions and watchlists into the cryptocurrency domain without compromising anonymity. By partnering with Astra, Ink Finance empowers DAOs to ease the compliance and regulatory burden associated with financial growth, streamlining the process for traditional institutions to venture into the blockchain arena. Through establishing a comprehensive operational framework, DAOs can mitigate risks, such as illegal financing or Ponzi schemes, and ensure a safer business environment within the blockchain field. By mandating user identity verification and adherence to corresponding requirements for participation in DAO-initiated financial activities, global compliance standards are met, fostering sustainable growth and development.

Ink Finance has integrated Astra’s verification process template into its product page with the management architecture. Once the Mainnet is launched, DAO users can conveniently access the verification page and complete verification directly.

Biometric Verification: Partnering with Humanode for Enhanced DAO Security and Governance Integrity

Ink Finance collaborates with Humanode to implement biometric identity verification, ensuring that DAO members are free of duplicate identities, bots, or multiple accounts susceptible to exploitation. Using Humanode’s technology, the platform eliminates the possibility of witch attacks and allows each DAO member to concentrate on their tasks and objectives. This feature is currently in the integration phase and will be released soon.

As a blockchain-based financial management infrastructure, Ink Finance works closely with top-tier third-party providers to incorporate flexible and diverse identity verification methods within the foundational operational framework. This collaborative approach bolsters the security and integrity of DAO self-governance and equips the platform to address the inevitable challenges of forthcoming financial regulation.

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter Website | Medium | Youtube | Linkedin | Mirror | CMC

“All functions in this release aim to establish a best practice standard of collaborative investment on Web3. Combining the rigor of professional management and the flexibility of DAO, any investment-focused decentralized organization can now organize and operate in a Web3 environment to launch, fundraise, manage, and clear investment fund products. Such a standardized model puts safety, transparency, and compliance at the forefront of investment management, delivering the ultimate investor protection.”

The demand for collaborative investment in Web3 is continuously growing. Either from the regulatory angle or by the missions of the DAOs themselves, the industry needs a safe, professional, pragmatic, and flexible standard to support the management and operation of investment products. Ink Finance is proud to announce the release of Investment Management, marking another important milestone in the progress of the entire project.

Ink Finance enables any community to quickly and safely start an investment group in the form of a DAO. It also opens the door to the Web3 world for the traditional asset management industry with the easiest implementation.

Investment Management is one of the core “pluggable” components of the Ink Finance platform, seamlessly integrated into the overall governance framework. From the configuration of the Investment Committee to the actual investment activities, risk management, liquidity management, compliance, auditing, allocation, and liquidation, it has formed a standard of fund operations, which will be briefly introduced here.

The Investment Committee

Before a DAO launches any fund product, the primary focus is to set up fund managers within the organization, which is the cornerstone to ensure its healthy development. Instead of not knowing how to trace and who should be held accountable after a problem occurs, identity verification, clear responsibilities, and clear processes shall be well defined from the very beginning. The setting of this group of managers is determined by the DAO according to its own mission and voted by its members. Smart contracts execute the decision-making process and resolutions on the blockchain.

Who are in the Investment Committee

• Fund Administrator is responsible for creating, starting, and dissolving funds.

• Fund Manager is responsible for carrying out the investment activities of funds.

• Fund Risk Manager is responsible for conducting risk reviews on transactions made by the Fund Managers to ensure that each transaction complies with the fund’s operating rules. If the transaction does not comply, the Risk Managers have the right to reject it, and the transaction will not occur.

• Fund Liquidator is responsible for liquidating and distributing funds when risk triggers are set off or when unpredictable risk events occur.

• Fund Auditor is responsible for auditing the transaction price and the price of the assets held in the funds, as well as the completeness of off-chain assets, to ensure that the transacted price and presented price of assets are reasonable, to detect cherry-picking or other loopholes.

These five positions with different responsibilities create the checks and balances among each other, improving fund operations' security, transparency, and traceability to the highest standard.

Set up Fund — Launch & Start Fund

Fund Structure Highlight: 3 options for fund issuance

• After fund investors subscribe, the information is recorded on-chain. Investors only need to wait for the fund to distribute income or the termination of fund operation and receive the income and repayment directly with their wallets. Such fund products do not allow investors to transfer investment shares.

• Allow Fund to be Tokenized Tokenization of fund shares is allowed, that is, when users’ investment subscriptions are completed, they will also get token allocation with a 1:1 mapping to their shares in the fund (the DAO sets the token name). Tokenization means that investors can trade or transfer fund shares after the subscription is over, thus providing them with flexible liquidity. They do not need to wait until the fund's termination to regain liquidity and can transfer at any time during the fund's operation to exit. Any fund token holder can directly redeem with the DAO when the fund is terminated.

• Allow Exchange for Portfolio Holding The holders of fund shares can exchange the assets held in the fund according to their shares, provided that the assets held in the fund can be fractionalized. Such a construct supports true ETFs.

Intermittent Distribution

During the operation of a fund product, the Fund Manager can distribute irregular incomes to investors according to the investment situation, and the investors can access the DAO operation page to collect them. The smart contract automatically calculates the amount that can be claimed.

The above different forms of fund products provide investors with flexible use cases to meet very diversified needs.

Portfolio Parameters

To support the description and clearing of off-chain assets, Crypto assets on the local blockchain（FT & NFT）, Crypto assets on other blockchains（FT & NFT), and Real-world assets off blockchains

The setting of these parameters makes the rules of investment management concrete and transparent. To improve the transparency and enforceability of risk control and establishes safety protection mechanisms for investors in the system.

Compliance Supports Dual Verifications

Financial operation with compliance has always been a pain point of decentralized finance, and it will be the cornerstone of the steady development of this field in the future. Ink Finance provides the tools of regulatory compliance that funds must meet to operate, which can be used by DAOs that focus on asset management.

Biometric Identity and/or Legal Identity Verification. Once these tools are activated in the Compliance section, the personnel involved in the management and the users involved in the investment must meet the condition of identity verification before they can manage or invest. The requirements for biometric or legal verification are entirely adopted and enforced by the organization according to its need.

