expiry and redemption

expiration

All DAOs have a set, on-chain expiration date which is displayed on their daos.fun page — you can select the desired length of a DAO during DAO creation.
Eventually, governance will be introduced to allow voting to extend the expiration date of a DAO.
When a DAO expires, no more transactions can be executed from the daos.fun treasury wallet. The DAO funds will be locked.
The DAO token will continue to trade freely on Meteora.
Set a calendar reminder for this date to ensure your fund is ready before expiry.

DAO tokens are redemption tokens — when a DAO is expired, they can be burned to redeem treasury assets once a DAO expires.
All SPL tokens in the DAO can be redeemed prorata.
- E.g. if you own 1% of the DAO tokens, you can redeem 1% of the SOL, WIF, POPCAT, etc in the DAO.
- There is one exception — the DAO’s own DAO token cannot be redeemed. E.g. I cannot redeem $GFC by burning $GFC — even if it is present in the DAO.

When the fund expires:
- A snapshot is taken of the AUM’s assets.
- Only assets present in the AUM at the time of the snapshot are eligible for redemption.
- Tokens sent after expiration are not redeemable.
Best practice is to sell non-SOL tokens into SOL before fund expiry.
- Similar to how a fund manager would liquidate assets before closing. This ensures that a Creator will be able to receive their Carry %.

The carry is a percentage of DAO profits that the creator gets to keep.
The creator gets the carry on the profit that they generate in the DAO.
E.g. If the DAO starts with 100 SOL, and ends with 150 SOL, the prift is 50 SOL. If the creator carry is 20%, then they get 10 SOL as the carry (20% of 50 SOL is 10 SOL).