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# Loot sale Ideation


# 📄 **Updated Private Placement Memorandum (PPM)**

### **Issuer**:

Raid Guild DAO LLC, a Marshall Islands-registered MiDAO

### **Offering**:

Non-voting equity shares ("Loot")

### **Offering Size**:

\$2,500,000

### **Price per Share**:

\$100 USD

### **Shares to be Issued**:

25,000 Loot shares to investors
5,000 Loot shares reserved in DAO treasury
**Total Post-Raise Loot Supply**: 30,000

### **Valuation**:

Post-money valuation (Loot basis): \$3,000,000
Fully diluted economic cap (RG + Loot): 105,670 units

### **Use of Proceeds**:

* Extend runway to 3 years
* Scale client delivery and project incubation
* Fund operations, contributors, and ecosystem growth
* Expand brand, network, and community presence

### **Rights of Loot Shares**:

* Non-voting equity (no governance rights)
* Pro-rata rights to declared dividends
* Quarterly financial reporting rights
* Transferable only with DAO approval
* DAO may optionally redeem at NAV or specified terms

### **Capitalization & Ownership**:

| Class           | Units  | Ownership Share                   | Notes                        |
| --------------- | ------ | --------------------------------- | ---------------------------- |
| Voting (RG)     | 75,670 | 100% voting power, 71.6% economic | Fixed, not impacted by raise |
| Loot (Investor) | 25,000 | 0% voting, 23.7% economic         | Issued to investors          |
| Loot (Treasury) | 5,000  | 0% voting, 4.7% economic          | For ops/rewards/buybacks     |

### **Risk Factors**:

* DAO governance uncertainty
* Regulatory exposure (U.S. securities law, global jurisdictions)
* No guaranteed liquidity or redemption
* Market risk, operational risk, contributor reliance

---

# ❓ **Updated Investor FAQ**

**What am I buying?**
You are buying non-voting equity ("Loot") in Raid Guild DAO LLC, which entitles you to a share of profits (via dividends) and potential future redemption.

**What are the terms?**

* \$100 per share
* 25,000 shares available in this round
* Target raise: \$2.5M
* Post-raise economic ownership: 23.7%

**Do Loot holders have governance rights?**
No. Voting is limited to DAO members holding RG tokens.

**Will I get dividends?**
Yes, if and when declared by the DAO based on operating profits. Dividends are distributed pro-rata to Loot and RG holders.

**How liquid are these shares?**
Shares are non-transferable without DAO approval. There is currently no secondary market. DAO may conduct buybacks or redemptions in the future.

**Can I redeem my Loot?**
Only at the DAO’s discretion, and potentially at NAV or pre-agreed terms. This is not guaranteed.

**What does the DAO do?**
Raid Guild provides services to Web3 clients (infrastructure, dApps, gaming, etc.), and is preparing to incubate its own products. Revenues are generated through these activities.

**Is this a token?**
No, this is equity in the DAO’s legal entity, not an ERC20 token.

**Who do I contact for details or to invest?**
📨 Email: [clerics@raidguild.org](mailto:clerics@raidguild.org)

---

# ✍️ **Updated Subscription Agreement Outline**

**This Subscription Agreement (“Agreement”) is made by and between:**

* **Issuer**: Raid Guild DAO LLC, a MiDAO in the Marshall Islands
* **Investor**: \[Investor Full Name or Entity]

---

### 1. **Subscription Details**

* Amount: $\[Investment Amount]
* Price per Loot Share: \$100 USD
* Number of Loot Shares Purchased: \[Investment Amount / 100]
* Total Offering Size: \$2,500,000 (25,000 Loot Shares)

---

### 2. **Investor Representations**

* Accredited investor status under applicable law
* Will comply with KYC/AML requirements
* Understands the risks, including lack of liquidity and regulatory uncertainty

---

### 3. **Company Representations**

* Organized and in good standing under Marshall Islands law
* Authorized to issue Loot shares

---

### 4. **Loot Share Terms**

* Non-voting equity
* Entitled to pro-rata dividends
* Not freely transferable
* May be redeemable at DAO’s discretion

---

### 5. **Governing Law**

This Agreement shall be governed by and interpreted in accordance with the laws of the Republic of the Marshall Islands.

