> ## Documentation Index
> Fetch the complete documentation index at: https://developer.tailwind.zone/llms.txt
> Use this file to discover all available pages before exploring further.

# intro to daos.fun

> welcome! the purpose of this document is to get you up-to-speed on the nuances in the daos.fun product. 

<Note>
  A DAO is a community with a mission and a treasury.
</Note>

<Note>
  The funds in an investment DAO can *only be used to buy other SPL tokens*. Any token available on the Jupiter API can be purchased.
</Note>

<Note>
  This DAO structure was originally designed for groups of friends wanting to trade memecoins with each other.
</Note>

### dao lifecycle

1. Users contribute funds to the DAO via a "[raise](https://docs.daos.fun/docs/example-raise)" or "party round."
2. Users receive [DAO tokens](https://docs.daos.fun/docs/liquidity) in return.
3. The creator trades the pooled assets (the [AUM](https://docs.daos.fun/docs/aum)) on-chain.
4. The DAO expires and the treasury (AUM) wallet is locked.
5. DAO tokens can be [burned to redeem](https://docs.daos.fun/docs/expiry-redemption) the DAO's assets.