Manager Assignment

After the DAO has set up all managers at the Committee level, it can launch multiple “themed” fund products simultaneously and assign different managers to manage these funds, including the Fund Managers and Risk Managers. Each fund product operates independently without breaking away from the main body of the DAO.

Fees

The collection and distribution of management fees are coded into the contract and executed on-chain. The fixed management fee is automatically deducted when fundraising is successful. When the fund ends its operations, the Performance Fee will be calculated and deducted from the contract. If the fundraising fails, no fees will be deducted, and investors can redeem all investment subscriptions on the DAO operation page.

Dissolving Fund

The Fund Administrator will shut down investment activities and conduct liquidation when the fund operation period expires. Afterward, Investors can redeem their investments based on wallet addresses or their fund share tokens.

Future Release

Introduce Asset, Initiate Trade, Approve Asset, Approve Trade, Audit, Liquidate. These are the transparent operations performed by the fund managers during the process of a fund. The basic steps are requests, approval, and execution. This collection of functions will be released very soon.

How to set up Fund: Check here to start your Fund.

The release of Ink Finance’s Investment Management plugin takes blockchain-based collaborative investment to a whole new level. Ink Finance will not stop reaching its mission and will continue to deliver groundbreaking DeFi solutions, enabling investors to experience a safer and more efficient DeFi.

Stay tuned for more news and updates from Ink Finance!

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter Website | Medium | Youtube | Linkedin | Mirror | CMC

INK mainly supports governance rights represented by a DAO’s own meta token, based on the principle of “having skin in the game”. Not only managers are required to stake a minimum amount of DAO tokens, public votes are expressed by staked tokens as well.

The INKStakingEngine is provided by INK for any DAO creator to simply plug their emission tokens into, with many customizable reward and penalty schemes for different staking terms, allowing DAOs to fit to their own tokenomics. The requirement of stake-to-vote not only is an effective mechanism guarding against Sybil attacks, and assigning clear governance utility to the meta token, it also happens to produce the effect of rewarding participation in the governance process, which typically more than offsets any gas cost spent on voting.

INK fully recognizes that governance by sheer stakeholding power is a crude and imperfect mechanism, and therefore, it devises a compensatory or offsetting mechanism — the badge mechanism, to let community members express governance rights via non-stakeholding contributions. Badges are typically issued by the sub DAOs of a large ecosystem where members are focused on narrower missions that should not be disrupted by the sheer size of the stakeholders of the meta token. DAOs can effectively balance the power of governance by configuring the weights of badges in lieu of stake-to-vote.

DAOs that support the badges can use them to implement member profiles in the organization as well, by standardizing their behavioral data transparently into a form of credit value similar to that on the Web2 fintech platforms. Full conversion of the badges into standardized SBTs (Soulbound Tokens) will be provided when such a standard is established in the industry.

Operationally, DAOs should have issued their own tokens on their native blockchains. INK provides a no-code interface for the DAO creator to

• Supply the tokens as staking reward

• Set the emission curve during the emission period

• Set different lockup terms that have different rewards and governance rights

• Penalty levels for breaking the lockups

Fiscal and Financial Management

As the core of INK’s powerful financial capabilities, the Unified Custodian Vault, or UCV, is the smart asset holder capable of safekeeping any form of assets. Any DAO can set up multiple UCVs within its organization to isolate assets or liabilities for different purposes, which have different operational authorities administered by different duty-holding managers.

On asset mapping and creation, INK’s customizability and flexibility relies on InkEnvelope’s ability to wrap any asset or financial product into a single token. The power of InkEnvelope goes far beyond just minting. It encompasses critical information associated with an asset, such as insurance, appraisal, commercial licensing, etc, all assured by the integrity of the governance process.

Tokens wrapped with InkEnvelope can be non-fungible (NFT) or fungible (FT), compatible with any mainstream wallet and DeFi facilities. It can be used as a DAO’s treasury asset, collateral for borrowing, or as part of an investment portfolio, gaining the benefits of uniformity and liquidity on any blockchain facility.

InkEnvelope removes the opaque nature of generic tokens with the bonded clearing authorities and full descriptive power for on-chain processing, while preserving their on-chain tradability and descriptivity. It paves the way for the credit-based DeFi regime, where selling generic “shitcoin” for fundraising will be the past.

UCV and InkEnvelope are the underlying technical bedrock of all fiscal and financial functions on the INK platform. With them, INK

1. Supports independent Treasury, Investment, and Funding operations within a large ecosystem;

2. Allows each Committee to have its internal procedure regarding financial operations, in the form of intra-committee setup-and-approval according to the appointed roles, and executed on-chain;

3. Supports the Treasury, Investment, Community, and Funding operations with DAO-to-DAO transactions between vaults, periodic automatic payments, and batched one-time payments, all secured with contract-based multi-signing processes. Various income or revenue categorization, as well as their audit is supported, which provides a clear asset deposit interface.

4. Provides highly unified operational convenience, utilizing the same set of underlying technologies to support completely different business purposes. The difference between all pluggable applications on the INK platform mainly lies in the usage purpose of the managed assets, but UCV makes INK’s plug-and-play architecture very easy to implement.

5. Supports regulatory compliant investment operations, including fund administration, asset adoption, risk management, and clearing functionalities, in addition to all the physical operations applicable to UCV. The process involves more management roles but follows the exact same internal setup-approval protocol that is tailored to regulation compliance.

Connecting DAOs to the Regulated Financial Systems

Whether a DAO is an emerging venture capital manager, asset management consortium, a NFT-rich metaverse, a decentralized Web3 protocol, it is likely to be in need of raising funds from legitimate investors around the world (including accredited investors in U.S.); the raised proceeds will be deployed to proper usage, and distribution of the returns will be made to the investors. All of these should be carried by smart contracts on a blockchain to achieve transparency and regulation compatibility.

INK aims to meet such demand by integrating with regulated financing platforms, including but not limited to companies such as Republic Capital, HKbitEx, Draper Dragon, and DigiFT. The recent fallout of FTX and other major centralized crypto financing firms pushes crypto regulation to the forefront of the industry. No one should have any illusions about avoiding regulation, particularly for organizations that want to touch investors’ funds. INK platform has the full capacity, through its professionally built, highly adaptive and flexible plug-and-play infrastructure, to embrace the regulated on-chain finance.

