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By
MIDAO
January 29, 2025
The landscape of crowdfunding is undergoing a dramatic transformation. While platforms like Kickstarter and GoFundMe revolutionized fundraising in Web2, they still suffer from fundamental issues of trust, transparency, and contributor protection. Now, a new wave of DAO-powered crowdfunding tools is addressing these challenges through smart contracts and on-chain governance.
In a recent episode of the Just DAO It podcast hosted by Adam Miller, Travis and Sam from DAOhaus shared their insights on the future of decentralized fundraising. As core contributors to DAOhaus and creators of Yeeter, a DAO-powered crowdfunding platform, they've been at the forefront of developing solutions that make community funding more transparent and secure. Their work with Moloch V3 contracts and experiments with projects like Brood (a decentralized brewery) and Post Your Ale offer valuable insights into how DAOs can transform the way we think about crowdfunding.
Traditional crowdfunding platforms have revolutionized how creators and entrepreneurs raise money, but they suffer from fundamental limitations that often leave contributors vulnerable. Project creators have no guaranteed accountability mechanisms once they receive funds, and contributors have little visibility into how their money is being used. There's also no built-in way for contributors to protect their investments or participate in project governance if things go wrong.
As Travis from DAOhaus explains, "The problem wasn't the concept—it was the lack of accountability. Teams raised money, they promised to build something, they didn't deliver. Investors got wrecked." This lack of protection has led to numerous cases where project creators either failed to deliver or misused funds, with contributors having no recourse except traditional legal channels—which are often impractical given the global nature of crowdfunding and the relatively small amounts invested by individual contributors.
At the heart of DAO-powered crowdfunding is the concept of RageQuit—a mechanism that allows contributors to exit with their share of remaining funds if they disagree with the project's direction. Sam, a DAOhaus founder, explains: "If you don't agree with what the team is doing—if the team isn't delivering—you can RageQuit. You can take your portion of the treasury back. And that puts the power in the hands of the people."
Unlike traditional platforms where funds go directly to project creators, DAO crowdfunding tools like Yeeter put all contributions into smart contracts. As Sam describes: "Fees go into the DAO. Everyone who holds the token can vote on how those funds are used. Or—they can RageQuit their tokens. Or—they can sell them on the market."
Yeeter, built by the DAOhaus team, represents a significant evolution in crowdfunding technology. Travis explains the concept: "Yeeter is our crowdfunding tool. It lets you say: 'Hey, I have an idea!' 'We have a project we want to fund.' It's kind of like a crypto Kickstarter. But—the key difference is that it's built on top of the Moloch contracts."
The platform includes several innovative features:
When someone launches a project on Yeeter, Sam explains that "It's a completely fair pre-sale—fully open. If the team wants tokens? They have to buy them—just like everyone else." This creates a level playing field where everyone has the same opportunities and protections.
One fascinating implementation of DAO crowdfunding is Brood, a decentralized brewery project. Travis describes how it works: "We brew beers for protocols, DAOs, other communities. A team comes together to design the label. They put together the formula for the beer. They get it brewed and canned."
The project uses innovative token mechanics: "Every beer has an NFT embedded in the label... If you scan the QR code, you can claim a Proof of Drink token. If you have that token, you get membership into the DAO and into the channel."
Travis provides a simple example of how Yeeter can be used for social impact: "Let's say I want to put jackets on homeless people in downtown Austin. I need to raise $1,000 to do that. I can put that out into the social feed, get the support I need, and execute on that goal. And—the people who contribute get shares in the DAO that spins up for that crowdfund."
The underlying infrastructure for these crowdfunding tools is built on Moloch V3 contracts. Sam explains: "Moloch DAO is the baseline for everything. So, we can use that as our data/blockchain layer and then plug in other tooling as needed."
A key innovation is how the contracts handle fund management. Travis describes: "When you put your tokens into those contracts, you have to take responsibility." But unlike traditional crowdfunding where that responsibility lies solely with the project creator, these contracts enforce accountability through code.
The current regulatory landscape poses challenges for crypto fundraising. As Sam notes, "We would lean toward technology as the solution. How can technology help ease regulation?"
One ongoing challenge is making these tools accessible to mainstream users. Travis acknowledges: "This stuff is really complicated. It can be overwhelming and frustrating. When you're juggling multiple tools, you're bound to experience burnout."
There's still significant work needed to educate users about these new protections. Travis observes: "Right now? People don't care. That's not the type of crowd involved in this cycle. They're here for the speculation. They don't want protections."
The next evolution of DAO crowdfunding is integration with social platforms. The DAOhaus team is building Farcastles to enable "group chats with bank accounts"—where communities can seamlessly move from discussion to fundraising within the same interface.
The future points toward more flexible, purpose-driven funding models. Sam describes the vision for "small, ephemeral DAOs" that can rapidly organize around specific goals: "Spin up quickly, form a team, raise funds, execute on their goal, share revenue transparently, RageQuit and dissolve when the work is done."
DAO-powered crowdfunding represents a fundamental shift in how communities can organize and fund projects. By combining smart contract protection mechanisms with transparent governance, these tools offer a more equitable and secure way to raise and manage funds.
As Travis puts it: "This is how we disrupt existing funding models. This is how we decentralize. This is how we incentivize communities to participate in projects they believe in—without having to go through traditional structures."
For DAO builders and communities looking to leverage these tools, platforms like Yeeter provide a starting point to experiment with this new paradigm of community-driven funding. The key is understanding that these aren't just technological innovations—they're new models for coordinating resources and trust in the digital age.
