OpenLaw’s LAO Launches to ‘Break Apart Centralized Venture Capital Funds’ on Ethereum

OpenLaw launched a first-of-its-kind Limited Liability Autonomous Organization (LAO) on Tuesday, which would allow venture capitalists to make investments and generate returns on the upcoming line of Ethereum network-based projects.

The LAO is looking to attract at least 100 investors to its platform in the first phase who can make investments in numerous Ethereum products and generate capital from it.

The LAO project was first announced in September during the ETHBerlin conference. The project is open to international investors as well, however at present only accredited investors from the United States can join in.

How Does LAO Work?

The LAO starts with an LLC Wrapper registered in the state of Delaware. Investors are required to put a minimum of 120 ETH in a smart contract and then they can vote on the type of investment that the group would make.

And later make payouts based on those investments in different Ethereum projects. The success of this venture capital investment fund lies in how wisely the investors vote for the project they want to invest in.

LAO would host multiple projects in the form of tokenized shares which can be exchanged for an Ethereum deposit made by accredited investors in the pool.

These shares can be purchased in the form of ‘blocks’ which are equivalent to 1% of the minimum 120 ETH deposit, and up to 9% in shares can be purchased in LAO which would be equivalent to 1080 ETH.

According to their medium post,

“The power of the OLE stack (Ethereum, ChainLink, and OpenLaw) means that all relevant legal documents including subscription agreements will be generated for parties to easily come to agreement on relevant market terms. The sale will remain open until all units have been sold.”

The firm is planning to raise about $2.5 million for each LAO. This investment model was first put forward by the now-infamous bitcoin exchange Mt.Gox.

How LAO Differs From DAO?

LAO and DAO have the same investment principle, with one exception in the form of regulatory clearance from the Security and Exchange Commission (SEC).

The DAO investment project received a lot of flak after the infamous hack back in 2016: where hackers managed to withdraw $3.6 million from the investor pool and later faced the heat from regulators for offering unregulated securities.

The infamous hack also led to the hard-fork of the Etherum network, leading to the creation of Ethereum Classic. However, the major difference from the DAO project of 2016 is the ability to “Rage Quit,” which means an investor can pull out of the project whenever they feel it’s necessary, which gives complete control to investors over their capital.

Ethereum (ETH) Live Price

1 ETH/USD =$3,125.0927 change ~ -8.02%

Coin Market Cap

$362.29 Billion

24 Hour Volume

$23.35 Billion

24 Hour VWAP

$3.42 K

24 Hour Change


Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide