Executive summary
This proposal funds the incorporation and first year of operations of the Lisk DAO Fund, a dedicated vehicle to accelerate leading teams in the Lisk ecosystem and provide upside potential for the Lisk Treasury.
The Lisk DAO Fund aligns with the most recent Lisk strategy and the evolving needs of the Lisk ecosystem. The Lisk DAO Fund aims to replace a significant part of the seasonal Lisk DAO spending by converting all accelerator and incubator grants into Lisk DAO investments for the coming two years.
The total request for the first year of Lisk DAO Fund 1 (2026) is 3,733,000 LSK, of which 3,333,000 is projected to be invested into Lisk partner program graduates and high-potential onchain start-ups. A second Lisk DAO Fund 1 proposal of comparable size is expected to be submitted at the end of 2026 to cover the second half of the lifecycle of the Lisk DAO Fund 1.
Motivation
The Lisk DAO Fund 1 will be established to increase Lisk’s ability to attract, empower, and accelerate the best teams building onchain solutions, especially in high-growth markets, in a way that provides upside to the Lisk Ecosystem. It replaces the traditional graduate grants with investments that provide upside to the Lisk ecosystem and treasury.
Rationale
Lisk DAO Fund 1 leverages the existing momentum and strong network of Lisk-aligned incubators and accelerators to identify and support top builders. Historically, Lisk and the Lisk DAO have issued grants to graduates of these partner programs to help them launch and grow within the Lisk ecosystem.
As these programs continue to deliver tangible results and high-potential startups, we believe the next logical step is to establish a structure that allows both Lisk and the Lisk Treasury to benefit from the success of these startups. Lisk DAO Fund 1 will invest in these projects on favorable terms, creating financial upside for the Lisk Treasury.
By replacing graduate grants with strategic investments, the Lisk Treasury can capture value from the most promising builders in and around the Lisk ecosystem.
Specification
Lisk DAO Fund 1 will have the following scope:
Target Fund Size and Duration
Total allocation: Approximately 2M USD
Deployment horizon: 18-24 months
Instruments
The Lisk DAO Fund will deploy capital using early-stage investment instruments:
- SAFE (Simple Agreement for Future Equity)
- SAFT (Simple Agreement for Future Tokens)
Target Audience and Eligibility
Primary target: Graduates from Lisk-aligned incubation and acceleration programs, Onchain developers, fintech integrations, and real-world solution providers.
Geographic scope: Emphasis on Emerging Markets (Africa, LATAM, SEA).
Minimum maturity stage: MVP
Ecosystem alignment: Needs to have an active dApp on Lisk or graduated from a Lisk-ecosystem program.
Check Size and Staging
- Ranging from $25-50K USD in upfront funding.
- Follow-up rounds of up to $50K based on KPIs.
Governance and Decision-Making
- Investment Committee, with oversight by Fund Manager and Advisors, will make investment decisions. All decisions are to be tracked and communicated where operationally possible.
- Lisk Governance continues to have oversight and can, with a notice of 3 months, decide to pause fund allocations and recall its unallocated funds.
Success Metrics (KPIs)
- Number of funded projects and survival rate.
- Relative impact on ecosystem growth by Lisk Eco funded companies (txs, devs, users)
- The value of all funding proceeds, both in equity/tokens and stables/LSK, returned to LiskDAO at Fund Maturity or when successful exits..
Operations
The Fund will be managed by Symphony, a dedicated digital asset management firm for Ecosystem Funds, founded by the team behind Superchain Eco and led by Luuk Weber, who previously operated a DeFi fund from the Amsterdam Stock Exchange and has 9+ years of experience in Web3.
The Lisk DAO Fund will operate through a legal wrapper in a to-be-defined Jurisdiction and set up in a way that continues to provide Lisk DAO Governance influence in its operation and direction.
2026 Budget
| Item | Description | Budget |
|---|---|---|
| Direct Project Investments | Deployed as investments into high-potential projects in the Lisk ecosystem. | 3,33M LSK |
| Management Costs | Costs to administer and manage the Lisk DAO Fund, charged in yearly installments on January 1st of each active year. | 400K LSK |
Returns for LiskDAO
During the harvest/divestment period, projected to start approximately two years after starting Lisk DAO Fund 1, or whenever the Lisk DAO Fund exits a position worth more than $50K, the proceeds will be returned to the Lisk Treasury in USDT or USDC, minus a 25% carry fee charge on the net profits, which is vested over a period of six years to ensure long-term alignment and commitment from all partiers involved.
Example: Suppose the Lisk DAO Fund invests $25K in a project. After twelve months, the project launches a token on Lisk at a valuation four times higher than the initial investment.
The Investment Committee decides to fully exit the position, generating $100K in proceeds for the Lisk DAO Fund. This represents a net profit of $75K.
On this profit, the fund charges a 25% carry ($18.75K). After deducting the carry, $81.25K is returned to the Lisk Treasury.
Management Costs Breakdown
| Item | Cost |
|---|---|
| Legal and Admin Fees | $15K |
| Fund Manager | $45K |
| Investment Manager | $25K |
| Analyst | $10K |
| Comms, Marketing | $10K |
| Misc and Buffer | $10K |
Investment Committee Members
The Lisk DAO Fund 1 team balances capital deployment discipline with ecosystem-building know-how to serve both as an investor and growth engine.
| Role | Description | Person |
|---|---|---|
| Fund Manager | Sets investment strategy, priorities, and alignment with LiskDAO goals | Luuk |
| Investment Manager | Sources deals, performs due diligence, and manages pipelines. Handles fund administration, reporting, and transparency. | Jash |
| Analyst / Ops | Prepares data-driven investment memos and tracks KPIs. | Chris |
| Advisor | Provide deal review, mentorship, and credibility | Lisk / EMpower partner |
| Revolving Advisor | Provide deal review, mentorship, and credibility | Incubator / Partner |
| Revolving Advisor | Provide deal review, mentorship, and credibility | Lisk Delegate |