For instance, the DAO’s main treasury vault is used to store the raised capital, meta token allocations, and operational revenues, with the appointed Treasury Managers in charge of its operations. These managers are unlikely to be required by regulations, but they may be required to possess certain qualities required by the institutional investors to detect “rugpulls” and misappropriation. Meanwhile, the DAO’s Investment Committee can manage numerous other UCVs, each created for a different investment fund with separately appointed Investment Managers managing them. These managers are very likely to be required to hold particular licenses, and INK provides the necessary tools for the DAO, its members, and regulators to verify them.

To continue reading, please click: True Convenience of “Plug-and-Play” — Ink Finance: For DAOs That Are More Than Social Groups (part4.)

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter | Website | Medium | Youtube | Linkedin

However, the hastily and sloppily designed DAOs of the past pose an existential threat to the future role of DAOs in decentralized digital finance. Fraught with plutocratic governance schemes, Sybil-infested incentive structures, and unaudited smart contract logic, past DAO failures have caused hundreds of millions in stolen funds. Integrity issues aside, the lack of comprehensive financial engineering capability further limits the potential and scalability of such DAOs, forcing them to become fractured entities only able to do limited business by practical means.

Ink Finance will establish a gold standard of financial DAO construction and operation that will serve the best-decentralized organizations, including emerging venture capital and crypto managers and syndicate groups, Web3 protocols and applications, and even traditional institutions such as art auction houses, Fortune 500 corporations, and mainstream financial firms. With its highly customizable modules of DAO configuration and powerful financial management tools, INK Finance will continuously iterate with technological, financial, and regulatory bodies to properly serve a diverse clientele who strives to adapt and thrive in the Web3 era.

INK’s Key Objectives:

Modulated DAO Setup and Financial Product Factory

INK’s out-of-the-box configuration modules are designed for aspiring financial DAOs to customize their operations and the financial products they offer. The company’s long-term goal is to provide a no-code interface for organizations to seamlessly set up, operate, and iterate, which will allow them to effectively adopt the explosive growth of assets generated by new ecosystems, especially in a very dynamic regulatory environment.

Sybil-Resistant Governance and Cross-chain Reputations

Ink Finance aims to be a multi-chain facility that allows any DAO to set itself up once and do business everywhere, with high capital efficiency and low operational overhead. This means that any DAO will be able to establish its cross-chain financial reputation with transparency, competence, and fairness.

The validity of each DAO member in a decentralized and cross-chain setting lies at the core of its reputation. INK Finance tackles the challenge of identity verification and Sybil’s resistance by utilizing the decentralized facilities offered by Aikon and Humanode, respectively.

Aikon’s decentralized identity platform enables secure login and control over the users’ data while keeping it private. It can be employed to maintain the connection between legal identity and its decentralized role across all deployed blockchains.

To ensure that a critical member of an INK DAO who is signing an audit or voting on resolutions is the same person who created the account, INK utilizes a cryptobiometric solution developed by Humanode. It allows biometric data to stay private both during computing and storage, sending only ZKP (Zero-Knowledge Proofs) to decentralized identity solutions like Aikon to prove that it’s not a hacker trying to use an account. In addition, the Humanode biometric protocol utilizes liveness detection to ensure that any critical role in an INK DAO is assigned to a real human and not another fake account.

Access to Legitimate Fundraising Platforms

Whether it be emerging venture capital managers or syndicates, DAO-governed Web3 protocols, or art auction houses, DAOs have an immediate need to fundraise from investors around the world (including US-accredited investors) and subsequently distribute those funds through smart contracts built into DAO. INK Finance aims to meet this need by integrating with fundraising platforms, including but not limited to companies such as Republic Crypto.

In the future, as the popularity of Regulation Crowdfunding (Reg CF) grows, Ink Finance will explore integrations with registered crowdfunding portals in order to host registered token offerings.

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter Website | Medium | Youtube | Linkedin

From an IT perspective, Ink Finance is a typical BaaS, or Blockchain as a Service, platform. Its no-code and one-stop facilities allow on-chain organizations to fulfill the needs of organizational management, decision-making, fiscal control, and financial services throughout all aspects of their lifecycle, freeing them from the cumbersome burden of seeking and assembling different dApps, which is not only difficult but also vulnerable. The following paragraphs will go over some of its key features and advantages.

The Integrity and Scalability of On-chain Execution

As can be seen in the previous discussion, INK aims to provide an integrated operating framework in which the loopholes between decision making and the execution of the decisions can be closed.

Obviously, not all decisions in an organization can be executed on-chain, but to the extent that they can, particularly in the area of fiscal and financial management, INK will make sure that DAOs on the platform can on-chain execute the results of all critical financial decisions (such as treasury creation and revenue audit), thereby giving financial governance true integrity, traceability, and accountability. The cumbersome and insecure process of DIY, which is typically done by manually putting together different incoherently developed dApp tools, shall be totally avoided.

Once the goal of governance integrity is set, the major design objective is to achieve scalability. Since each decision is based on the DAO’s self-defined proposing and voting process, INK has built in an expandable dictionary of proposal types with fully itemized metadata, with each item representing an article of a proposal. Also defined in the metadata of such proposals is the sequence of steps in an execution that can be recognized by a corresponding ExecutionManager, which will invoke the various related ExecutionAgent to go about executing. The security is guaranteed because no one can invoke any ExecutionAgent without the ExecutionManager explicitly “peeking” into the voting results and the itemized metadata, which are immutable records on-chain.

For example, when a Treasury Operator sets up a payment schedule, it is treated as if he has made an internal proposal that can only be voted by the Treasury Multi-signers. After the multi-signing, this schedule becomes a resolution with its unique ID on-chain, which is the only acceptable execution authority for the TreasuryPaymentAgent.

With such a resolution-to-execution regime, as long as INK keeps adding to the dictionary the definitions of on-chain executable proposals, and their associated sequential control flow definitions, the platform can rapidly deploy new solutions with the necessary scalability to support the growth of the entire DAO sector.

