Devcoin Fund Investment

This article links to Devcoin_Fund


Investors are necessary for a workable model of the Fund to progress beyond concept.

In the development stage investors funds (DVC) would be used as bounties or to pay developers directly:

  • Integrate the website with the community banking software discussed on the technology page: Devcoin_Fund_Technology
  • Design and test an investment strategy
  • Promote the Fund to the Devcoin community and build membership
  • Develop products to service businesses accepting DVC as payment

In stage one of the project investors funds would be used to purchase members DVC from that round. As the number of DVC generated in each round does not change (only the shares do), the required investment amount would be determined by USD/DVC values at the time.

Stage one should take no more than 3-6 rounds from development.

In stage two of the project, investors should start to see dividends from the trading and investment activities of the fund. (see Investment Strategy below)

In stage three of the project investors should be given the opportunity to sell their investment back to the Fund and the Fund should be self supporting.

Investor Types

Investing in the fund needs to be inclusive and allow any member of the fund to contribute.

This means anyone with a Devcoin wallet should have the opportunity to invest in the fund even those not contributing to the ongoing growth or development of Devcoin or the Devcoin community. 1)

Angel Investors

  • Philanthropic Investors who give with no expectation of reward. (Gifts or donations)

Foundation Investors

  • Investors who commit to 12 rounds or more (This means, leaving their investment with the fund for 12 rounds or more)

In order to offer any chance of stability and ensure the best outcome for the fund and Investors, a 12 round minimum is necessary before the Fund can return the USD invested by foundation investors.

Community Investors

  • Investors who commit to 6 rounds support for the fund (This means leaving their investment with the fund for 6 rounds or more)

Investment and Return Model

In order to provide the Fund and Membership with the best chance of success, an individual with crypto currency market management experience will need to help develop this model.

For now this is an overview of the concept:

  • Investors create a pool of USD($)
  • The Fund uses the USD ($) in the pool to buy DVC from members
  • The Fund creates a pool of DVC
  • The Fund sells some DVC direct to the public for USD
  • The Fund invests remaining DVC on behalf of investors and members

Over time the Fund returns dividends to Investors and improved/additional services to members.

Ideally the Fund would return the initial investment to investors and become self supporting through the investment and sale of DVC. As Investors are paid back, the Fund buys back those shares and dividends are returned to the Fund.

In this “best case” scenario, the Fund would then have the potential to invest these dividends in new developments and technologies that support and build the community without seeking a return (charitable support)


The Investment and Return Model needs to take into account the core intentions of the Devcoin Community and the Devcoin Fund:

  • Open Source contribution to the Devcoin Community should be recognised and rewarded in a fair and equitable way
  • Members of the Devcoin community fund have access to services provided by the fund
  • Investors to the fund are rewarded for their support

The underlying intention of the Fund is to be a self supporting entity, driven by sustainability not profit. Any profit realised by the Fund is returned to the community.

It is hope the Fund would eventually provide a perpetual source of funding for Open Source technologies and products.

Investment Strategy

This discussion is open to any contributions, the original writer has no previous investment experience but there are a number of investment strategies that could be utilised by the Fund, some have been explored by other Devtome writers with more knowledge:

Some of the potential risks associated with Devcoin investments are also explored in this article: devcoin_investment_case

Business | Investing | Devcoin

note - only those actually contributing to a particular round can access the DVC to USD member exchange rate, and only to the limit of their total shares in that round

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