# Introduction
AlgoDAO is a community-owned and community-driven DAO, Incubator, Launchpad, and Innovation Pool purpose-built for the Algorand network.

AlgoDAO serves as a primary market ecosystem that aids the rapid realization of Algorand’s mission to eliminate the technical barriers that hamper the mainstream adoption of blockchain technology. As Algorand eliminates the technical barriers, AlgoDAO eliminates the economic barriers by providing access to a DAO-governed incubator and primary market infrastructure that enables builders to access funding at scale.

As AlgoDAO continues to achieve its development targets to attract greater interest from institutional and private stakeholders, we are excited to share with you more details about what’s under the hood at Algorand and what you can expect as we continue to build.

We are undertaking an ambitious project to mainstream Algorand and the Web3 projects that it powers, and we encourage you to come along for the ride.

## What is AlgoDAO?
AlgoDAO is a next-generation DAO-governed incubator, primary market infrastructure, and accelerator for the Algorand ecosystem powered by the ADAO token. AlgoDAO eliminates the economic barriers to Web3 funding by providing access to a DAO-governed incubator and primary market infrastructure that enables builders to access funding at scale. AlgoDAO is made up of four distinct but complementary building blocks;

## DAO-governed Accelerator
AlgoDAO Accelerator supports projects from incubation until they are ready for the market, and beyond through Incubation, Pre-money financing, and IDO rounds. As a DAO-governed accelerator, it has decentralized project-access-controls to ensure democratic access for all participants.

## Launchpad
AlgoDAO Launchpad empowers Algorand to scale its DeFi, dApps, and Web3 applications ecosystem by discovering, enabling and supporting strong dev teams to build and launch on Algorand towards a thriving DeFi, dApps, and Web3 ecosystem.

## SIGMA pool
AlgoDAO’s SIGMA pool is a special liquidity pool collectively owned by the AlgoDAO community. The SIGMA Pool has a SIGMA token model which empowers the community to access truly democratic and inclusive launchpad tokenomics. The SIGMA pool is designed to continue to grow sustainably with every pre-money round funded through AlgoDAO and from every IDO conducted through AlgoDAO Launchpad.

## DAO-governed liquidity engine
AlgoDAO Liquidity Engine is a liquidity-providing and market-making model with liquidity pooling capabilities aimed at creating efficient and sustainable liquidity across Algorand’s DeFi ecosystem. The liquidity engine is still in development and we will inform the community when it is live.

## Our Motivations
Why Algorand?
Algorand is one of the most technically advanced L1 blockchains, with a provably fast, decentralized, developer-friendly, secure, yet flexible protocol. However, we observed that the DeFi ecosystem on Algorand currently lags behind the DeFi ecosystems on other blockchains. The disparity between the TVL of Algorand’s DeFi relative to other comparable networks provides an opportunity to stimulate and incentivize dev teams to build on Algorand and for communities to emerge around what’s being built.

AlgoDAO addresses the need by functioning as a DAO-governed incubator and primary market infrastructure to rapidly scale Algorand’s DeFi ecosystem to make ALGO a more productive asset, get the community more engaged, and build a solid foundation for Algorand’s DeFi to thrive.

## Who owns AlgoDAO?
AlgoDAO is an autonomous community-owned and driven ecosystem. It has a carefully balanced governance framework that gives all members of the DAO a voice in how AlgoDAO functions and runs. Who is AlgoDAO for? All projects building and intending to build on Algorand. Current and new Algorand community members, Institutional investors - VCs, family offices, funds.

## Who is behind AlgoDAO?
AlgoDAO is an open-source project with valuable contributions from members of the DAO. The initial development is being facilitated by a capable team with experience in: Sourcing the best projects with an intent to launch on Algorand, attracting projects from other chains to launch on Algorand. Vetting project concepts and facilitating the orderly delivery of tech promised and ecosystem capabilities. You can find more information about the AlgoDAO team here.

### Who will benefit from AlgoDAO ?
- AlgoDAO members
- Teams building on Algorand
- The Algorand ecosystem
## What is an IDO and why is AlgoDAO using IDOs?
IDO is an acronym for Initial DEX Offering and it refers to the sale of the tokens of new projects using decentralized solutions to provide equal access opportunities for all interested participants and ensure transparency.

AlgoDAO is using IDOs because it aligns with the decentralized, transparent, and democratic ideals of Web3. IDOs can be provably democratic, fair, and transparent because the IDO conditions are managed by smart contracts rather than humans.

We can predefine conditions such as maximum allocation per user, duration of fundraising, and IDO termination, among others. AlgoDAO adopts the IDO mechanism because it ensures that both teams and users get the maximum benefits from each fundraising round under the most efficient conditions.