On The Chain – Live Interview with Zao DAO: Fabio Marzella & Santiago Velez

Date: September 20, 2025 | Hosts: Chip & Jeff
Guests: Fabio Marzella & Santiago Velez (Co-founders of Zao DAO)
Primary Focus: An in-depth exploration of Zao DAO, its purpose, structure, vision, and how it aims to empower the XRP Ledger developer community and investors.

Overview: Episode’s Main Theme

This episode of On The Chain brings together two pillars of the XRP and blockchain space—Fabio Marzella and Santiago Velez, co-founders of Zao DAO—for a deep-dive into their vision for a transformative, decentralized, community-governed entity built on the XRP Ledger. The discussion centers on making developer funding, project exposure, and community-driven investment accessible, transparent, and sustainable—without introducing a new governance token, but instead leveraging XRP itself at the heart of their model.

Key Discussion Points & Insights

1. What is Zao DAO?

[03:55, Fabio]

• Purpose: “Zao DAO was developed because we saw a need for developers to have a hub where they could showcase projects and proposals—to get noticed by both the community and potential venture capitalists.”
• Problem Solved: Developers lack a centralized, friendly way to present their work; VCs struggle to find promising opportunities in the XRPL ecosystem. Zao DAO creates a matchmaking platform for them.

[04:53, Santiago]

• After the Ripple vs. SEC lawsuit, the immense power of the community was obvious: “We said, okay, this is a really powerful force that needs to be harnessed…supporting the devs, development, investment, marketing, communications.”

2. Why ‘Zao’ DAO? What Does the Name Mean?

[06:18, Fabio]

• “It’s a Chinese word. Zao virtually means ‘new ventures’ or ‘exciting outcomes’—fitting for what we wanted to provide to the community.”
• [06:53, Jeff] adds that in Vietnamese, it signifies “brightness or radiance.”

[07:01, Santiago]

• “We’re gonna use that [Vietnamese meaning]!”

3. Long-term Vision & Expansion

[07:44, Fabio]

• Asserts the DAO’s flexibility and growth potential: “It’s infinite…initially via membership, but the DAO might also become partners in projects, generate income, even help organizations outside our ecosystem use Zao DAO governance.”

[08:39, Santiago]

• Stresses member-led direction: “Fabio and I started off as managers, but we really won’t be the ones deciding the direction. We just offer suggestions and lead.”

[09:07, Santiago]

• It’s a for-profit legal entity (LLC, Wyoming), aiming for value accrual for all members.
• Zao DAO intends to:
  • Take investment positions in XRP Ledger projects (shared upside with the community)
  • Put XRP to productive use (yield, collateral, etc.)
  • Serve as a cross-chain catalyst, onboarding other blockchain communities
    “We want XRPL to be out front, supporting other networks. This could be huge.”

4. DAO Revenue, Token Model, and Governance Without a New Token

[11:34, Santiago]

• “There’s over 10,000 tokens out there. We don’t need a new one—we have XRP. That’s the token of our community, for governance and value accrual.”
• Voting mechanism: Rather than selling a governance token, membership and voting are directly tied to your XRP holdings.

5. How Does Membership Work?

[13:08, Fabio]

• Membership is $10 USD equivalent (in XRP), paid via the Zao DAO website.
• Upon joining, an NFT is minted to your wallet—this NFT represents membership and governs voting/profit-share eligibility.
• “We never touch members’ wallets or take custody of XRP.”
• “Membership is pseudonymous—no need to reveal your identity unless withdrawing profits.”

[14:34, Santiago]

• The DAO is an LLC in Wyoming. Members are legal co-owners—like shareholders—with all attendant property rights.
• Voting power is determined by scanning the XRPL prior to each vote for member wallet balances.
• All governance is executed on the XRPL EVM sidechain (for transparency and audibility).
• “We want you to see your vote on chain.”

6. Revenue & Investment Flow

[18:08, Fabio]

• Initial funds are from membership fees; long-term sustainable revenue comes from a planned ‘Zao Hub.’
• “The Zao Hub will match developers to marketers or VCs, agnostic to blockchain—it’s open to the whole ecosystem. Matchmaking incurs a fee, benefiting the treasury.”

[20:44, Santiago]

• Project investment follows community-driven governance: anyone can submit a proposal; the membership votes on funding/terms.
• If the DAO invests, “it can take a stake in the project, or give a grant, or both; the rewards benefit all DAO members.”

7. Proposal, Voting, and Yield Mechanisms

[25:30, Fabio]

• Voting: Minimum 1 XRP = 1 vote, but with a cap to prevent whale domination.
• “We need 51% YES votes of active voting power for a proposal to pass.”
• All terms for project deals would be community-set or templated for efficiency.

[30:20, Santiago]

• The NFT in your wallet is what connects you to your share of governance and profit.
• Payouts—if the DAO generates profit—are distributed to members in proportion to their XRP held (with an upper cap).
• “It’s a pass-through legal entity—profits flow to members, unless the community votes to reinvest.”

