Revenue Model

The revenue can broadly be categorized into the following streams:

Success Fees

This is the key source of revenue for ZIGDAO Protocol, guaranteeing fair means of monetization for investors and fund management. ZIGDAO charges a small percentage of the return (5-15%, depending on the circumstances) that is generated by the fund manager for the investors. ZIGDAO is fully optimized for this source of revenue and, therefore, able to innovate with more sub-sources to generate further success fees. A significant portion of this revenue stream will be used for buyback & burn of ZIG Coin.

Across ZIGDAO implementations, we promote a 'high watermark base’, ensuring no success fee during loss recovery. Supposedly, an investor's high watermark is their initial $1,000 investment. They pay Success Fee only if their balance exceeds the initial $1,000, due to a profit. Going forward, assuming that a $100 profit is added to the account, the new High Watermark level is established at $1,100. Then, the success fee applies only if it exceeds this amount ($1,100 in this case).

White Label Solutions (Z-Prime)

Under the Z-Prime initiative, ZIGDAO has received significant service fees to develop and deploy solutions for larger fund managers & third-party platforms. There are two types of service fees, a one-time fixed paid mostly at the deployment and a recurring monthly fee associated with the usage of these deployed white-labeled solutions.

Treasury Management

ZIGDAO Treasury manages a diverse portfolio with unutilized project funds, generating revenue. The key point to understand is that the funds are managed in a secure and risk-averse style, with 0 exposure towards the customer funds at any time. This sets the foundation for ZIGDAO's treasury, open to platform stakeholders in the future.

Trading Fees Rebate

Through our Binance Broker Partnership, ZIGDAO receives a portion of the trading fee generated through the ZIGDAO ecosystem. However, it is important to understand that ZIGDAO doesn't optimize for this revenue stream and focuses on the initiatives that directly benefit the yield generation for the investors.