Common Wealth Update 2025
Good morning/evening
Back in March 2024 I was grinding to earn an airdrop of WLTH tokens, but I ended up doing quite well and ended up with a slice of the pie or in other words a free $1000 investment. Just over a year after receiving my investment, how is it doing? But first a quick overview for those who don't know about Common Wealth or what it is.
What is Common Wealth
Common Wealth is a Web3 investment platform designed to democratize early stage investing in crypto. It runs what it calls the “Free VC Fund,” an on chain, always liquid venture capital fund with no management fees. Instead of raising money from investors directly, the fund distributes “slices” as NFTs to participants who complete gamified tasks. These slices represent fund ownership, and winners from the launch event received allocations worth thousands of dollars, while runner-ups shared over $1 million in rewards. The model aims to level the playing field and allow retail investors to participate in opportunities that were once reserved for VCs. They also opened up an Alpha Fund that you could buy into.
What is the Wealth token
At the center of the ecosystem is the $WLTH token, an ERC-20 token launched on Base. The team renounced ownership before the IDO to emphasize decentralization, and the token has a max supply of one billion. One unique aspect of $WLTH is its 1% royalty fee on transactions, which flows into a community managed fund. Holding and staking the token provides direct benefits, including governance rights, access to rewards, passive income, and reduced carry fees on investment returns, you can reduce fees by up to 80% if you stake the maximum tokens for the longest time frame, I did not stake any tokens.
What are the projects that were invested in?
There are still a few projects in the fund that are still Pre Launch, showing the price per token paid just over 1 year ago, and one project, a game called Nyan Heros that has failed completely and is no longer in the fund.
New Projects to invest in
Common Wealth recently added 2 new projects to invest in but I have been busy and took my eye off the ball (well we all need to touch grass) so I missed out as they reached the max tokens available to buy very quickly. I may well have thrown something in for a punt if I had not missed it, but this is crypto and there is always something new to invest in. I will be back in full crypto mode soon so will be able to really take the time to be ready and prepared for Q4, whatever that may bring.
There are other new projects that you can now invest in and I guess they will keep adding more, I thought I might take a punt at the Kraken one but then I saw this, 'Residents of the U.S., UK, EU, and other restricted jurisdictions are ineligible'. Well that does not leave many countries that can invest, and yes I know there are ways around this and if I really wanted to do it I would, but it is a shame that there are that many exclusions in the first place.
Tokenised Economic Right (not equity) to potential future liquidity from WLTH’s (WLTH CORP) equity ownership in the Crypto company Kraken.
Investment Highlights
• Structure: Tokenised Economic Right linked to WLTH’s allocation in tKRAK equity.
• Standard: ERC-721 Slice token, fully tradeable.
• Secondary liquidity: Tradable on WLTH’s Slice Marketplace.
• Distributions: Any exits, secondary sales, or future liquidity events automatically distributed in USDC to holders.
How is my 'investment' doing?
Well I can claim my rewards monthly and so far I have claimed $121, so around 10% per year, which is a much better return than the child trust fund from the UK government that I have written about!.
The actual investment of $1000 is down just over 30%, but then so are a lot of ALT coins at the moment, some are even worse so I will see how this plays out if/when we have an ALT season. I can/could sell my 'slice', some have them for sale, but as it was technically free, I thought I would let it run a bit longer and see what happens, but if it does all go up, then yes I may well sell it. I don't even follow all the projects within the fund to actuall see if any of them are long term keepers.
All in all, I have not really spent any more time on Common Wealth after the initial period, I did no staking and have invested $0 and don't really follow it that closely, so to still be claiming rewards is quite surprising. Will I sell my investment? Possibly if we have an ALT season, because I can't see this doing much during the bear market to be honest and I hope to sell almost all of my ALTs and start fresh next cycle.
Over the same period since I got my WLTH slice, Bitcoin has more than doubled, Ethereum is up nicely too, while plenty of altcoins are still down 50–90% from their highs, so in that context a 30% drawdown with a 10% annual yield doesn’t actually look too bad. It shows how tricky it is to judge these kinds of investments in isolation because crypto markets move in cycles and timing is everything. If we get a proper alt season, returns could flip quickly so I will need to pay attention and be prepared.
What do you think? Would you be happy getting an annual 10% return from a free investment? Would you hold it during the bear market? As always, thank you for reading and feel free to share your thoughts in the comments.
Previous article about Common Wealth.
https://www.publish0x.com/a-foray-into-crypto-a-technophobes-journey/commonwealth-free-vc-fund-xevzmnr
