The DAO behind popular meme token BONK is putting its money where its mouth is to support development on the Solana blockchain.
Bonk DAO announced this week it has allocated $500,000 to invest in an early-stage venture capital fund focused exclusively on Solana startups.
- Bonk DAO, which oversees $124 million in BONK tokens, voted to invest $500,000 into an early-stage venture fund for Solana projects
- The fund is organized by startup accelerator Colosseum, which runs hackathons to create new dapps and protocols for Solana
- This represents Bonk DAO’s first ever venture capital investment check to support innovation on Solana
- Bonk DAO was formed in 2022 when BONK coin creators allocated tokens to it to manage for community efforts
- Meanwhile, the BONK token price has fallen nearly 9% amid broader crypto market declines, though some see a potential bullish reversal shaping up
The fund is organized by new startup accelerator Colosseum, which runs hackathons aimed at creating innovative decentralized apps and protocols purpose-built for Solana. The Solana Foundation itself recently tapped Colosseum, led by former executive Matty Taylor, to foster growth in its broader ecosystem.
For Bonk DAO, the investment represents a milestone as its inaugural venture check designed to spur innovation on its chosen blockchain home. The council of 12 individuals overseeing the BONK token treasury jumped at the chance to back Solana’s version of Y Combinator.
Bonk DAO controls over $124 million worth of tokens from its share of last year’s membe coin distribution. It passed the proposal to invest in Colosseum’s hackathon-focused fund via governance vote, seeing broad internal support for the blockchain-advancement move.
The group originally formed when BONK creators endowed it with tokens to help make community-focused decisions. Since launching in 2022, the DAO has directed BONK to various Solana liquidity programs, hackathons, DeFi partnerships and more to enrich its ecosystem.
Even as Bonk DAO branches into VC, the BONK token itself has slid in price amid crypto market turmoil. Its value has dropped nearly 9% over the last day as broad selling wiped out over $350 billion in total market capitalization globally.
Some technical analysts say BONK may be primed for a bullish breakout despite market doldrums. But persistent bear signals, including Bitcoin wallowing below $43,500 this week, indicate meme coin gains could remain elusive near-term.
Still, Bonk DAO’s proactive push into funding Solana core development shows a maturing side to a community known best for irreverent jokes and dog-themed memes. The merger of grassroots engagement with targeted investment could set an example for how to sustain open-source ecosystems over the long haul.