Operational Costs and Fee Breakdown

The fees we charge are essential for covering operational expenses, including server and network costs, as well as marketing and research efforts to identify lucrative investment opportunities for basedVC.

Our fees comprise two components:

  1. 10% Haircut Fee: This is integrated into the token price.

  2. 5% Carried Fee: We take a 5% tax on tokens as they vest.

Comparison with Traditional Venture Capital Funds

Traditional venture funds, such as a16z and Sequoia Capital, usually implement a fee structure including a 1-3% annual management fee and a 20% carry-on fund profits. While this 20% carry can incentivize high returns, it also significantly reduces the investors' potential take-home profits.

In contrast, Citizen Capital adopts a simpler, more transparent fee model, ensuring that investors retain a larger portion of the profits from investment liquidations.

Fee Impact on Investment Returns

Under basedVC's structure, the 5% carried interest on tokens is a 5% tax. For example, if you receive 1000 tokens upon vesting, we will take 50 tokens as a tax. This is considerably less than traditional venture capital funds which typically take a 20% carry on profits.

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