🏦Mutual Fund

Mutual funds provide small or individual investors access to investments. Each shareholder therefore participates proportionally in the profits or losses of the fund.

• Fundraising. NLP burning is deactivated. NLP offering is activated.

• DAO earning process. NLP burning is deactivated. NLP offering is deactivated.

• Profit distribution. NLP burning is activated. NLP offering is deactivated.

• Repeat.

The simplest model of working with NEO DAO involves three main phases:

We can execute a private round first, followed by a public round. We can also have only a private round or only a public round as the first round.

How is a private offering different from a public offering?

A private offering allows only a certain amount of NLP tokens to be purchased by a specific user.

A public offering allows an unlimited number of users to purchase an unlimited number of tokens.

Private Round - We can create a specific private offer for an investor. We set the price in a specific asset and the number of NLP tokens that will be redeemed at the specified price (there are no restrictions here). After the purchase, the offer will be automatically deactivated. NEO DAO will receive the proceeds from the sale of NLP tokens in its own account.

Public Round - We can create a public offer for many participants. We set the price for 1 NLP token. NEO DAO will receive the proceeds from the sale of NLP tokens in its own account.

For example, consider this case: we sold 10 NLP tokens to a participant in a private round for 200 USDT. 1 NLP = 20 USDT.

NEO DAO earned 200 USDT in a private round. We also sold 1 NLP token to the public to 10 members at the price of 20 USDT each. NEO DAO earned 200 USDT in the public round. DAO AUM (asset under management) 200 + 200 = 400 USDT. In total, NEO DAO distributed 20 NLP tokens. A member with 10 NLP tokens has a 50% stake in NEO DAO. A member with 1 NLP token has a 5% stake in NEO DAO.

NEO DAO earning process:

In our example, NEO DAO was able to earn +100 USDT with its actions.

NEO DAO AUM 400 + 100 = 500 USDT.

How will the profit be distributed among the participants now?

Participant with a 50% stake, 200 USDT -> 250 USDT. Participant with a 5% stake, 20 USDT -> 25 USDT.

Exit NEO DAO:

In this phase, NEO DAO does not make money and does not invite new members, but gives current members time to exit. Let's say that no one wants to leave NEO DAO at this time. The shares remain the same.

Second fundraising round:

Now it's important to determine the value of the NLP token to raise funds again and not depreciate the shares of the contributors from the first round.

We will use the following formula:

Or simply: Second round of fundraising:

Now it is important to determine the value of the NLP token to raise funds again and not devalue the contributors' shares from the first round.

We will use the following formula: NLP Price = NEO DAO AUM / NLP Total Supply

In our example: 500/20 = $25 (we can also slightly increase the price of NLP this time so that previous participants make a small profit in this phase).

We create another public offering. We set the price for 1 NLP = $25. Our token was purchased by 10 more people, 1 NLP each, and NEO DAO received +$250 in the treasury. The total AUM of NEO DAO is $500 + $250 = $750.

The shares are distributed as follows: NEO DAO has distributed 30 NLP in total. The participant with 10 NLP holds 33.3% of NEO DAO shares. A member with 1 NLP has 3.33% of NEO DAO shares.

The money is distributed as follows: Participant with 33.3% share, $250 -> $250. The first-round participant has a 3.3% share, $25 -> $25. The second-round participant has a 3.3% share, $25 -> $25.

NEO DAO earnings process: Let's say NEO DAO has managed to earn x2 in this phase. NEO DAO AUM = $750 + $750 = $1,500. Participant with 33.3% share, $250 -> $500. Participant with 3.3% share, $25 -> $50.

Exit NEO DAO: After successful agreements, some of the partners have decided to leave. Let's say 5 people with 1 NLP decide to burn their tokens and exit.

There are 25 NLPs left in circulation. NEO DAO AUM = $1,250. The shares and profits of the participants were distributed as follows: Participant with 10 NLPs, 40% share, $500 -> $500. The participant with 1 NLP has a 4% share, $50 -> $50.

Rule #1 How to distribute profits among investors? The NLP token itself is the mechanism for distributing profits. Investors earn as long as they hold NLP tokens. To cash out their profits, they burn their share. This burning will be manually activated on predetermined dates.

Rule #2 How do we protect our investors? By activating the NLP token burning mechanism and not freezing this rule. We can also select specific days for participants in which the burning function will be active. The burning function will be activated and deactivated manually.

The figures and information provided are approximate and for informational purposes only. They do not constitute a guarantee of income. Please note that all investments involve risk, and past performance is not indicative of future results. Investing in NEO DAO or any other investment opportunity carries risk, and potential investors should conduct their own research and seek the advice of a financial advisor before making any investment decisions.