Congrats! You have created a web3 investment club! If you need more information, see the detailed step-by-step guide below.
1/ Club Name & Club Token Ticker
The name & ticker of the club cannot be modified once the club is created.
The name of your club and the ticker of your club tokens are publicly available information on-chain along with transaction data. So, if privacy is important, when choosing a name for your investment club and club token, consider using a code name or the random name generator.
2/ Club Tokens
The club's tokens are non-transferrable ERC-20s that represent the ownership cap table of the investment club, and they can be used for snapshot voting, coordination, on-chain governance, and much more.
For ETH-based clubs, the number of club tokens created is proportionate to the amount of funds deposited into the club (i.e., 1:10,000 ratio of ETH : Club tokens).
For ERC20-based clubs, the number of club tokens created is equal to the amount of funds deposited into the club (i.e., 1:1 ratio of ERC-20 : Club tokens).
3/ Club Size
The club size is the amount of USDC or ETH deposit you expect to raise for your investment club. You can set any amount during the creation process. Some of our users choose a higher number in anticipation of raising additional capital than they plan for and this does not affect the characteristics of how the club can be created or managed. This can be altered after the creation of a club, but changes require an on-chain transaction with gas fees.
The club size is the total amount the club expects to raise and not the initial amount. It is better to set a larger amount if you are unsure of the total amount at the time of creation.
4/ Deposit Duration
The admin sets the duration during which the club can accept deposits. This can be altered after the creation of a club, but changes require an on-chain transaction with gas fees.
We recommend that you set a deposit period longer than you expect to collect all of the funds and give your club some buffer. Do not choose the date the club is created as the club will close to deposits at the end of the day.
That said, users may find it more convenient to have shorter fundraising periods to easily track ownership of club assets and simplify distributions to club members. If you'd like to welcome members over a longer time horizon, you might consider setting up multiple investment clubs for each cohort (e.g. one club per month) that members could join on a regular basis. Syndicate recommends that all investment clubs consult with their own tax and legal counsel to determine the best structure for their particular situation.
5/ Member Size
An investment club cannot have more than 99 members. It is a legal limit outlined by the SEC here. The admin sets the maximum number of members when creating the club—this can also be altered after the creation of a club, but it requires an on-chain transaction and gas.
Next, if you'd like to create a legal entity, please see the options available on the next page.