OpenChat has impressively garnered $5.5 million in under five hours through a fundraising effort that was spearheaded by the community.

As per the details given by Metaverse Post, OpenChat’s fundraising initiative was completed in less than five hours, involving 2,375 contributors who collectively committed 1 million ICP tokens. decentralization sale Functioning similarly to popular messaging platforms like WhatsApp and Signal, this decentralized app (dApp) includes a notable feature: its integration with the Bitcoin network, which allows for peer-to-peer (P2P) BTC transactions without the need for wallets. Users can also create their own communities in OpenChat, controlling membership, much like a Slack or Discord setup.

The decentralized sale of OpenChat quickly hit its funding goal of 1 million ICP within a day of launching, with the sale originally intended to run until March 17 or until the target was met.

An announcement from OpenChat reveals that the platform will establish itself as a true Decentralized Autonomous Organization (DAO) following the successful fundraising, managed by its shareholders. This transition is made possible through the use of a Service Nervous System (SNS), a novel DAO framework brought forth by the DFINITY Foundation, allowing developers to hand over control of their dApps to decentralized management systems through such sales.

What sets an SNS DAO apart is its capacity to surpass merely overseeing smart contract functions to actively manage the entire dApp. Token holders not only have the right to propose changes but also vote on them, including modifications to the application’s code. Upon community consensus, the SNS autonomously implements the changes, ensuring seamless updates without centralized intervention.

Matt Grogan, a co-founder of OpenChat, expressed his enthusiasm for this new opportunity to empower users and ensure the platform's resilience. He emphasized that the SNS model embodies vital blockchain principles like inclusivity, transparency, user-friendliness, diversity, and accessibility.

The governance of OpenChat's platform will be shared among holders of its new governance token, CHAT. The recent funds raised will be stored in the DAO's treasury, granting CHAT holders a say in how these resources are allocated.

The SNS initiative by OpenChat is a notable fundraising model aimed at community-driven support that could reshape the web3 ecosystem. With traditional VC funding models facing scrutiny, these community-centric fundraising efforts are essential for startups in the space. By adopting decentralization sales, web3 developers can cultivate independence and strengthen the bonds within their communities.

As the web3 landscape evolves, community-led fundraising methods are emerging as a crucial vertical. Recently, Here Not There Labs secured Series A financing to facilitate the creation of decentralized online spaces. dwindling Stability AI raises a whopping $101 million, achieving a remarkable valuation of $1 billion.

Web3 social Toxic Skulls Club NFT collection has introduced Chambers, a unique rewards program designed for its holders. raised $25 million Magic Labs has rolled out innovative solutions aimed at enhancing the experience for new web3 users.

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• Cindy, a journalist at Metaverse Post, focuses on topics like web3, NFTs, the metaverse, and AI, often conducting interviews with industry leaders. Having engaged with over 30 executives at the C-level, she brings valuable perspectives to the audience. Originally from Singapore, Cindy now resides in Tbilisi, Georgia, holding a Bachelor's in Communications & Media Studies from the University of South Australia and boasting a decade of experience in journalism.
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