[37:06, Santiago]

• “Our goal is value accrual to XRP and the ecosystem, not direct investment from members—to avoid regulatory risk. But the legal framework allows for capital contributions and direct deal structuring if the membership wants.”

8. Security, Custody, & Member Control

[42:48, Fabio & Santiago]

• “Zao DAO will never ask for or touch your XRP. The NFT in your wallet is all we need. All custody stays with members.”
• Zao DAO is not a wallet or exchange; it simply integrates with existing wallets (Zen, Bifrost, etc.).
• Santiago: “We’ve had our code independently reviewed. When you pay your membership, you sign a transaction yourself. Every other time you interact (e.g., voting), you must sign—100% control is yours.”

9. Legal and Technical FAQs

[52:12, Fabio & Santiago]

• Gifting/transferring the membership NFT is not currently supported; in case of inheritance or legal events, assistance is offered via standard legal channels.
• You can have multiple memberships across wallets, but only one can receive profit distribution after KYC/AML verification.
• Anti-whale and anti-spam measures: membership is $10 per wallet, voting/profit share capped to discourage gaming the system.

10. Launch Timeline

[49:48, Fabio]

• App is in final stress-testing. Target is end of the month, barring unforeseen technical issues.
• “We’re at the finish line. One or two months max if major issues arise.”
• Back-end infrastructure (AWS, XRPL mainnet, EVM sidechain, IPFS for proposal storage) is complete.

Notable Quotes & Memorable Moments

• On purpose:
  “Whilst there’s a lot of great developers out there and great projects, they don’t know exactly where to showcase this… Venture capitalists did not know what kind of project they could invest into. So Zao DAO will act as that hub.” (Fabio, [03:55])

• On DAO governance:
  “Fabio and I, we started off as managers, but we really won’t be the ones deciding the direction… we want this to be driven by the community.” (Santiago, [08:39])

• On avoiding a governance token:
  “There’s over 10,000 tokens out there, maybe more. We don’t need a token. We have XRP—that’s our community token.” (Santiago, [11:34])

• On user security:
  “The DAO will never ask for or touch anyone’s wallet. That’s why we issue the NFT. There’s no way in the world Zao DAO can physically touch or even know what’s in your wallet.” (Fabio, [42:48])

• On legal standing:
  “This is real world asset ownership—being a member of the DAO is like owning a piece of the LLC. And you get a copy of the operating agreement: how the DAO is run, profit sharing, all your rights. It’s an asset in your estate.” (Santiago, [27:45])

• Community engagement:
  “If you want your proposal to pass, you need to advocate for it—engage with the community. We want a vibrant, active conversation.” (Santiago, [48:31])

Lightning Round – Personal Fun

• Favorite movies:

  • Santiago: “Godfather II… Predator” ([58:03])
  • Fabio: “Top Gun… and all James Bond movies” ([58:26])

• Apple or Android?

  • Fabio: “Apple”
  • Santiago: “I’m 100% Android guy.” ([58:52])

• Pineapple on pizza:

  • Fabio: “Crime.”
  • Santiago: “I acknowledge it’s a culinary crime, but I love it.” ([59:14])

• Coffee or tea?

  • Both: “Coffee—espresso.” ([67:28])

Key Timestamps

• [03:55] Fabio’s 50-foot view of Zao DAO
• [06:18] Explanation and etymology of ‘Zao’
• [07:44] Long-term and infinite vision for Zao DAO
• [11:34] Decision to avoid a governance token; use XRP itself
• [13:08] Membership structure, the use of NFTs, and wallet integration
• [14:34] DAO’s Wyoming LLC structure and member rights
• [18:08] Revenue model and the coming Zao Hub
• [20:44] Project investment process and proposal voting
• [25:30] Voting rights and anti-whale mechanisms
• [30:20] Profit payout structure, NFT as proof of membership
• [37:06] Regulatory positioning and capital contribution framework
• [42:48] Security: DAO never touches user XRP
• [49:48] Launch timeline
• [58:03–74:09] Lightning round: movies, pizza, coffee, etc.

Where to Follow & Next Steps

• Website & Waitlist: zaodao.io (sign up with your email)
• X (Twitter): @zao_dao
• All links and social contacts are provided in the episode comments/description.

Closing Remarks

Fabio and Santiago emphasized Zao DAO’s mission to provide developers and the broader XRP and blockchain community with a trustworthy, transparent, and innovative platform—grounded in legal rigor and community control—for fostering new projects, connecting capital, and sharing value.
“Thank you guys for having us. Looking forward to building something that will grow for the whole community.” (Fabio, [76:48])

Stay tuned for further updates as Zao DAO prepares to go live and invites the XRP community to actively participate in its next evolution.

End of summary.