Proof of Use? Civil Believes This ICO Model Lets It Sell Anyone Tokens Legally
Civil, the block-chain founder who confuses the media, will provide cryptographic tokens to all types of investors who are not authorized and will be certified next week.
As a story about ConsentSys, the ethereum incubator and the business itself, that decision now meets most of the common wisdom about token sales.
Many malicious early coin offerings (ICOs) have attacked everything from the ethereum price down to anything that had recently had difficulty gaining industry-acquired trust before the light was created around thorium.
The original idea of funding a new distributed platform for those who want to buy and sell a cryptographic token in advance, depending on what rules the SEC and other regulators are discussing, have. Some decisions need to be made to protect investors.
Because of this, this year's founder, especially the US-based founder, has only raised money from people who are defined as securities regulators that are reputable investors, those who are wealthy enough to face serious risk.
So the citizen choice to open civil sale to anyone and anyone can appear to be a good way to cause problems.
"There are many things that will sustain me at night, but there are many uncertainties beyond working with uncertainty in this uncertainty," Civil CEO Matthew Iles told CoinDesk.
This statement is related to Civil's idea that ConsenSys has the right framework to implement open token sales, the token framework created by Brooklyn Project.
This framework was announced on September 7 and has already been used in the hotly anticipated distributed world map project, FOAM.
It is not quite as explicit as the recommendations and discussion points. For example, Civil requires the token owner to join the network before the coin is sold according to the instructions.
Speaking of this idea, Iles told CoinDesk:
"On the first day of network launching, people will learn to vote with their tokens, train with dumps, and provide an easy way to prove during training, use that token and unlock it."
Do not use guesswork.
The first way for Civil to move its token sales beyond guesswork to actual use is to say that the sale is for "reaching" users within the registration.
Participants must complete a quiz that demonstrates their knowledge of how cryptographic tokens and block chains work as part of the onboarding process through Token Foundry.
Buyers also can not sell tokens in their wallets until their wallets show their usage levels, and citizens call them "proof of use." In this way, the holder demonstrates some understanding of the protocol. Smaller buyers should use 25% of the tokens on the platform, and large buyers should use 50% to sell tokens or split free.
After the token holder is sold, the private protocol should be ready soon so it should not be difficult for the token holder to participate. Unlike many token entrepreneurs who do not build protocols and raise money to sell tokens, they have seen money as a way to pay development costs.
But according to Iles, Civil is focused on creating a new business model for journalism.
And it means inviting everyone interested in journalism not only to participate in the project, but also to have a platform from which they can participate.
"I think that moving the most to us is an effort to build the right kind of community that empowers me to do this and that means finding ways for ordinary people to participate."
Last year, a $ 5 million venture funded from ConsenSys Ventures, this token sale targeted $ 24 million by selling 140 million tokens for $ 34 million. This sale will run from September 18 to October 2 (or until hard cap is reached), and the private protocol will soon be implemented.
The soft cap is the amount that the company has to attack to cross the ICO, which is $ 8 million.
The new framework will debut under harsh market conditions.
It is unclear whether the buyer still wants to bury the cryptographic token as the Crypto market collapses, especially as ETH (the base currency of the Ethereum where the Citizen Token is stored) dramatically declines.
Civil can still be attractive because of the immediate availability of tokens.
Once you have a token, you can process the token in a number of ways.
One can start a newsroom. The user must start one token starting with 1,000 tokens. Any newsroom written according to the protocol must comply with the citizens' constitution for ethical journalism and must be registered in the token-based registry.
Already a variety of newsrooms have been published, ranging from local journalism to cultural coverage.
One of the biggest startups to date is that we are partnering with APs for content licensing.
After the newsroom is launched, the token holder can challenge any newsroom in the newsroom at any time. However, token holders will have to walk a lot of tokens. Other token holders can vote on tokens in these challenges.
Soon, users should be able to tip writers or pay for other services in the newsroom of private tokens.
Under the hood, Citizen protocols are also posted in the etherium block chain, so it is also helpful to keep and set the originals of specific content. This mechanism is promoted as a solution for the messy licensing environment of the Internet.
In other words, a fairly large sample size is required in every experiment to understand whether the hypothesis works. That's why citizens have to sell to more people. At the time of this writing, TokenFoundry represented 1,510 stakeholders in the sale of citizens.
Useful and compliant
While Civil White Paper was released last summer, Iles waited for CoinDesk to raise money until the company had a protocol to show.
According to Iles, the final year of the building felt like a "dead sprint."
At the same time, another Consensus-related project, the Brooklyn Project, sought to find an approach that believes that it can study securities laws and justify selling public tokens to ordinary people.
Pat Berarducci of Consensys Legal, one of the lawyers who helped write the guidelines, told CoinDesk:
"Traditionally, security laws do not generally apply to the sale of consumer goods of many types of consumption."
But it is important to use priorities to predict it, but it is another way to convince regulators that the logic applies.
Whether the regulator agrees with this approach is unclear. And this means that civil engineering companies (and other companies that use the framework) are taking significant risks. Entrepreneurs should consult with entrepreneurs when the regulator sells tokens and waits until the regulator takes action, or when the court regulators expel them.
But Iles says, "Not only can we approach the hope through an approach like ours and others, but more importantly, it can be useful and valuable to people."
And if nothing else, the law line that repeats everything to facts and circumstances has something to point out again in the Brooklyn Project framework.
Berardducci said, "The project (lawyers, regulators, policy makers as well) took about eight months to develop a framework that can be thought through important issues and important themes.
Berarducci concluded that CoinDesk identified some of the loudest voices in the industry, even if it did not.
"We still have a lot to learn and there are still lots of experiments."
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CoinDesk, a leader in block-chain news, is a media outlet that pursues the highest standards of journalism and adheres to strict editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in cryptocurrencies and block-chain startups.
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