Organizational Structure on INK Platform

Taking a chapter from the history of corporate evolution, one can see that most DAOs today are at a fairly early stage, and this form of organization is still in the process of continuous practical evolution. It is very difficult for any organization to imagine that a set of fixed operating rules can be formulated in advance and deployed on a blockchain network that could ensure long-term effectiveness as the DAO continuously pivots and adapts.

Many DAO facilities derived from certain use case backgrounds have encountered bottlenecks when used across various collaboration modes, such as when their users are factioned into sub ecosystems or blocs in different countries and regions. These DAOs are forced to seek their own operational facilities, or to awkwardly assemble many different incoherently produced dApps (an independent multi-sig wallet, plus a generic proposing and voting protocol is a typical example).

Positioned as a platform to support sustainable evolution and growth, INK strives to be both comprehensive and flexible, while upholding the principle of integrity and decentralized transparency. Its effectiveness has been confirmed by many of its early customers with versatile business scenarios and operation modes.

• Formation of meta DAO and sub DAOs. This feature delivers the balance of hierarchical control, specialization, and autonomy, forming a flexible and customizable organizational structure to generate efficiency while preserving and maximizing the meta DAO value.

A meta DAO is like a controlling group or an umbrella company in the traditional world. It encompasses the brand recognition, and the top-level (or protocol level) development and resource management. The utility definition and the monetization scheme of the meta token falls into this category.

Sub DAOs are like subsidiaries of a controlling enterprise in the traditional sense. They are set up to carry specialized sub ecosystems that can represent regional or task-specific communities. For example, a sub DAO can be set up to focus on social and marketing, with its very specific governance, management, and incentivization rules reflecting its autonomy. Such a sub DAO may want to further allocate its resources and delegate tasks across several geographical sub sub DAOs. Other realistic sub DAO examples include the developer community for a protocol, an NFT investment community within a metaverse, a royalty financing community within a media IP DAO, etc.

INK’s powerful and flexible facilities enable the establishment of various administrative and economic relationships of the meta-to-sub DAOs and sub-to-sub DAOs, Even on-chain merger & acquisitions can be handled with elegance on the INK platform.

• Multiple Mechanisms for Sybil and Whale Resistance. Whether an ecosystem consists of one meta DAO or many sub DAOs, Sybil and “whale” resistance is always a challenge on blockchain.

INK’s first line of defense against Sybil attack is through a highly customizable staking mechanism. While assigning an explicit governance utility to a DAO’s meta token, it raises a substantial barrier of members using multiple wallets to recycle the same tokens in voting.

Meanwhile, INK integrates with the best decentralized biometric identity protocols (such as Humanode) to securely verify members while maintaining their privacy. This mechanism can be used to maintain the connection between users’ decentralized roles on all deployed blockchains and their biometric identities, ensuring a one-wallet-one-person governance basis. Other widely accepted DID solutions can also be added to INK’s technological stack for DAOs to choose from.

For transparency of critical roles, such as multi-signers, the auditors, or even normal members in KYC-required applications, INK integrates with the best decentralized legal identity protocols (such as Astra).

Regarding the governance rights at sub DAOs, it is critical for them to operate under various autonomous models that are resistant to the interference of the meta-level “whales”. INK has devised a badge mechanism (more on this in the later discussion) allowing sub DAOs to develop their own whale-mitigating schemes while still operating under the meta DAO’s banner.

• Formation of Committees and Manager Duties. This feature can be used by any DAO at any level of hierarchy.

A DAO on INK platform is always created with a Board (with its creator as the only Board Member), and a virtual Public Voting Committee (to act as a proxy for voting integrity). From there on, the Board can use the top-level proposing/voting process to establish, change, and abolish other Committees (see later discussions).

The top-level proposing process is also responsible for creating different managing duties that are assigned into the different committees. Duty is a DAO-level construct that must satisfy the DAO-defined identity verification requirement, and Duties are created on-chain by smart contract.

Each Duty-holding Manager is appointed to a specific position in a Committee. Intra-committee procedures, such as the setup and signing off of transfer schedule, are associated by code with the different Duties within the Committee in question.

• A rich set of DAO member functionalities.

Any member of a DAO can find any activities involving themselves that are initiated and processed by the different Committees in the DAO. The most common task of a DAO member is to participate in the public voting. When they vote, they are required to pledge the staked meta token of their DAO. It is up to their DAO to decide what kind of reward they will get from the staking, but the general setup assures the reward will be more than sufficient to cover the gas cost of casting votes.

Other exemplary activities include collecting rewards granted by the Community Board, buying and redeeming investment fund shares that are issued by the Investment Committee, or making donations to the DAO’s Treasury. Most of the critical activities and statistics regarding the DAO are all available for DAO members to browse and check.

To continue reading, please click: Meet the Needs of Governance, Economy, Finance & Regulations — Ink Finance: For DAOs That Are More Than Social Groups (part3.)

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter | Website | Medium | Youtube | Linkedin

• Organizational management — how is the house built

• Governance — how to make decisions

• Task Management — who can do what, and how to track and verify

• Fiscal tools for execution — payment, transfer, custody, audit, etc.

• Financial products — issuance & settlement, risk control, compliance

One can easily see that none of the solutions in the market offers a coherently integrated platform to address these very real and urgent demands. Some examples: The basic framework of Colony revolves around “domains” and account permissions; Gnosis Safe focuses on solving the multi-signing problem on Ethereum; Snapshot is committed to providing fair decision-making tools as proposing and voting; and CollabLand/Guild is a social management tool.

This means that a decentralized organization with non-trivial business goals, something that’s close to a real-world organization, is left to find a way by itself to assemble a collection of DAO management tools and to make them work together. The result is an awkward, inefficient, and often ineffective management structure that will greatly limit the future development and growth of the organization.

Although many tools do have certain ability to be integrated with, there is still the crucial issue of procedural control and the on-chain execution. For example, the high-level decision making flow and the actual execution of financial activities that are the consequence of the decision are very difficult to separate, particularly if the connection between the decision and the execution must be implemented on-chain. Gluing multiple dApps together doesn’t produce the efficiency or even the effectiveness, and it’s a frustrating and exploitable process.

