Cody McGrath 
Delphia, an algo-adviser startup has concluded a $60 million funding round as it prepares to launch a new data-focused decentralized autonomous organization (DAO).
Multicoin Capital, a crypto-focused investment fund, led the Series A round, which also included Ribbit Capital, FTX Ventures, Valor Equity Partners, FJ Labs, Lattice Ventures, and Cumberland.
The cash will be used by Delphia to develop a new rewards token and extend the ways in which users may contribute data to computational models that will improve investment returns.
Data DAOs, according to Tushar Jain, co-founder of Multicoin Capital, employ user-owned data to benefit all contributors within the business. Delphia will use data provided by users to improve trading algorithms that directly manage their money as an algo-adviser.
“Data contributors are rarely rewarded for their contributions […] because they don’t have a right to the value created by aggregate data, nor do they have the authority to control how their data is used,” Jain explained. “This leads to a massive leap of faith in the aggregator—which, unfortunately, has been violated many times.”
“Data DAOs alleviate this imbalance by giving data contributors clear economic upside in the aggregate data as well as the capacity to regulate it,” according to the authors.
Long-only actively managed strategies are available on Delphia’s investment platform. Users can start with a $10 investment and obtain access to a diversified portfolio of unique stocks.
DAOs have grown up in a variety of methods to provide people with community access without the need for hierarchical control. National governments have taken notice of DAO structures as a way to stimulate project formation and development within their own boundaries.
DAOs, according to proponents, encourage the long-term viability of crypto initiatives by giving consumers a direct stake in their growth.