What does the path to a 10x return look like for Allo.Capital?

General
1

A one pager summary

What does ALLO sell in 1 sentence or less?

  1. For builders, we accelerate your journey with tech, funding, and distribution in exchange for a stake in your project.
  2. For funders, we provide you access to the capital allocation layer of the tokenized internet with a basket of funding infra generating fees.

What is ALLO in 1 paragraph or less? Allo invests in bold innovators who are reshaping how capital flows. We provide the investment, distribution, education, and marketing that emerging builders need to develop groundbreaking funding infrastructure. By unlocking new ways to allocate resources, we’re shaping a future where everyone can fund what matters to them.

Builder-centric answer:

  1. Find the talent. Quarterly retroactive airdrops to systematically mine the design space for the best Allo talent & builds.
  2. Find (3,3) with the talent. Give them ALLO pro-rata relative to the amount of $$ they move x how much we find they are aligned with us.
  3. Deepen (3,3) with talent. Give them more ALLO if/when they agree to a revenue share with us. 3x more allo for 3% of your revenue, 10x more allo for 10% more revenue and so on.
  4. Further deepen (3,3) with talent.
    1. Give them $$$ from the VC fund.
    2. Give them allo protocol & adjacent open source tools to build upon.
    3. Give them intelligence from our Intelligence Pillar.
    4. Give them distribution in the Gitcoin network + Greenpill network.
  5. Do this at scale. We do this across 20-100 projects (though quality is more important than quantity) from 2025-2028.
  6. Sell to Funders. Create the category of onchain capital allocation. Bundle it up as ALLO and sell it to LPs who want access to the emerging category of onchain capital allocation.

Funder centric answer:

Category Creation

  1. Spot an Untapped Need – Identify unmet problems or gaps. (Onchain Capital Allocation)
  2. Define the Category – Create and name the space.
  3. Educate the Market – Teach why the category matters.
  4. Own the Narrative – Be the voice and leader of the category.
  5. Deliver Excellence – Provide a product that defines the category.
  6. Build an Ecosystem – Foster partnerships and communities.
  7. Leverage Network Effects – Make adoption valuable as more people join.
  8. Capture First-Mover Advantage – Move fast to dominate early.
  9. Create Barriers to Entry – Build defensibility with IP, scale, or loyalty.
  10. Evolve Constantly – Stay relevant through innovation.

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Flywheel:

More funders begets more Builders, begets more funders, and so on…

Social proof:

  1. Good capital allocation is a problem that must be solved - Vitalik Buterin (Dec 2024)
  2. We need a funding mechanism for builders. Allo could be it - Juan Benet (Dec 2024).
  3. I’m excited to build this with you guys - Shaw from Ai16z (Dec 2024)

FAQ

  1. Why would Allo become the capallo layer of the tokenized internet, and beyond?

    1. All of the worlds assets become tokenized, creating 100x more tokens in treasuries worldwide.
    2. The EVM wins (via either a monopoly or duopoly) .
    3. Allo’s partners grow to consume a significant portion of capital allocation flow in the tokenized internet.

  2. What do we do about competitive relationships between ALLO builders?

    1. We build DAO to DAO partnership on the social, economic, tech layers.
    2. Traditionally DAO to DAO partnerships have been 1:1, but in/around ALLO they are many:many. Each ALLO partner is
      1. Aligned technologically with other ALLO partners if they build on Allo.
      2. Aligned socially with other ALLO partners if they consume our media.
      3. Aligned economically with other ALLO partners if they hold other ALLO tokens.

  3. How do we systematically explore the design space?

  4. Discovering Ideas, Teams & Builders Finding teams

    1. The decentralized search algorithm will be powered by OSO in combination with our intelligence pillar to evaluate opportunities within the space. Allo’s research arm (in combination with our community) will evaluate and ideate the best products & opps etc etc .
    2. We will leverage onchian analytics, and we will also be launching Allo Scouts - a new onchain tool that allows people to self-report cool new Allo builds, stake Allo on builds, and collect rev share from the best builders.

  5. Airdops

    1. On a quarterly basis, airdrop tojkens to the top builders. Make a big deal about it in the media with leaderboards + CTAs to use their tokens on Allo Proof of flow…
    2. Take a call with each team we want to consider investing with.

  6. How will we select which projects to give enhanced emissions?

    1. Allo DAO will decide, with input from Allo Scouts.
    2. We will have an expedited governance process for deciding.

  7. How will we select which projects to invest in with the fund?

    1. Fund GP will decide.

  8. What is the project maturity progression?

    1. Hallucination
    2. Hypothesis
    3. MVP
    4. Pilot
    5. Repeated pilots
    6. Scale
    7. Monetization
    8. Tokenization
    9. (We help builds get to each step)

  9. How much fee revenue can we expect here?

    1. Gitcoin (the first app built on Allo) did $10m in GMV in 2024, and $1m in revenue.
    2. Our baseline expectation is that each build can take 20% for R&D at first, and that will decay to 4-5% once a build hits maturity.
    3. 1% protocol fee + 4% service revenue.

  10. How do the pillars of Allo work together?

    1. Media/research arm mines clout and intel, creates ze category.
    2. Software team build Prototypes
    3. Fund funds stuff.

  11. Is Allo a venture capitalist, venture studio, incubator, or accelerator?

    1. Allo DAO is a venture studio & accelerator.
    2. Allo Fund is a VC.

  12. What is our sustainable competitive advantage?

  13. Initially, its bootstrapped from Gitcoin’s rep, Owocki’s rep, and PL/Mesh network.

  14. As our network builds, I think its going to be the strength of the network / network effect.

  15. What builds are we excited about?

  16. Tachyon

  17. Deep Funding

  18. OSO

  19. Butter

  20. Revnets

  21. New cool stuff build on SimpleGrants

  22. Civic Trust

  23. What intelligence/research directions are we excited about?

  24. Can we replace the EF with onchain capital allocation? Can we enshrine PGF in Ethereum?

  25. Cartographying the “public goods legos”: builds, builders, mechanisms, etc

  26. Building reusable tools to accelerate builders.

  27. Mobile capital allocation

  28. Applying Deep Funding to new domains

  29. Upcoming Allo Books

    1. Community Currencies
    2. AI Agents
    3. Indigenous capital allocation

  30. Is the vibes we are settingin ocmmunity compatible with this path?

    1. Esp: what cost structure can this bare? How much $$ do we have for full time, part time team, or network participants after launch?

  31. Kevins goal is to “create a new meta” like YFI or AI16z did. How does this do that?

    1. It creates new ways for builders to get funding. Which them propagates outwards to everyday web3 citizens as their builds generate funding to everyone else.
    2. The new meta for PGF builders is now to actually build their thing :slightly_smiling_face:

Disclaimer: This post is for informative purposes only and is not financial advice. DYOR, do not make any financial decisions based on these posts. In addition: I own crypto assets like ETH, DAI, USDC, and GTC.