Then comes the need, and the art, of the organizational management structure. Any non-trivial organization inevitably manages their business through separately focused divisions or subsidiaries. While blockchain and tokenization can truly offer many groundbreaking opportunities in this area, there is ironically very little effort made for DAOs to even match the effectiveness of the organizational structures that are often at core of traditional enterprises, let alone to replace them with new regimes on-chain. How functional units within a DAO are connected, and how the administrative or economic hierarchical relationships between meta-sub (or sub-sub) DAOs can be implemented on-chain is entirely unanswered.

Ink Finance (“INK”) is the only DAO tool in the current Web3 space that can fully integrate the organizational structure, the governance process, and the on-chain execution of the most consequential decisions, while assigning tangible economic meaning to a DAO’s meta token.

For decentralized organizations with very different missions from very different sectors, INK supports them with internal polymorphic organizational structures that can evolve and adapt as their businesses grow. The flexibility of hierarchical configuration, as well as the associated incentivisation and control schemes, allows for dynamic and versatile organizational efficiency.

INK’s fiscal and financial solutions, such as the treasury and portfolio management facilities embodies the best practice and professionalism, and they can be implemented in a true plug-and-play fashion, at each level of a hierarchical ecosystem.

If you just want to build a casual social group on-chain that handles simple fiscal tasks and does not deal with management at scale, there are indeed plenty of Web3 tools in the market to choose from. You may try to DIY by putting some of these systems together without being burdened by the resulting inefficiency. But if you want to build and operate a decentralized organization that is driven by real missions, carried by sustainable operations, and powered by strong financial capabilities, then take a deep and hard look at what Ink Finance offers.

To continue reading, please check: A BaaS Platform for DAOs —Ink Finance: For DAOs That Are More Than Social Groups (part2.)

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter | Website | Medium | Youtube | Linkedin

The key features that make INK stand out in a market with many competing DAO tools are:

• True plug-and-play configurability that allows DAOs to highly customize their own governance system according to their mission, scale, and the dynamic evolving process.

• DAOs can use INK to issue, risk manage, and settle or clear customized financial products, by establishing their on-chain reputation and financial competence. Holders of INK’s native token (QUILL) can sponsor other DAOs and their managers to support and share their growth, unlocking individual value with a governance utility.

• Fiscal and financial management is a core mandate of any DAO with reasonable operation scale. INK provides a complete set of professional on-chain solutions to help these DAOs build robust fiscal frameworks, and issue flexible financial products based on the assets they generate or manage, thereby obtaining the services provided by the wide range of decentralized financial facilities in the crypto world.

At present, INK has become the governance tool of choice for many benchmark DAOs, including emerging VCs and crypto managers and syndicates, Web3 protocols and applications, traditional institutions such as art auction houses, and even mainstream financial companies. In addition to the comprehensive fiscal and financial management tools, INK also enables DAOs to manage their members’ credit and merits, balancing the power of all stakeholders, establishing the competence and reputation across multiple blockchains.

QUILL — INK Finance’s Platform Token

As Invested Capital of Facility

Most of INK’s functions are designed to be used completely for free, including the core governance functions that allow DAOs to deploy a set of on-chain contracts through total customization. However, DAOs with long-term operational goals, especially those who need to use advanced financial tools, need to acquire and pledge QUILL tokens, which is equivalent to investing in facility resources. Unlike the typical Web2 SaaS pricing model that charges users based on subscription, QUILL is a form of resource or capital that any user DAO must invest into.

This scheme directly endows QUILL tokens as a form of working capital, while greatly reducing the risk of a DAO’s technology investment, because no matter whether a DAO can eventually achieve its business success, the infrastructure resource acquired in its early stage will still have capital value at exit. Compared with a DAO’s own investment to build a governance system with limited features, or the Web2 model of subscription fees, the advantage is obvious in encouraging DAOs to use INK, because of the total avoidance of the wasted construction investment or subscription fees.

The amount of staked QUILLs required to enjoy the advanced features is initially set at a minimum of 10,000, and will be determined by a fully transparent voting process by the INK DAO. The user DAO meanwhile obtains the right to participate in the governance of INK with the stake — INK’s DAO users are part of INK’s governance.

As an Investment Capital for Ecological Incubation

Although QUILL is positioned as a form of infrastructure resource to be invested in by DAOs, INK does not shut out those who may lack the start-up capital. If a DAO does not have enough funds to acquire QUILL to be staked to use the facilities, INK’s own decentralized DAO community will vote on whether to allow this DAO to “rent” the INK facilities with its own tokens. If such a proposal is accepted, these tokens will need to be accrued into the INK DAO Treasury according to a pre-set schedule.

This mechanism is the INK Sponsorship. In the above use case, it is equivalent to that the client DAO gets pledged QUILLs from the entire INK DAO community to sponsor it to use the INK facilities, and the latter receives the client DAO’s token as a rent in return. INK DAO can, by voting, swap these “rent” tokens in the secondary market for the QUILL tokens in circulation, and the QUILLs bought back will be deposited into the staking emission pool to support future operation. Since the total emission of the pool at any moment will last for a long period, placing the recycled QUILLs at the pool’s bottom effectively achieves a “soft destruction”, which forms a sure upward pressure on the price of QUILLs, benefiting all of its holders.

Under this mechanism, by accumulating other DAO tokens, the INK DAO Treasury becomes an incubator portfolio serving the entire community of QUILL holders. This is a fair and efficient economic system, and INK DAO (a tooling DAO) and its user DAOs can benefit from each other and grow together.

As Financial Service Fee Capture Tool

For INK services that generate financial liquidity or take custody of assets under management, the INK facility charges proportional fees according to the transaction volume (the issuance, settlement, and clearing) and the size of the assets under management. Fees are drawn from the cryptocurrencies (e.g. ETH or USDC) being handled in the above financial services. They are then swapped for QUILL tokens in circulation, and the QUILLs bought back will be deposited into the staking emission pool to support future operation. Since the total emission of the pool at any moment will last for a long period, placing the recycled tokens at the pool’s bottom effectively achieves a “soft destruction”, which forms an upward pressure on the price of QUILLs, benefiting all of its holders.

