Citizen X - Fund - Contributions (the value addooorr)

Hello Merit Circle DAO frens, and gm!

I’m Michael Tant, Co-founder and general partner at CitizenX Crypto Ventures. CitizenX is a crypto-native thesis-driven venture fund that participated in the MC DAO seed round.

I’m writing this post on behalf of our fund for the sake of transparency and accountability to the MC DAO. This comes after several governance forum posts called for each of the investors to provide updates to the community regarding our involvement in the DAO.

Firstly, some background on me and CitizenX. As an individual investor and advisor, I have been in the crypto space building on Ethereum since 2016, and have focused on investing in DeFi protocols, DAOs, and crypto gaming. CitizenX deployed its first early-stage fund over the last year, primarily with our own capital, and we are currently in the process of closing a second fund to continue to invest in the best founders and teams in the space. As a fund, our foremost goal is to be the best investor on the cap table of every team or protocol we invest in. One of our primary focuses as a value-add for portfolio companies has been token design, where we help teams design tokens and DAOs from the ground up.

Transparency: Diamond-hands

We are long-term investors who make sure we have the highest conviction in teams and projects before investing. This gives us the ability to align ourselves with the long-term interests of the protocols we invest in and thus, in market downturns, diamond hand our liquid positions and in some cases double down on them. In light of this, we will be staking our tokens in alignment with the DAO.

  • You can find here our already public Ethereum address which holds our $MC tokens: 0x7fA32E98C5f3C8594DE1785e23905FB0C74bcCd7
  • Alternatively, you can always search for our public ENS connected to this address which is citizenx.eth.

Accountability and Value Added to the DAO:

Over the last 7 months, we have had daily contact with Merit Circle’s founding team, most regularly with Mark. Some of the ways we have added value include:

  • Deal Diligence/Advisory: The Merit Circle team consults with us regularly on many of the deals the DAO invests in, and we help vet and diligence those deals. The MC team has told us directly that we have been one of the most valuable and involved investors on the cap table, which is feedback we are honored to have and very grateful for.

  • Investor Introductions: We have provided at least a dozen introductions to very large institutional investors and partners who have been interested in working with and supporting the DAO directly. More information on this will be forthcoming over the next several months.

  • Multi-Sig Signer: We are a signer on the multi-sig for the DAO and sign transactions for the DAO when the DAO needs it. This responsibility on occasion requires time-sensitive transactions to be approved, and we have made it a priority to be available to sign TXNs even at odd or otherwise busy times.

  • Deal Flow and Negotiations: We provide unique and quality deal flow to the MC DAO on a nearly weekly basis. Since the launch of the DAO, we have introduced 25+ different deals to the MC DAO. Of these deals, the MC DAO has invested in at least 10 of these deals, with many unannounced and some still pending.

    • In addition to simply sharing deal flow, we have been strong advocates for the MC DAO in rounds that we are in and made room for the DAO even in rounds that were closed.
    • On multiple occasions, we negotiated for MC to have more room in a round that was heavily oversubscribed, and in other instances have even negotiated discounts to the rest of the round for the DAO.
    • One example of this that we can reference given it was recently made public is the scenius.xyz seed round, which was extremely competitive and oversubscribed even before we introduced the MC DAO. Despite this, the MC DAO was able to have one of the largest checks in the round due to our strong advocacy.
  • Advisory Allocations: On top of this, we have also directly negotiated large advisory token allocations for the MC DAO in at least 5 projects, in some of these cases with the MC DAO possessing the largest advisory allocations possible. Whenever we find a crypto gaming project we are excited about, the MC DAO is always our first introduction to teams we find interesting and our most highly recommended possible investor and partner.

  • Co-investing in MC Deals: In addition to bringing deal flow to the DAO, we are regular co-investors and advisors to the projects the MC DAO invests in or incubates. We have invested in at least 6 deals that the MC DAO has shared with us including Arcade, Azuro, and several unannounced deals. We have made it our goal to provide as much value to those projects as we can. This includes things such as introducing them to other funds or angel investors in the space we think might be good fits, writing Twitter threads on the project, connecting projects to NFT figureheads and influencers in the space for PR, doing token/mechanism design, helping with DAO governance, connecting them to other launch partners, and providing product feedback. Our contributions and investments in those projects result directly in more value accrual for the MC DAO itself. In fact, one of our first official governance posts was several months ago in relation to our funding of the first ever Merit Circle DAO incubated Sub-DAO project called Seed Words which you can find here. The Seed Words project is still being built, and governance discussions are ongoing around the DAO’s investment, but it’s our intention to invest alongside the MC DAO in the first incubated MC DAO project.

  • General Advisory: In addition to the areas above, we regularly discuss and provide feedback on MC DAO product design, long-term strategy/vision, MC DAO investments, NFT strategy, and partnerships, to name a few.

Looking Forward:

As long-term strategic partners of the MC DAO, we plan to continue doing what we have done over the past 7 months–working hard every day to create and drive value back to the DAO. As we close our second fund, expand our team, and grow our brand, we envision ourselves continuing to partner with the MC DAO as co-investors in and partners with many of the best gaming projects in the space.

We will continue to connect with the MC team daily and think creatively about ways the DAO can grow and improve. If anyone ever has any questions for us, feel free to shoot us a message on the forum or on Twitter.

Cheers!

17 Likes

Meow,

We want to thank @MichaelTant3, and CitizenX Crypto Ventures, for contributing to the Transparency & Accountability forum posts.

