The POLVEN governance token & investment procedure

Polka Ventures
3 min readMar 25, 2021

Governance tokens give holders the right to influence the existing strategies and create new ones. One of the biggest advantages of these tokens is that they give the holder a direct stake in decentralized finance platforms. Those who receive tokens have the influence to decide how platform economics transform over time.

Polka Ventures is approaching the government token with on-chain governance. In the context of blockchains, participants have incentives to consolidate power and guide the network in directions that benefit them. Basically, there are 3 different approaches to on-chain governance:
- Fork-based governance
- Stake-based governance
- Entity-based governance

We decided to go for a stake-based governance. All token holders who have sufficient funds are enabled to vote. We believe that this is the most suitable solution for token holders. It is a bit like the voting right 200 years ago in some European countries: only those who had wealth could vote. We will implement a Sybil platform solution for the governance voting process.

Said so, the management of Polka Ventures reserves the right to make up to 20% of its investments directly without governance token votes. This is necessary because some investments are time sensitive and others need a high level of reactivity that can only be assured by fund management.

We are motivated by creating value investing into promising ventures. Together with our community we are stronger because we do not only invest funds but also provide networking in the DeFi ecosystem.

How Polka Ventures investment process works step by step?

Polka Ventures invests into projects when they launch their token or shortly before a listing through private sales. Our community plays a very important role: any member can submit a start-up project that was identified matching our investment criteria. After a pre-screening of our advisors, we will then submit the projects for voting. With a governance token our community will vote into which projects and tokens to invest.

We place an investment ticket of various amounts and invest. A certain ratio of the initial investment will be returned shortly after listing in order to secure a steady asset funding level. The remainder will remain invested for a period of up to 1 year. We invest either with ETH or our own POLVEN token if it is done through a pre listing private sales.

Polka Ventures is the FIRST venture capital fund to run with a governance token.


Web: Polka Ventures. Decentralized investments


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