> For the complete documentation index, see [llms.txt](https://docs.trenchesai.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.trenchesai.com/dao-fund-structure.md).

# DAO Fund Structure

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## **📊 Potential Earnings: Holding a Tier 1 NFT**

Here’s a breakdown of three potential outcomes for NFT holders **Conservative**, **Realistic**, and **High-Performance**, based on different levels of annual ROI and fund growth.

### **Assumptions**

1. **Initial Fund Size**: $10M raised.
2. **NFT Supply**: 500 Tier 1 NFTs.
3. **Performance Fee**: 20% of profits above an 8% hurdle rate.

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### **Scenario 1: Conservative Performance**

* **Annual ROI**: 10% (low-risk, steady performance).

### **Yearly Fund Performance**:

* Annual Profit = 10% of $10M = **$1,000,000**.
* Performance Fee = 20% of ($1,000,000 - $800,000) = **$40,000**.
* Net Profit = $960,000.

### **Earnings Per NFT**:

* $960,000 ÷ 500 NFTs = **$1,920 per year**.

### **3-Year Projection**:

| **Year**   | **Fund Size** | **Annual ROI** | **Net Profit** | **Profit Per NFT** |
| ---------- | ------------- | -------------- | -------------- | ------------------ |
| **Year 1** | $10M          | 10%            | $960,000       | **$1,920**         |
| **Year 2** | $11M          | 10%            | $1.04M         | **$2,080**         |
| **Year 3** | $12.1M        | 10%            | $1.13M         | **$2,260**         |

**Total Earnings Over 3 Years**: **$6,260 per NFT**.

This accounts for only 10% of the performance on average—a BTC-only investing strategy out of this. RWA, AI and Gambing have seen a 400% + rise recently. 

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### **Scenario 2: Realistic Performance**

* **Annual ROI**: 20% (balanced, achievable growth).

### **Yearly Fund Performance**:

* Annual Profit = 20% of $10M = **$2,000,000**.
* Performance Fee = 20% of ($2,000,000 - $800,000) = **$240,000**.
* Net Profit = $1,760,000.

### **Earnings Per NFT**:

* $1,760,000 ÷ 500 NFTs = **$3,520 per year**.

### **3-Year Projection**:

| **Year**   | **Fund Size** | **Annual ROI** | **Net Profit** | **Profit Per NFT** |
| ---------- | ------------- | -------------- | -------------- | ------------------ |
| **Year 1** | $10M          | 20%            | $1.76M         | **$3,520**         |
| **Year 2** | $12M          | 20%            | $2.1M          | **$4,200**         |
| **Year 3** | $14.4M        | 20%            | $2.52M         | **$5,040**         |

**Total Earnings Over 3 Years**: **$12,760 per NFT**.

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### **Scenario 3: High-Performance**

* **Annual ROI**: 40% (aggressive, high-growth opportunities).

### **Yearly Fund Performance**:

* Annual Profit = 40% of $10M = **$4,000,000**.
* Performance Fee = 20% of ($4,000,000 - $800,000) = **$640,000**.
* Net Profit = $3,360,000.

### **Earnings Per NFT**:

* $3,360,000 ÷ 500 NFTs = **$6,720 per year**.

### **3-Year Projection**:

| **Year**   | **Fund Size** | **Annual ROI** | **Net Profit** | **Profit Per NFT** |
| ---------- | ------------- | -------------- | -------------- | ------------------ |
| **Year 1** | $10M          | 40%            | $3.36M         | **$6,720**         |
| **Year 2** | $14M          | 40%            | $5.6M          | **$11,200**        |
| **Year 3** | $19.6M        | 40%            | $7.84M         | **$15,680**        |

**Total Earnings Over 3 Years**: **$33,600 per NFT**.

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## **Visual Enhancement**

* Include a **bar graph** showing profit growth for each scenario over 3 years.
* Add a **comparison table** summarizing each scenario side by side.

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### **Act Now to Secure Your Tier 1 NFT**  

– Limited to **320 Remaining** at 1.2 ETH.

**Projected Returns Speak for Themselves – Don’t Miss Out!**

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