Ink Finance Aims To Be the Gold Standard of DAO Financial Management—Here's What It Does Differently From Other Tools

With support from strategic backers like Republic Crypto, Alliance DAO, Avalanche, and Polygon, Ink Finance has developed one of the most robust DAO financial tooling platforms on blockchain. It aims to turn its all-in-one toolset into the gold standard of financially minded DAOs to establish their competence, creditworthiness, and compliance.

After a simultaneous debut of the open beta version of the INK Webapp on Avalanche, Ethereum, Polygon, and BSC, Ink Finance is already reportedly attracting organizations in the metaverse gaming and DeFi protocol sectors, and has plans to expand into other high-growth sectors such as crypto asset management, venture capital, angel funds, and real-world fintech like carbon finance and cross-border e-commerce. Here’s how INK sets itself apart from other DAO management platforms in the space.

Building and Managing a DAO Today Requires a Hodgepodge of dApps

The current landscape of DAO construction and management tools is fragmented. The emerging space is populated with dApps that can perform specific operations, but none that serve as an all-in-one toolkit. Integration of composable parts is easier said than done. 

Colony, for example, is one of the more robust DAO-building tools that let you define a DAO’s structure, assign permissions and roles to individuals or groups, coordinate work, and more. However, the original user experience was complicated and not very accessible and the platform has been working to upgrade its features to function as smoothly as those on some of the more specialized tools.

Snapshot, on the other hand, isn’t a DAO-building tool but it is one of the leading decision-making tools. DAOs can create proposals, choose from a set of voting systems, and let members vote without gas fees. Collab.Land is a community management tool that allows DAOS to verify user identities, set and manage roles, and make sure users still own the digital assets required for a certain role or channel. 

As effective as each tool is for its specific function, the result is that DAOs often need to juggle multiple applications to manage all aspects of their operations. Build the framework on one app, handle the voting on another app, manage member roles and their verifications on yet another app, and so on. For small DAOs, this is already a cumbersome process but as an organization scales, the hodgepodge of tools becomes even more unwieldy.

For financially minded DAOs, the options get even more limited. With a lot more regulatory complexities and risks, managing a financial DAO can be tough. At the moment, one of the leading tools tailored to this niche is Syndicate. The investing protocol and social network offer the infrastructure and tools needed to pool assets and make investment decisions as a group. While it’s a great tool for building investment clubs, it doesn’t offer many tools beyond that - financial DAOs can’t issue bespoke products and compliance tools are still limited. 

How Ink Finance Is Changing the DAO Management Landscape

The goal of Ink Finance from the outset was to create an all-in-one toolset that could simplify the process of creating and managing a DAO while maintaining the flexibility and customizability, to free users from picking and choosing from a dizzying array of specialized apps, which is a cumbersome and exploitable undertaking. The platform uses a user-friendly plug-and-play setup to make DAO configuration easy, even for users without a strong background in blockchain. 

It offers an intuitive and comprehensive hierarchical system that allows a DAO to form divisions and sub entities to focus on narrower missions and cope with local regulations. The most consequential decisions made at any level of a large ecosystem are executed by smart contracts, including treasury creation, payment management, and revenue audits, eliminating the burdensome and exploitable integration of voting and execution. As soon as a proposal is approved, digital vaults are built to secure collateral, tradeable tokens are issued cross-chain. This allows for the kind of disclosure needed by institutional or retail investors to prudently evaluate a DAO’s management competence and financial health.

Packing its outstanding financial capability is the INK Products Module, at the core of which is a unique asset wrapper called InkEnvelope. DAOs can map & wrap any asset that’s not available from the local blockchain, or create bespoke financial products, through the traceable governance process involving accountable roles, and package them in tradeable FTs or NFTs. Then, the DAO can issue, risk-manage, settle, and clear these financial products entirely on-chain.

This can make it possible to do much more than raise funds to invest as an investment club. DAO-managed ETFs, blockchain-based bonds, and physically-backed NFTs are available on the menu, among other innovative uses.

Moreover, once a DAO is built on INK, it can easily migrate that framework and financial products to other blockchains without needing to start from scratch on each network. That gives INK users growth opportunities as they can establish a reputation across multiple blockchains, reaching a wider pool of investors, all the while consolidating management and balance sheet with one toolset.

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Image provided by Shubham Dhage on Unsplash