The Krause House intends to gather funds to buy an NBA franchise. These efforts have netted the group roughly $4 million in ETH, which is about 0.3% of the cheapest NBA franchise, the Memphis Grizzlies.
Selling NFTs on Mirror for access to its Discord Server and Ethereum token KRAUSE, the group raised $200 in the first 15 minutes.
The three levels of membership in Krause House are Courtside (10 ETH), Club Level (1 ETH), and Upper Level (0.1 ETH), with Courtside offering the greatest level of access and the highest allocation of KRAUSE tokens.
The number of Krause tokens represents a member’s governance stake. The DAO had raised 1000 ETH from NFT sales as of this writing. Flex Chapman and Commodore, two buddies, founded Krause House.
Will the NBA join in?
This current endeavor, named for the late Chicago Bulls manager Jerry Krause, has almost 2,000 members.
The DAO has published a “flightpaper” outlining its plan to allow fans to acquire a stake in the club (similar to stock ownership) and vote on club matters.
The NBA may not approve of this kind of governance or ownership, according to Krause House. Faceless organizations are uncharted regulatory and legal areas.
Because Sotheby’s doesn’t currently allow DAOs to bid in auctions, ConstitutionDAO had to work with a crypto-exchange to bid for the rare document.
After a $40 million bid, ConstitutionDAO lost to Citadel chief executive officer Ken Griffin for a rare copy of the US Constitution.
Ownership Models Krause
These include Majority Decentralized Ownership, Minority Decentralized Ownership, and Minority Decentralized Ownership (DAO).
The first is where “majority rights” (more than 50%) to a team may be purchased on-chain. DAO members would have input on ownership, team location, important leadership candidates, marketing, and events.
The DAO owns minority ownership in the team and has some say in matters like team location, marketing and event planning, and executive hiring.
The NBA may accept the second minority ownership option over the first, according to Krause House, since they will not allow a faceless entity to possess a majority stake in a team, regardless of the cash value.
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