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

# DAO Overview

Traditional equity offerings drain investor value through multiple layers of fees:

<figure><img src="/files/OPDeddHA7tuoPdtXB0CV" alt=""><figcaption></figcaption></figure>

Up to USD 2,500,000 is lost before trading begins, plus the lengthy application process and regulatory overhead, with no guarantee of success.

In contrast, Royalty Token DAO disrupts this model with the following:

<table><thead><tr><th width="193">Item</th><th>Problem</th><th>Our Alternative</th></tr></thead><tbody><tr><td>Investment Banking</td><td>Expensive. Not aligned with long term investor and company interests. Often incur additional selling pressure post-IPO, inflicting losses on investors.</td><td>Performance-based vesting for financial intermediaries.</td></tr><tr><td>Market Maker</td><td>High fee and high spread</td><td>Automated market-maker</td></tr><tr><td>Legal and Audit</td><td>Expensive and slow</td><td>Real time validated data oracle and smart contract based enforcement</td></tr><tr><td>Exchange and Infrastructure</td><td>High listing fee, barrier and regulatory overhead</td><td>Blockchain partnerships and DEXs</td></tr></tbody></table>

The value reclaimed is redistributed back to stakeholders of the DAO, this creates a fairer, more efficient market where investors capture the value traditionally lost to intermediaries.