---

### 6. **Signatures**

**Investor**
Name: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Signature: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Raid Guild DAO LLC**
By: \[Authorized Signatory]
Signature: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_



## NOTES Below:

## 📄 **Private Placement Memorandum (PPM)**

**Issuer**: RaidGuild DAO LLC, a Marshall Islands-registered MiDAO

**Offering**: Non-voting equity shares ("Loot")([handbook.raidguild.org][1])

**Offering Amount**: Up to $\[TARGET RAISE], minimum investment $\[MINIMUM CHECK SIZE]

**Valuation**: Pre-money valuation of $\[PRE-MONEY VAL], fully diluted

**Price per Share**: $\[PRICE] per Loot share([handbook.raidguild.org][1])

**Use of Proceeds**:

* Extend operational runway (up to 3 years)
* Expand service operations
* Incubate product initiatives
* Develop shared infrastructure and public goods

**Rights of Loot Shares**:

* No voting rights
* Pro-rata dividend rights based on net profits
* Information rights: quarterly financial summaries and access to governance proposals
* Liquidity: shares are non-transferable without consent of the DAO
* Optional redemption rights at DAO discretion

**Risk Factors**:

* Market volatility
* Regulatory changes
* DAO-specific risks([alphanome.ai][2])

**Legal and Regulatory**:

* Jurisdiction: Marshall Islands
* Accreditation requirements: investors must be accredited per applicable jurisdictions([handbook.raidguild.org][1])

**Appendices**:

* Operating Agreement summary
* Current cap table and dilution scenarios
* Team bios and partner network highlights

---

## ❓ **Investor FAQ**

**What am I investing in?**
Non-voting equity shares ("Loot") in RaidGuild DAO LLC, entitling holders to a proportional claim on the Guild’s assets and potential dividends.([handbook.raidguild.org][1])

**What rights do Loot shares confer?**

* No voting rights
* Pro-rata dividend rights
* Access to quarterly financial summaries and governance proposals
* Potential redemption rights at DAO discretion([sanadkarkarjd.medium.com][3])

**Are Loot shares transferable?**
Shares are non-transferable without prior written approval by the DAO.

**How are dividends paid?**
Dividends are paid pro-rata based on net profits, after DAO budget needs are met, and when declared by the DAO.

**What are the risks involved?**
Investors should be aware of market volatility, regulatory changes, and DAO-specific risks.

**Can I exit or redeem my investment?**
Shares may be bought back at Net Asset Value (NAV) or a predefined formula based on earnings, at the DAO's discretion.

**Who is eligible to invest?**
Only accredited investors per applicable jurisdictions, subject to KYC/AML compliance.

**How is RaidGuild governed?**
The DAO is governed by voting members holding regular shares, while Loot holders have no voting rights but may have advisory roles.

**Who do I contact for more information?**
Please reach out to our investor relations team at \[contact information].

---

## ✍️ **Subscription Agreement**

**Parties**:

* **Issuer**: RaidGuild DAO LLC
* **Investor**: \[Investor Name]

**Investment Details**:

* Amount Invested: $\[AMOUNT]
* Number of Loot Shares: \[NUMBER]
* Price per Share: $\[PRICE]

**Investor Representations and Warranties**:

* Investor is an accredited investor per applicable laws
* Investor has completed KYC/AML procedures
* Investor acknowledges the risks involved([investopedia.com][4])

**Company Representations and Warranties**:

* Issuer is duly incorporated and in good standing under the laws of the Marshall Islands
* Issuer has the authority to issue Loot shares

**Rights and Restrictions**:

* Loot shares confer no voting rights
* Shares are non-transferable without DAO approval
* Dividends are paid at the DAO's discretion
* Shares may be redeemed at DAO discretion

**Governing Law**:
This Agreement shall be governed by and construed in accordance with the laws of the Marshall Islands.

