03 Aug
If you ever read a newspaper article about financial or political analysis the keyword that bears most weigh is usually TRUST. That is because our entire society is build on trust. It’s the social glue that binds individuals into being a society and the glue that bonds thinkers and workers into economic enterprises.
BlockBits is both a revolution and evolution of the crypto investment / crowdfunding system. It’s an evolution of the DAO concept and a revolution to the practice of raising funds for an enterprise.
We envisioned BlockBits to be foremost a DAPP but it goes much further than that. BlockBits transforms in a DAPP almost any project launched trough it. We believe that blockchain code is the optimal method of creating smart enterprises. It has the virtue of being both virtual and real, as it can be virtually tested for all the scenarios we can think of and all those tests stand in real life.
Creative and world changing ideas can come from the most unexpected places and that is why we welcome any project without imposing fees or other economic barriers. The only value needed to launch a project is that of your work and ideas.
Just like a classical enterprise each project has bylaws. The main difference being that on the blockchain bylaws are hardcoded in the DAPPs smart contracts and this guarantees that they are irrefutable.
BlockBits token holders have unprecedented power. They can create and vote proposals and once voted they are automatically implemented. It is not a consultative but an executive vote! If a project is to be delisted from the BlockBits platform it is done so only if a token holder proposal was voted by majority.
During the course of platform development, project owners are not able to use their tokens in any way, they cannot sell them, nor can they vote on proposals.
Today virtually everyone is using a simplified and insecure version of what we have as the Direct Funding method. Besides this method, BlockBits uses an innovative type of funding, Milestone Funding, where the contributed ETH and tokens are locked into securely constructed funding vaults and only get released upon the successful completion of a project development milestone, or by investor Cash Back request in case of development failure.
Each Investor has their own separate smart contract, that stores and locks ETH and tokens until an action is available. This contract mitigates issues that can arise from hacking attempts, even successful ones, by enforcing 2 hardcoded output addresses, namely, the platform and investor wallets.
BlockBits token holders can get paid for code upgrades proposals if those upgrades are accepted by the community.
In all projects launched trough the BlockBits platform the Project Ownerscan organize an internal initial offering only available for BlockBits token holders.
As we mentioned before BlockBits has no fees required to list a project but instead has a best practice encouragement system which penalizes Project Owners that opt to spend too much of the collected ETH on anything but their project development. The same applies if they choose to use business mechanisms that create high risk for their investors. This system constitutes a revenue source for BlockBits.
Most of BlockBits revenue is spent on the Buy Back program which buys BlockBits tokens. These tokens are burned and the value of the remaining BlockBits tokens constantly increases.
The BlockBits DAPP Creation Wizard is the main step a Project Owner has to perform in order to launch a new project. After the wizard setup is completed the new project is not only listed on the BlockBits platform but it also becomes a self sufficient DAPP on the Ethereum blockchain.
As should be expected from a DAPP the Token Calculation and Distribution is just code on the blockchain that is executed transparently and automatically when needed. The algorithms are calculated in fractionary form so that complete fairness is guaranteed for the entire process!
The Bounty Program has a dedicated web application with features such as daily bonuses, referral program and activity bonuses. As with everything else the Bounty Program is integrated with the DAPP and the calculation and distribution of tokens is performed automatically.
From the inputs entered by the Project Owner in the Creation Wizard,BlockBits algorithms are automatically creating a series of risk indicators for each submitted project. These are strictly mathematic indicators based on the nature of token minting policy, accepted types of funding, relations between milestones and many others. This is made possible only because most settings in the Creation Wizard are either optional or they have many options to choose from. This way, everything in the bylaws and additional settings of the newly created DAPP is reflecting the conscious and immutable business decisions of the Project Owner.
Trust is based primarily on transparency and knowledge and that is why BlockBits opens all its code, tools and documentation to the public under MIT License.
BlockBits is an already functional and solidly tested product not just an investment proposal.
