How It Will Work

These community banks will serve as centers for sustainable economic growth by focusing on lending to local small & medium sized enterprises in an ethical manner.

Each community bank will be owned 75% by Valhalla Network and the remaining 25% split between a charity foundation and bank staff incentives.

This means each bank will allocate a significant portion of their dividends to a charity that reinvests into local, social, and community initiatives as per the DAO’s ESG (environmental, social, and governance) policy.

To meet these aims, Valhalla Network will execute two phases:

  • The establishment of a specialised for-profit bank. The bank can combine higher returns with a buffered financial model, contrary to traditional banking models.
  • The fundamental aim of Phase 1 is to act as a base to support the DAO in its early life and help propel Valhalla Network into Phase 2, the establishment of community banks.
  • We forecast the bank to begin operations 3-6 months after the token generation event (“TGE”).
  • Setup and launch of the for-profit bank will take approximately 18-24 months from date of private sale; this includes setting up the Foundation and banking entity, executing the technical solution, and the application and authorisation of a banking licence.
  • We forecast Phase 2 to begin TGE+1, after the Phase 1 bank is fully operational. Valhalla Network will build a network of community banks across the world, starting in Europe and targeting specific countries and communities with the most need. 
  • The community banks will revitalize the local economy by acting as a center of sustainable growth. A portion of all profits will go towards a charity foundation which will fund & support local community initiatives, and engage with local schools to provide financial education to teens and young adults.
  • While the community banks are set-up and become profitable, the Phase 1 bank will provide increasing cash flows to support the DAO and token holders. Eventually, there will be a consistent flow of new community banks ‘becoming profitable’ and the system will be entirely self-sustaining.