As Individual Sponsor’s Capital

In the case of sponsorship provided by the entire INK DAO community, as previously discussed, a DAO lacking upfront capital can “rent to use” the INK facility, but it must pass the voting of the INK DAO. To support a more vibrant and fully market-driven sponsorship scheme, INK also allows individual QUILL holders to provide sponsorship for DAOs and their key managing members. In this use case, in addition to receiving QUILL’s built-in staking rewards, the sponsors can share the revenue generated from the sponsored DAOs and their managers, on a negotiated basis. The sponsored DAO can vote to determine the income sharing ratio between the sponsor and the DAO, and such decisions are executed and enforced on-chain.

Read more: The QUILL Tokenomics — an In-depth Look at Ink Finance(2)

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter | Website | Medium | Youtube | Linkedin

In the governance process of the INK DAO itself, or that of those DAOs that directly use QUILL as a governance token, members gain management and voting rights by staking QUILL tokens. In this regard, all DAOs on the INK platform are not only its users but also its community members who can have a say on important governance issues.

QUILL Staking Rewards

25% (25 million) of all QUILL tokens will be initialized as the governance staking rewards for the entire INK DAO and any other DAOs that use QUILL as a governance token. The annual emission figure is dynamically calculated based on the usage indicators of the INK platform for every year. The initial emission period is set to 20 years, and the period follows the smooth curve calculated as follows:

Daily Incentive Emissions = 3800 * (0.98⁰.0000005 * Cn) ^ (0.618 * Cn),
where
Cn is the number of days from its launch to the day of calculation

As aforementioned, a major portion of any rents and fees captured by INK DAO treasury will be used to swap for QUILLs in circulation, which is to be placed on the bottom of the reward emission pool. Consequently, when the initial emission pool is exhausted, the recycled QUILLs will form a new reward emission pool to ensure continuous governance staking. This cycle maintains a “non-inflationary” monetary system that strikes the balance between sufficient utility, liquidity, and the scarcity of QUILL tokens.

The INK DAO Treasury

The INK DAO treasury assets are accumulated from fees charged on transaction volumes or assets under custody going through the INK facilities, plus facility rental income. Fees are initially set at a minimum of 0.2% (or the equivalent in QUILL tokens) for transactions, or 0.5% per annum for assets under custody. After 25% being deducted to maintain the facilities, the rest of the 75% will go to the INK DAO treasury’s on-chain vault.

The fees are adjusted annually according to INK DAO’s voting. INK community members can propose to change the fee parameters, and the entire QUILL holding communities can vote on these proposals, and the INK DAO board will approve. Once the resolutions are formed, they will be automatically executed by smart contracts on-chain.

Summary

QUILL, the platform token of Ink Finance, is designed as a completely decentrally managed economic token, and its governance process is implemented entirely by INK’s own flagship facilities, which perfectly manifests Ink Finance’s governance ideology and methodology through self-realization, demonstrating the power of a DAO management platform that integrates governance economics, community management, and comprehensive financial capabilities.

Based on the design of the business model, the market valuation of QUILL will be realized through three incremental steps:

A. Source of Base Valuation

Benchmarked off of the revenue models of traditional SaaS platforms, INK’s group of high-value client DAOs will bring huge cash flow income to this decentralized facility during their operations, which will be directly fed into QUILL’s market value. Such revenue composition is different from that of the traditional software, in that INK directly captures the staking & pledging demand as the required resource investment for governance, on top of the revenue captured from the transactions and assets under custody. Since INK connects DAOs to the wide markets of decentralized financial services in the crypto world, the increasing financial demand of the DAOs using INK will directly drive the value growth of QUILLs due to these two mechanisms. It can be expected that the number of users and the scale of usage entails an extremely high ceiling of growth in the foreseeable future. This is also the core difference between INK and other DAO tools in terms of valuation.

B. The Value from Ecological Growth

The INK Sponsorship mechanism is one of the most innovative features in its economic model. Members of the INK DAO community (through their elected professional managers) can choose to provide high-potential user DAOs with sponsorship pledges, to support their operation on the INK facility. The INK community not only obtains the governance rights of these client DAOs, but also the equity-like returns derived from their tokens paid to INK as a rent. INK laid a path in the crypto world with this decentralized business model, where the owner group of the facility can have the opportunity to “invest” in the client group of the facility and share growth. This is completely unimaginable under the traditional corporate system, and highlights INK’s innovation in governance economy with a crypto mindset.

DAO is the core economic carrier in the Web3 era. Almost all Web3 projects will eventually operate in some sort of DAO mode, and the current progress is less than 1%. INK is precisely the tool platform to accelerate this evolution, and gives all QUILL support There is an opportunity to capture the huge market value dividends of Web3 DAO in the future.

C. The Value of Self-adaptivity

QUILL’s token economy model is not of the crude “one-hat-fits-all”, but of the key mechanisms of self adaptation. These mechanisms are implemented by the INK DAO’s decentralized community, a market oriented and bottom-up decision-making process. The on-chain implementation of such mechanisms fulfills the operation mode of a true decentralized facility. Even in the crypto world, this is a pioneering model (most tokenomics models with dynamically adjustable operating parameters still rely on heavy centralized intervention) attributable to INK itself being a powerful governance economics and financial facility.

For example:

• Regarding the core operational parameter of minimum facility occupancy and standard fee capture of financial services, INK adjusts through a DAO governance process to adapt to market realities in different environments, so that INK can stay constantly competitive.

• In terms of fiscal issues such as the expenditure proportion of INK DAO treasury and the swapping of treasury assets for the QUILLs in circulation, sensible and transparent financial operations can be made according to the prevailing market conditions.

• On the issue of deciding which DAOs can be sponsored to use INK facilities, the community can elect professional managers to make judgment on the prospects of the DAOs in question, in a market-oriented and professional fashion, thereby directly linking these decisions to the interests of the entire community.

• Individual QUILL holders’ ability to sponsor DAOs and their managers further extends the power of individuals in a decentralized world that truly reflects the unique advantage of Web3.

• These innovative mechanisms will enable INK platform to achieve sustainable and healthy ecological growth, adapt to the dynamic and challenging market environments, and give the QUILL holder community the greatest opportunity for long term return.