**Signatures**:

* **Issuer**: \[Authorized Signatory]
* **Investor**: \[Investor Name]\([investopedia.com][4])

---

Please review these drafts and let me know if you'd like to proceed with refining any specific sections or if you have additional information to incorporate.

[1]: https://handbook.raidguild.org/docs/membership/raid-guild-shares?utm_source=chatgpt.com "RaidGuild Shares - RaidGuild Handbook"
[2]: https://www.alphanome.ai/post/understanding-super-voting-stock-and-its-implications-for-investors?utm_source=chatgpt.com "Understanding Super-Voting Stock and Its Implications for Investors"
[3]: https://sanadkarkarjd.medium.com/is-your-dao-legally-protected-why-the-marshall-islands-dao-llc-could-be-the-best-setup-for-you-394bab2cbd45?utm_source=chatgpt.com "Is Your DAO Legally Protected? Why the Marshall Islands DAO LLC ..."
[4]: https://www.investopedia.com/terms/c/classbshares.asp?utm_source=chatgpt.com "Class B Shares: Definition, How They Work, and Voting Power"


---

## 📊 1. **How Much Should RaidGuild Raise?**

### ✅ **Factors to Consider:**

* **Runway goal:** You mentioned targeting **a 3-year runway**.
* **Team size & expenses:** Let's assume \~\$600k–\$1M/year in operating costs for core contributors, ops, and experiments (conservative DAO scale-up estimate).
* **Expansion strategy:** If you're planning to incubate products and run multiple client teams, you'll want an innovation buffer.

### 🎯 **Target Raise Range:**

| Strategy          | Raise Size  | Notes                                                                             |
| ----------------- | ----------- | --------------------------------------------------------------------------------- |
| 🧃 Lean Runway    | \$1.5M      | Covers 3 years at \~\$500k/year burn. Best for survival + core ops.               |
| 🚀 Growth-Focused | \$2.5M–\$3M | Includes product incubation, recruiting, and BD expansion.                        |
| 🦄 Big Vision     | \$5M        | Multiple product spinouts, full-stack internal innovation lab, IRL presence, etc. |

**Recommendation**: Start with a **\$2.5M target raise**, expandable to \$3M with oversubscription room. Frame it around stages:

* Year 1: Expand services + infra
* Year 2: Launch 1–2 incubated products
* Year 3: Grow revenues + sustainability, explore buybacks

---

## 💰 2. **What Should the Price Per Share Be?**

Let’s reverse engineer it using your cap table:

### 🔢 Current Token Supply:

You’ve shown \~75K voting tokens across \~20 major holders. Assuming that’s close to 100%, let’s extrapolate:

* If **8,284 = 10.95%**, then total supply ≈ **75,670 RG tokens**

You can treat this like a **fully diluted valuation** model:

### Example Scenarios:

| Total Valuation | Loot Share Pool         | Price per Loot Share |
| --------------- | ----------------------- | -------------------- |
| \$10M           | 75,000 (same as voting) | \~\$133              |
| \$5M            | 75,000                  | \~\$66               |
| \$2.5M          | 75,000                  | \~\$33               |

> To simplify for new investors: **round share price to \$50–100 per loot** and adjust share supply accordingly.

Or flip it: define the **loot share supply cap (e.g. 25,000)** and adjust price to meet your raise target.

---

## 🪙 3. **What Should You Consider When Issuing More Loot?**

### ✅ Considerations:

* **Loot should not dilute voting power.** Keep voting tokens separate and scarce.
* **Clarify share class rights in DAO docs:** Loot = non-voting, dividend-eligible, informational rights, possibly redemption rights.
* **Future-proof allocation:** Reserve some Loot for a potential secondary offering or employee-style comp.

### 🚨 Risks to Avoid:

* Issuing Loot at too low a price: undervalues community sweat equity.
* Allowing transferability without protections: invites regulatory issues or DAO dilution via shadow voting.
* Lack of clear redemption/exit plan: could make investors hesitant.

