Investment

A16Z, Sequoia Capital, and Fenbushi Capital share one thing in common that most of us do not - they had the opportunity to invest in Coinbase, Binance, and Ethereum in the early stages. Common Wealth is designed to give everyone a chance to participate in the next generation of Web 3 start up successes.

Who is Common Wealth for?

Common Wealth is for two kinds of investors:
Casual investor
CW community member
Invests using credit or debit card only
Invests using cryptocurrency
Only stakes WLTH to reduce carry fee
Stakes to govern, active in community forums, participates in rewards programs
Casual participation
Dedicated, involved, engaged

How does it work?

Council sources & proposes projects to invest - vetted, early stage deal-flow from top industry figures.
Users invests with credit/debit or crypto from $5 to $50 million. Community investors vote on which projects get invested in, their respective voting power is proportionate to their investment in the fund.
Exposure to diverse funds - themed funds, evergreen, community fund. Scalable due diligence, council AMAs, proposal workshops, analysis and reports via a state of the art mobile-first, tech stack.

Fund types

Common Wealth will offer investor exposure to a diverse range of funds - themed funds, evergreen (fund of funds), a community fund - with more fund types and mechanics under consideration for future inclusion.
Themed Funds
Community Fund
Evergreen Fund
Themed, capped funds (e.g. metaverse, infrastructure or distressed asset funds)
Funded by platform transaction fees, with all fund profits distributed back to WLTH holders
A fund of funds. Allows casual investors to gain exposure to diverse range of assets
Investor funded
TX fees & NFT sales
Investor funded

Investment Liquidity / Fractional Fund NFTs

Historically, it has been a challenge for the average investor to maintain liquidity while their funds are deployed and awaiting a return, often for many years.
Upon investing into a Common Wealth fund, you will receive a Fund NFT representing your stake in the fund. This Fund NFT can be sold in whole or in part at any time on Common Wealth and on secondary marketplaces, ensuring liquidity at all times.
  • An investor can choose to list their Fund NFT for sale on the platform or on an external NFT marketplace
  • An investor may choose to split their Fund NFTs into two or more parts, fractionalizing their original investment. They may then choose to sell one or more of those parts and retain the remainder themselves
Any royalty fees resulting from NFT sales go directly to help fund the Community Fund.

Fees

Instead of the traditional (and lucrative!) venture capital fee structure or a 2% management fee per year and a 20% fee on the investment profits, Common Wealth offers a fairer model:
  • Management fee - 2% management fee per year, capped at 5 years; collected at the time of investment
  • Carry fee - a baseline carry fee of 50%, that can be reduced to 10% via staking WLTH for discount

Staking for Discounts

Common Wealth recognises that investors want different things - some investors may prefer a more casual investment experience, while others may want to deep dive into every project and want a voice in running the community. Investors who hold WLTH tokens may choose to lock up those tokens for a period of time and in return will receive a discount on any carry fees due on their investment profits.
Our objective in designing this mechanism is to offer equal opportunities to any user, regardless of whether they invest $100 or $100,000, to obtain a discount on their stake that is proportional to the size of their investment.

Fund governance

Each fund invests in different projects, with active management from a council responsible for community-led decision making.
While the Council sources & proposes projects the community may be interested in, it is the community of investors who vote to create the investment decision - with investor voting power proportional to their investment in that particular fund. Currently, Snapshot is being utilised for fund governance until a complete on-chain transition is feasible.
Last modified 5mo ago