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter | Website | Medium | Youtube | Linkedin

From January 2022, Decentralized Autonomous Organizations (DAOs) have seen assets in their treasuries increase by 7.6%, reaching up to $10 billion for the first time in October. This is an obvious sign that a secure and efficient treasury management system is one of the most critical aspects of a DAO’s operation, as shown in its increased demand. Though a robust treasury is simple enough to ask for, it isn’t easy to package it all into one management structure because comprehensive treasuries involve multiple independent functional components from managing treasury assets, revenue, payroll distribution, investment, and other fiscal duties on-chain.

Ink Finance’s all-in-one DAO infrastructure does just that! It encompasses and integrates DAO creation, treasury operations, investment & funding, and community economy.

INK’s no-code easy-to-use web app provides organizations with an easy way to set up & elegant DAO governance solutions to manage complex treasuries. Communities or corporations simply plugin their registration and, with just a few clicks, are up and running as Web3 decentralized autonomous organizations. Every function can be picked off the shelf, customized, and seamlessly integrated into an overall governance framework.

The following diagrams will focus on INK’s Treasury Management functionalities.

Treasury Management on Ink Finance

Ink Finance’s Treasury Management is a one-stop comprehensive treasury solution providing DAOs with manager identity verification, multi-asset treasury vault, payment, transfer control, income, revenue audit, & more.

Ⅰ. Setting up the Treasury (plug-and-play)

Treasury Management functionalities are a “pluggable” top-level suite that can be picked off the shelf, customized, and integrated by a DAO board member.

A DAO board member can propose to appoint any verified manager wallet to the Treasury Committee and assign them different responsibilities and operational privileges. DAO treasury managers and the roles assigned to them are voted into position through INK’s proposing process. Once the DAO has reached a post-vote resolution, Ink Finance will execute the resolution on-chain & create a multi-asset treasury vault controlled by approved managers.

Ⅱ. The Secure and Multi-Asset Treasury Vault

Ink Finance is a smart-contract factory for DAOs. INK holds no operational authority over these smart contracts. The Treasury Manager roles, the process through which these roles are created, and the smart contracts tied to DAO-voted resolutions guarantee security & autonomy. Any subsequent treasury vault operations, like transaction setup, signing, etc., must be verified by one of these vault-controlling smart contracts tied to the resolution executed on-chain.

The treasury vault is a Universal Custodian Vault or UCV. It supports any blockchain asset, especially InkEnvelope-wrapped assets. INK highlights InkEnvelopes because they are instrumental to DAO asset acquisition, especially if your DAO’s assets are on multiple blockchain networks or off-chain. When cross-chain technology isn’t available, or if the assets you own are not on-chain (like in the various gaming or Metaverse ecosystems). Treasury managers can rely on INK’s asset wrapping facility (InkEnvelopes) to wrap, import, and deposit any asset into the DAO treasury vault.

Ⅲ. The Integrity of the Treasury Manager

Treasury managers on the Ink Finance platform are treated like any other DAO manager. They must have at least one type of identity verification connected to their wallets. It is entirely up to the DAO to decide what and how many identity verifications are required.

Ink Finance provides the following options for identity verification:

• INK social media verification

• Humanode biometric verification

• Astra regulatory compliance verification

A Treasury Manager can play any one of four roles, each having different responsibilities and privileges:

• Treasury Operators are responsible for setting up asset transfers or payments.

• Treasury Signers are responsible for multi-signing transactions set up by the Treasury Operators.

• Treasury Auditors are responsible for auditing the treasury’s revenue and capital management.

• Treasury Investment Managers are responsible for making investment decisions on behalf of the treasury.

IV. Treasury Operations

1. Initiation of Payments & Transfers

Only Treasury Operators perform these tasks:

• Periodic Payrolls

Multiple recurring payroll schedules can be set up, each with their respective pay periods, payee addresses, currencies, and amounts. These setups will trigger periodic pay instructions signed off by the Treasury Signers.

• One-off Payments

Non-recurring payments can be set up as frequently as desired. The facility supports uploading batch payment files, which can later be signed in batch by the Treasury Signers. It provides a very convenient way to conduct community airdrops or reward members for any off-chain activity.

• Direct Payments between Vaults

Another form of non-recurring payment can happen between two organizations, such as a Meta DAO and one of its sub-DAOs, or between an investment DAO and a Metaverse DAO. In these cases, the payee address must be another UCV. Once signed off by the Treasury Signers, funds or assets will be directly sent to the receiving vault address.

2. Signing off Payments and Transfers

Only Treasury Signers can sign off on payments or transfers. For periodic payrolls, the signer signs for each period of a particular schedule; for one-off payments, they sign per request. Once signed off, the payees collect periodic payments and one-off payments. Vault-to-vault payments are sent once the last signer has signed off.

3.Income & Revenue Audit

Many blockchain organizations have chaotic and opaque income and revenue treasury management systems. Ink Finance allows the Board of a DAO to specify which critical income and revenue categories can be audited. When asset injections are made, depositors can go through a treasury function under a pre-defined category, and Treasury Auditors can perform on-chain audits in every category.

4.Treasury Information

At any time, DAO members, contributors, and investors can check their treasury’s balance, see what’s happening in their DAO’s ecosystem, and gauge metrics to help ensure financial health. This includes but is not limited to its current balance in the treasury. All outgoing expenditures can be tracked and viewed through Payment History, and all the incoming transactions can be viewed via the audit reports.

Our motto: Finance is built on credit, and credit is competence. Let the Web3 world see your DAO’s competence and reputation on-chain!

Learn more and experience Ink Finance DAO’s Treasury: https://ink-finance.gitbook.io/ink-finance-guide

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter | Website | Medium | Youtube | Linkedin

Crypto CeFi, the Original Sin

The spectacular and scandalous collapse of FTX showed the colossal damage that a centrally organized, opaquely disclosed, and reckless managed financial agent can do to the entire industry and society at large. That centralized organizations can dominate the assets originated from decentralized networks is a sad irony, a disease that has plagued crypto since the day when there was crypto trading.

The narrative of the “crypto natives” is that blockchain technology was supposed to replace centralized entities, the likes of the Federal Reserve or other monetary authorities. Whereas in reality, cryptocurrency has handed itself to the shady and sketchy organizations that primarily use them to loot and raid. The irony is so sharp that it hurts. It has never been clearer than NOW that decentralized, transparent, rigorous, and professional management of the Web3 finance must take the center stage. NOW isn’t just a watershed-moment, it is an existential one.

