Top BONK Whale Makes Major Investment in 'Ycombinator for Solana'

• BONK Meme Coin: From a Joke to a Serious Investor
• Bonk DAO: Leveraging BONK for Investments
• Role of Colosseum in the Solana Ecosystem
• Evolution of the BONK DAO
• Future Plans for BONK

BONK Meme Coin: From a Joke to a Serious Investor

Originally conceived as a playful method of distributing wealth among the Solana$104 5.03% community following the FTX$3.28 -5.38% crash in late 2022, the BONK meme coin has seen a significant transformation a year later. Now, it stands as a serious investor in a venture fund, a development that has taken many by surprise.

Bonk DAO: Leveraging BONK for Investments

Bonk DAO, a council comprised of 12 influential figures within the Solana ecosystem, controls $124 million worth of BONK token. According to a recent governance vote, this group intends to allocate $500,000 from its treasury to an early-stage startup fund dedicated to supporting projects built on Solana.

Role of Colosseum in the Solana Ecosystem

The startup fund is the brainchild of Colosseum, a newly-established startup accelerator responsible for organizing hackathons that facilitate the development of new projects within the Solana ecosystem. This responsibility was handed over to Colosseum by the Solana Foundation last week. Matty Taylor, the former head of growth at the Solana Foundation, is now at the helm of Colosseum.

This type of investment in a venture fund by a DAO is unprecedented, which is why it took us by surprise, expressed Taylor, who refrained from commenting on Colosseum's ongoing fundraising efforts due to securities laws.

Evolution of the BONK DAO

The BONK DAO came into being along with the inception of the BONK token in 2022. The creators of the meme coin allocated more than 15% of all BONK to the DAO for the purpose of managing and investing in community projects, as stated on BONK's website. This Cayman-based entity remains the single-largest holder of BONK tokens, holding over 12% of the meme coin's total supply.

Since its establishment, the DAO has voted for the use of BONK tokens in sponsoring hackathons, contributing to liquidity pools, and collaborating with DeFi partners across Solana. The proposed investment marks its first venture into writing a check for investments, as illustrated on its governance page.

Future Plans for BONK

The proposal to allocate funds to Colosseum received unanimous support, with eight votes in favor and none against, marking a significant step towards turning BONK into a Ycombinator for SOL. The proposal identified the importance of supporting builders in the ecosystem and diversifying the DAO treasury across early stage builders and founders via equity.

A separate vote is currently in progress, which proposes the conversion of BONK into USDC through a long-term trading partnership with market-maker STS Digital.

Edited by Jonathan Stoker