“Never depend on a single income source, make investment to create a second source”, this is something that is said quite often in the current times. The emerging market for such investments essentially has become ‘startups’. These are basically ideas from highly competent professionals on which people invest by judging the ‘yield’ of this idea if it is manifested correctly.
For such startups these professionals need money/investors to make their ideas real. Startups though are very much risk bound and maximum number of times they are just big scams from highly efficient con artists. Everyday new ICO’s are launched that are highly lucrative yet highly unpredictable. This creates a huge dilemma in the heads of the investors. They are intimidated even by authentic projects and this leads to more biased decisions.
This is the point where the need of a “Crowd funding platform is felt and where ‘Descrow’ comes in handy. Descrow is a decentralized crowd funding platform built on Ethereum-smart contacts and uses the blockchain technology. Descrow hence is currently the need of the hour. (https://descrow.com/)
Brief introduction about the platform
Descrow is a decentralized escrow platform with is built to ensure the protection of assets and prevention of unforeseen loses thus eliminating the excessive distrust of potential investors to the new ICO/Startup. When the backers feel safe in investing the startups will in turn become more prosperous and great ideas will not be lost amidst all the scams.
In Cryptosphere these days one can encounter ample number of great ICO’s everyday to invest on. Trusting ICO’s is a big issue for the investors. According to the DESCROW’s white paper total amount of investment into ICO’s has surpassed 3 billion dollars as per September 2017. This amount of money which is ever increasing needs some kind of regulation so that backers have a certain influence on their investment in future.
Key issue of such ICO’s is that they are accumulating all of the cryptocurrency. Investors pay the funds immediately in one go thus cannot control the release of assets at every step of the ICO which is now possible with Descrow.
Descrow based on Ethereum smart contacts can regulate release of funds to the startups based on voting by the participant backers. Below is a diagram explaining this process.
Source: - (https://descrow.com/images/WP_en.pdf)
Active tokens are allotted to the investors once they have completed their payment for the startup. Frozen token are kept safe and are released when the ICO reaches a particular point on their roadmap as per the smart contact.
This process comprises four operational stages. In the stage I the Ethereum smart contact is initiated and the active tokens are allocated to the investor as they complete the payment.
This smart contact comes with all these aspects in the first stage with active token (transferred to the startup immediately), frozen token (corresponding to reserve funds) and voting rights (which will be used in the further stages).
The initial tranche is followed by voting. The startups submit their ‘progress report’ to the backer and the backers have 5 days to decide whether to continue project financing or not and subsequently vote on the Descrow platform.
Based on this voting the fate of startup will be decided. If the investor presses ‘No’ button during the voting procedure still the votes are more than 50.01% they are requested to fill a feedback form to point out the mistakes directly to the startup team. This increases the accountability of the startup team to the investors and keeping a room for potential improvements in the project thus is a win-win situation not only for the investor but also for the startup team.
Stage I ends with completion of ICO and the financial splitting of the project into stages starts. Stage II starts just after the completion of voting and allocates the reserve funds to be transferred as per the road map. This results in increase in the active tokens and decrease in the frozen tokens. This stage ends with another voting procedure similar to stage I.
Stages III and IV are similar to the second stage but during the stage IV backers do not make any decisions on the release of funds as they are already allocated. At the end of the financing the backers gets 100% of unmarked acquired tokens. (https://descrow.com/)
DESCROW tokens and DESCROW team
The assets on this platform are based on the ERC 20 token standards. These “DES” tokens can be purchase only when the participant has the ethereum wallet. This wallet can be made on http://www.myetherwallet.com . The cost of the token based on its ‘Ether’ value is given in the diagram below.
Source: - (https://descrow.com/images/WP_en.pdf
The token price will keep fluctuating as per the demand and the supply during the ICO.
Descrow team comprises of highly competent professionals who are stalwarts in their respective fields. Segey besedin who is the CEO and founder of Descrow is also the founder of blockchain association in Russia. Anton Mitrokhin is a strategic manager with >10 years and also author of “methodology of business projects and personnel assessment.
The Descrow platform is a very noble platform which indirectly is promoting safe investment practices and easy funding for the budding entrepreneurs. Securing the fund release it benefiting not only the investor but also is keeping the startup team on their toes all the time. This will push the startup team to work more efficiently and deliver their promises. The feedback system will help improve the ICO indirectly and thus gives investors power to influence the development of the startup.
Website: (https://descrow.com/)
Whitepaper: (https://descrow.com/images/WP_en.pdf)
YouTube: (https://www.youtube.com/channel/UCGEwFiKi_yxEVCkgTSv7zPA)
Twitter: (https://twitter.com/Descrow3)
Written By: (https://twitter.com/ICO10xMessiah)