The infrastructures needed to enable and sustain a crypto-powered Web3 go far beyond the DeFi in its current form, as facilities in this category are merely independent functional units — MUCH better units than their counterparts in centralized systems. What we regard as the absolute necessity is the operational and control layer on top of these functional units, capable of enforcing responsibility & accountability imposed upon the operators of these functional units, while demonstrating their competence & credibility. These operators should ideally be elected and monitored by the communities (organized as DAOs) they serve, and are regulatory compliant to perform their professional tasks, if necessary.

Throughout 2021 and the better part of 2022, prior to the fallout of FTX, the number of DAO participants has already grown from 13,000 to a whopping 1.7 million people worldwide. The records speak for themselves; decentralization is the heart and soul of Web3. The damages done by the likes of FTX, 3AC, Celsius, etc. will only serve to show the advantage of Decentralized Autonomous Organizations (DAOs), as they are built on blockchains and promise transparent and democratic governance. Yet such lofty promises will disappoint if the operations of the DAOs are built on leaky or shaky foundations, particularly regarding their finance.

Integrated Financial Management in a DAO

Most DAOs today are built hastily with incoherent and fragmented management components that have resulted in plutocratic governance schemes, Sybil-infested incentive structures, and the proliferation of useless “utility tokens” (as fundraising vehicles). While these integrity and economic issues are already threatening the viability of DAO as an important augment to the traditional corporate framework, the lack of professional fiscal and finance tooling makes the matter even worse.

There have been numerous DAO treasury tools in the market, and more are coming. Most of them are multi-sign wallets in one form or another. Participants in the Web3 financial management sector need to urgently understand that the robustness of individual parts of a machine is not the same as a well-designed and well-run machine itself. How these parts are put together is entirely a different thing of its own merit. A Multi-sig wallet can be regarded similarly to a DeFi lending protocol or a DEX as an independent functional part (we can’t emphasize enough that they all are MUCH better than their counterparts in the centrally managed regime). Yet, what makes up a financial management framework is the processes and procedures governing the usage of these parts, which must also be built on-chain to be verifiable and enforceable.

A quick review of the evolution of the Web1 economy to the Web2 economy may shed light on our vision of the DAO financial management in the Web3 era. There were once numerous companies of various sizes who were all building their own online business systems. There were abundant independent solutions available to them (front end browser tools, back end server tools, middleware, payment, etc.), and yet what made Web2 an ultimate success isn’t the abundance or individual qualities of these solutions; it is rather the emergence of cloud service and SaaS. Specialized, customizable, integrated, and off-the-shelf software suites that are capable of providing end-to-end solutions for a certain domain of business have won the day.

This is what Ink Finance is delivering to DAOs who treat their fiscal management and financing seriously.

What Financial DAOs Look Like in the Future

While progress in recognizing DAOs as legal entities is underway in places such as Wyoming and the Marshal Islands, or that the Colorado co-op scheme is being revised to embody DAOs, the underlying technical infrastructures that carry them must be built to address at least the following three critical aspects of on-chain finance:

◼ 1. This is the easiest to understand: open source DeFi protocols that carry out financial transactions such as spot trading, derivatives, lending, cross-chain asset swaps, and payment solutions. These facilities have never been short of innovation since DeFi took root in 2019, and will certainly attract more talents and investments after the fallout of FTX.

◼ 2. The operational and control layer on top of the above mentioned DeFi facilities. It is very much underappreciated why the aforementioned facilities are not enough to mitigate financial risks by themselves alone.

Let’s use Aave and Uniswap, the two prominent DeFi protocols, as examples. If an asset manager spends $1M to acquire token X from Uniswap and then pledges it on Aave to get a $700k loan, and then uses the proceeds to acquire more token X from Uniswap, and then pledges it again on Aave, and repeats the process indefinitely, neither Aave nor Uniswap can stop his egregious leveraging. The guardrail curbing this asset manager’s action is the key, which leads to the inevitable process of rulemaking and enforcement — the process of financial governance, itself being a part of a more general governance framework.

What makes this process challenging is that the domain of finance is widespread, requiring profound financial knowledge and the proper engineering that delivers rigor as well as flexibility. This is the sector that Ink Finance is specialized in, one that we expect to see more competition in, as its critical importance becomes more and more clear to the institutions and large ecosystems. We regard this sector as the financial SaaS of Web3.

◼ 3. Last but not least, the integration with global regulations. The FTX debacle has shown the harm of regulation arbitrage. If the advanced leading countries do not step up on the regulatory effort, the shady organizations will simply base themselves in jurisdictions with poor or no regulation, yet the nature of cryptocurrencies assures that the harm will be felt globally. Encouragingly, various decentralized protocols have made major inroads in this domain, paving the way for on-chain organizations to be regulatory compliant if they choose to. Ink Finance has dedicated critical efforts to integrating these technologies to its own stack, partnered with industry leaders such as Astra and Humanode.

To sum up, the financial DAOs of the future will need to use open source DeFi facilities as their transactional backbone, manage its fiscal and financial process with a transparent and on-chain executable financial control framework, and make themselves regulatory compliant when required.

Conclusion

The ingredients to the long-term legitimacy of on-chain finance are customizable, flexible, and specialized products that can be picked off-shelf and ready for end-to-end deployment, that brings professionalism, security, transparency, and adaptivity to regulatory oversight.

Only when the crypto industry can deliver such sound financial management solutions, will it then be able to persuade and incentivize traditional institutions to shake off the carnage brought by the centralized agents operating under the banner of crypto. Only then can institutions such as auction houses, VC & angel investors, alternative asset managers, and web2 metaverse companies adopt DAO as an augment to their corporate structure in order to achieve high efficiency of their businesses, which is the promise of the Web3 world.

At Ink Finance, we will keep delivering the most comprehensive and professional solutions to financially minded DAOs. We might be facing the longest and coldest crypto winter, but we are ready to chew glass and work with other determined builders to accelerate the adoption of TRUE decentralized finance.

About Ink Finance

Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.

Learn more about Ink Finance and what we’re building:

Telegram | Announcement | Discord | Twitter | Website | Medium | Youtube | Linkedin