---

## ✅ Summary Recommendations

| Parameter             | Recommendation                                                                                                             |
| --------------------- | -------------------------------------------------------------------------------------------------------------------------- |
| **Target Raise**      | \$2.5M (up to \$3M stretch)                                                                                                |
| **Share Price**       | \$50–\$100 per Loot share                                                                                                  |
| **Loot Supply**       | 25,000–50,000 Loot max (for this round)                                                                                    |
| **Voting Tokens**     | Freeze issuance unless part of DAO membership approval                                                                     |
| **Governance Update** | Add Loot issuance clause to operating agreement + token redemption framework                                               |
| **Investor Framing**  | This is a dividend-generating equity stake in a highly functional, high-rep DAO with upside from service + product revenue |



## 🧾 **Raid Guild Cap Table Simulation**

### Assumptions:

* **Current Voting Shares (RG):** 75,670 (from your provided cap table)
* **New Capital Raise:** \$2.5M
* **Price per Loot Share:** \$100
* **New Loot Shares to Issue:** 25,000
* **Loot Reserve for DAO Treasury:** 5,000 (optional)

---

### 📊 Cap Table (Post-Raise)

| Holder                 | Voting Shares | % Voting Power | Loot Shares | % of Loot | Notes                           |
| ---------------------- | ------------- | -------------- | ----------- | --------- | ------------------------------- |
| Current DAO Members    | 75,670        | 100%           | 0           | 0%        | Governance remains undiluted    |
| New Investors          | 0             | 0%             | 25,000      | 83.3%     | All newly issued loot           |
| DAO Treasury (Reserve) | 0             | 0%             | 5,000       | 16.7%     | Held for buybacks, grants, etc. |
| **Total**              | **75,670**    | **100%**       | **30,000**  | **100%**  |                                 |

---

### 🧮 Valuation Snapshot

* **Voting Share Value**: Not explicitly priced (governance tokens, not equity)
* **Loot Share Price**: \$100
* **Post-Money Valuation (Loot basis only)**:
  \$100 × 30,000 shares = **\$3M** (including DAO-held loot)

---

### 💡 Strategic Notes

* You’ve raised \$2.5M while giving up **zero voting control**.
* DAO retains a **16.7% reserve** to reward future contributors or run buybacks.
* Optional: Set up a policy for **loot buyback or burn** from treasury if not used.


> **There is *no dilution of governance power* for current members** because you're issuing *non-voting* equity (Loot). However, there **is economic dilution** in the form of future cash flow and asset claim rights.

---


### 🧭 1. **Governance Dilution**

**None.**

* Voting shares (RG) stay fixed at 75,670.
* New investors get 0 voting rights.
* So the voting power of existing members remains 100%.

This is ideal for maintaining **sovereignty** while raising capital.

---

### 💰 2. **Economic Dilution**

**Yes, there is some.**
The key question is: *Who gets how much of the future profits or proceeds?*

Let’s simulate dividend or exit distribution based on **Loot + RG** as economic units.

Assume:

* Total claims to profits = Voting + Non-Voting shares = 75,670 (RG) + 30,000 (Loot) = **105,670 units**
* Investor owns 25,000 / 105,670 = **\~23.66%** of total economic claim
* DAO treasury owns 5,000 / 105,670 = **\~4.73%**
* Current members keep 75,670 / 105,670 = **\~71.6%**

---

## 📉 Economic Dilution for Members: \~28.4%

That means current members:

* Go from **100% → 71.6%** of profit or asset share.
* But retain **100% governance control** (assuming no change to RG structure).

---

### 📌 TL;DR

| Category           | Pre-Raise | Post-Raise |
| ------------------ | --------- | ---------- |
| **Voting Power**   | 100%      | 100%       |
| **Economic Share** | 100%      | \~71.6%    |

This is a **good trade** if the \$2.5M you raise significantly increases:

* Total revenue / dividend pie
* Long-term treasury health
* Strategic optionality (e.g., product launches, IRL presence, future buybacks)
