# What is Tornado Fund?
Tornado Fund is another piece in the quest to decentralize Tornado Cash and to ensure that the project is supported by the community and remains vibrant. Tornado Fund allows Members to pool capital and invest in the software company behind the Tornado Fund protocol, PepperSec, Inc. (the "Software Company"), so that they can develop version 3 of the Tornado Cash Protocol. Funding will be used to pay for software development and other operational costs.
The fruits of this effort will be the launch of version 3 of Tornado Cash, which may introduce (and there are no guarantees) a protocol level token to govern aspects of the Tornado Cash network. If version 3 of the Tornado Cash Protocol involves a token, the launch will be accompanied by the creation of a community owned and operated TornadoDAO—an evolution of the TornadoFund—which will serve a locus for Tornado Cash governance, potentially hold ether, and continue to direct the future of the Tornado Cash protocol.
Under such a scenario, The Tornado Fund (a proto-DAO) will evolve into a fully decentralized DAO that helps ensure that protocol developers and other early supporters of protocol can continue to fuel network development without centralized control. With the launch of Tornado Cash version 3, the entire network and protocol will be decentralized and entirely community driven. The future of Tornado Cash will be in the Ethereum community’s hands.
Tornado Fund is organized as a legal entity (a Delaware limited liability company) primarily administered via an online application (a "DApp") and related smart contracts. Details about the Tornado Fund's legal structure, how it will invest in the Software Company, and the funding process are outlined in these FAQs. Please read them carefully before becoming a member of Tornado Fund.
# Relationship of Tornado Fund to Tornado Cash
Tornado Fund is part of the Tornado Cash ecosystem. Initially, Tornado Fund intends to serve as community supported way to provide financing for the underlying Software Company behind Tornado Cash. Over time, we imagine that Tornado Fund could potentially serve an investor (or provide grants to) other organizations adjacent to or related to the Tornado Cash protocol (e.g., privacy preserving wallets or other services that make it easier to incorporate Tornado Cash).
Members of the Tornado Fund are not responsible for the Tornado Cash team or protocol and will not operate (at least initially any Tornado Fund relayers). The Tornado Fund is managed by the Members to make decisions in investing in, growing, and potentially governing the Tornado cash ecosystem.
# Terms of Investment in Tornado Cash
By joining, the Members of Tornado Fund are agreeing to devote, at least a portion of the pooled resources, to the Software Company behind Tornado Cash to enable them to continue to build software related to Tornado Cash. The initial investment will be an equity investment in the software company set up by these developers (PepperSec, Inc.) via a convertible note that provides the right for the Tornado Fund to receive a pro rata portion of any proceeds from tokens reserved by the creators of Tornado Cash, if they decide to create a token, and assuming regulatory compliance.
THE INVESTMENT IN THE SOFTWARE COMPANY MAY NOT RESULT IN THE RETURN OF ANY TOKENS. TORNADO CASH CURRENTLY DOES NOT HAVE ANY NATIVE TOKEN AND VERSION 3 OF TORNADO CASH MAY NOT INCLUDE A TOKEN.
# Will Tornado Cash Have a Token?
As described further in the next section, the Software Company that created Tornado Cash intend to explore creating a token for the Tornado Cash ecosystem. However, Tornado Cash may never have a token. You are investing in Tornado Fund at your own risk.