Since the beginning of Merit Circle, CitizenX has served as a model seed investor, and has brought an incredible amount of value to the DAO. Michael’s thread doesn’t do justice to how much he has personally helped Merit Circle grow, and so we will attempt to reinforce just how key CitizenX has been over the past 7 months.

A great starting point is CitizenX’s work as a Core Contributor. This has involved co-writing numerous key proposals for the DAO, such as MIP-2 Broad Investment Mandate, MIP-4 Development of Gaming Platform with Dept Agency, and MIP-10 Framework Games Development. In fact, 5 of the 10 MIPs which have passed have been co-written by CitizenX, and the other Core Contributors. This has helped set the foundation for which the DAO is built upon, and has given the DAO lots to look forward to in the near future. We truly admire this high level of activity within the DAO, and are excited to see further contributions from CitizenX going forward.

We are also grateful for serving as a signee for the ever-important Multi-Sig DAO wallets. This is something that is greatly underappreciated, but is still essential for the DAO to operate, and bears a high level of responsibility. These signees are responsible for keeping DAO funds secure, and ensuring efficient deployment of funds. CitizenX have always been available at all hours of the day, everyday, to sign essential transactions off when needed.

From an advisory standpoint, the Merit Circle team has made it clear how vital Michael and the CitizenX team have been over the past 7 months. From advising on the public sale for the Merit Circle token, to advising on responding to the recent MIP-13, and all the other examples Michael has given, CitizenX have been with the Merit Circle team each step of the way. Michael himself has personally dedicated countless hours helping with long-term strategy planning for the DAO.

Perhaps most impressive of all though, are the deals that CitizenX has brought to Merit Circle.

We know that a key source of future income for the DAO, are the ongoing seed deals Merit Circle continues to invest in. It is also no secret that the best seed deals are highly competitive. Michael has demonstrated CitizenX’s value in bringing these competitive seed deals to Merit Circle, and securing investment from the DAO, as well as helping the DAO to expand its network. With over 25 introductions, and 10+ confirmed investments, this impact cannot be understated. This even involved getting Merit Circle into rounds which were completely full, and could turn out to be hugely profitable for the DAO. As we move forward, these investments will be instrumental in building the DAO treasury, and expanding Merit Circle’s reach across GameFi.

On top of the 10+ investment deals, bringing the DAO at least 5 sets of advisory tokens is a magnificent contribution. Much like the seed deals, advisory tokens will play a large role in bringing the DAO consistent income for years to come. They also demonstrate that Merit Circle can contribute a huge amount of value to projects, without having to directly spend capital.

With all of the seed deals, advisory tokens and DAO contributions so far, it would be easy for CitizenX to sit back and think “Job Done” for the next 3 years. Instead, Michael wants to bring MORE deals to Merit Circle, and help write even more proposals. We believe CitizenX, and Michael, will be key contributors to the DAO for years to come.

It goes without saying that CitizenX, and Michael, are active, and fully fledged, members of the DAO. We are thoroughly pleased to see the numerous areas of value that they have brought to the DAO listed in this thread, and greatly look forward to continuing to work with them in the future.

Signed with right paw,

Simon Mittens
Sad Cat Capital

8 Likes

Hi Michael & Citizen X,

Thank you for the excellent overview and value add. It’s great to see such strong advisors involved with our multi-sig, part of our investment committee, and providing the DAO with an impressive deal flow. Citizen X is an integral cog in the success of MC.

Appreciate the work behind the scenes.

Best regards,
AS

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Henlo,

We’re impressed by you and your fund’s active participation for MC and we see you as a true Fren. Please continue to do what you are already doing so that we may all grow our numbers and joy together.

Your deal flow shares are of much value, and the way you actively participated in co-writing many proposals shouldn’t be underestimated either.

We give you the title ‘Fren of the Freefolk’.

Thanks Citizen-X!

Honey Barrel
Vanquisher of non-Frens
The Freefolk Fellowship

honey-with-wooden-barrel-vectors

3 Likes

Welcome Michael to our DAO forum family.

We are glad to have such an amazing activists seed investors among our community.

People and funds like yours is who makes a difference and stands out in the sea of dumpooors and value extractooors.

Looking forward for the bright future we will have together.

Regards

2 Likes

Greetings, and thank you for the activity post.

This is Admiral Erik von Pumpson of the MC Enterprise. Thanks for all the based work you’re doing. Good deal flow and advisory has always been very appreciated, as is the general networking for the DAO. We hope you stick around for many years to come, so we can prosper greatly together. Can’t wait to see more of Citizen X. We know you’ve been a terrific value-add the past many months.

Signed,

Erik von Pumpson
Admiral of the MC Enterprise
Ascending Galactic Federation

1 Like

GM Michael,

I have been having vivid dreams of late. Dreams of a DAO so powerful it could take over all of GameFi. I knew the DAO couldn’t get there by itself, we would need all frens united and working together.

After reading your thread, I believe you to be an important part of this dream. You have provided us with an endless amount of value, and have dedicated yourself to the Merit Circle cause. We couldn’t ask for more from an investor, and you have our endless gratitude.

Excited to see what CitizenX brings in the future!

Graciously,
Johnny Jawnz

wojak

2 Likes

Thank you so much for the kind words and support Sad Cat, we are excited to continue working together.

Cheers,
!Lmeow

1 Like