I've been contemplating this idea for a gaming project I'd like to get started at some point. I made a tweet recently mentioning that the rise of AI assistance is surely helping in making my gaming idea I've been working on for a while a reality much cheaper than initially expected. Thus I've been looking at options and getting into talks with the right people who could help getting this along. While I won't be talking about the game idea itself at this time, I wanted to discuss something different I would like to try with it compared to what currently exists in the space.
While my reputation here isn't at risk of trying to scam people, I'd still prefer to give investors more options than the current status quo. I've seen way too many projects which build a presence, give out a lot of promises and then just fade into the shadows with people's money after something didn't go right or if that was their plan all along to hype things up along with market conditions making it easier and then just let people down. cough Logan Paul cough, but not limited to him honestly.
Alright, so the idea is quite simple. Here's an example to make it even easier.
I launch project X, in project X you can invest in two ways.
You can invest with Hive or HBD directly, non-refundable. This gets you #nft's and tokens in the project.
You can invest with Hive or HBD directly, but you have an option to withdraw your Hive or HBD.
The drawbacks aren't fully calculated yet, but obviously there have to be some disadvantages compared to those investing in the non-refundable option. Those investing in option 1 would have to receive more equity than those investing with option 2 as they hold higher risk. Similarly, people could attempt to abuse option 2 so we'd have to limit it to only investing in tokens of the project rather than #nft's directly. (people could attempt to "gamble" on what kind of #nft's they "receive", ask for a return, try to invest with the same value again to get a better outcome, etc).
Short answer, Hive. Hive makes this possible due to Hive power APR and HBD APR in savings. Not many other currencies or projects out there offer similar returns for staking/lending out currencies.
Let's for the sake of this example and discussion say Option 1 gets you 70% value and immutable nft's while option 2 gets you 30% and solely tokens.
Alice invests 10k Hive in project X.
Bob invests 10k HBD in project X.
Project X now knows it has 10k Hive it can spend instantly on development, while the 10k HBD is non-final.
Project X places the 10k HBD in savings, accumulating 20% APR which it can use for development in monthly installments, thus getting some value by the non-final investors.
After a few months, Bob isn't happy with the development of the project or outcome and decides he wants his HBD back, thus a withdrawal from savings is executed and he regains his initial investment back except the APR gained and forfeits the tokens.
While the project is in development and money raised is being used to develop it, tokens aren't released to option B investors yet. The time the project is about to launch is when investors have to decide if they want to keep their option B investment with the project to receive their tokens or if they'd like to withdraw them.
For investors who aren't sure if they'd like to invest in a project they can manage their risk by investing half and half or split in other ways, getting benefits from both options without risking their whole investment, only losing out on APR but given how many stablecoins that exist not offering any this can be something they don't mind.
For the project this can allow for bigger investors to appear who will park sizeable amounts with them to help with funding without risking their initial investment.
When the project is finalized and about to launch, those keeping their investments with the project would give the project a big headstart to fund marketing, exchange listings, etc.
Multi-sig wallet with many trusted Hive ustakeholders holding over the Hive account with the investments would make it even more secure.
Having more options is better.
On hive we have many ways for stakeholders to invest in projects. Direct investments, delegations, earning through post rewards, referrals, collaboration, liquidity providers, etc. Why not also make use of HBD APR as long as witnesses are offering returns on it and stakeholders don't mind losing out on the APR if it gives them the option to decide if they want to remain invested in a project for longer to see how things develop until they can decide if they want in or out. It's a bit similar to those investing through delegations and giving them power to undelegate if they don't like the way things are going for the project.
Either way, that was basically the idea and I'd like some feedback on what you guys think. I think that in and of itself this is something that could potentially bring more value from outside the hive ecosystem to us as I personally haven't heard of anything similar being done in other places. Other than that it could also encourage stakeholders here to "invest" bigger amounts without having to rely on the reputation of the founder/team early on but look at the product being developed to give them an edge if it's going to be a successful project or not. It also gives them many other advantages such as not just having to rely on the early idea but see it being used in alpha/beta and their investment staying with the project having a higher chance at not only being profitable for them but also making sure the project gets a headstart to gaining traffic from the outside to bring to the ecosystem by using the funds for marketing, etc, which the whole ecosystem benefits from and investors Hive stake.
Of course things have to still be fine-tuned, so don't take the examples used above as concrete numbers. I'd just like to know the if the idea is something that would entice you to invest a bit more in a project if you know you can decide to withdraw part of the funds before the project is live. If successful this could become a default option for many upcoming projects and dapps and potentially bring even more of them over to hive to "kickstart" their funding which could convince witnesses to keep the APR as high as it is now.
