Pledgecamp CEO: Dual Pass + Funder Protection Mechanism, Blockchain Creates New Fashion for Crowdfunding Platform 丨 Chain Node AMA

On March 15, the Fed suddenly cut interest rates sharply, lowering the Federal Reserve Fund rate to the 0-0.25% range, and at the same time starting a $ 700 billion QE, time seems to return to 2008.

After the 2008 financial crisis, due to the lack of market liquidity, many entrepreneurs found it impossible to obtain financing through traditional banks and investment institutions. Modern crowdfunding allows entrepreneurs to raise funds directly from their supporter community, without having to go through professional investors. The current compound annual growth rate of the crowdfunding business model has reached 15%. The global crowdfunding market size exceeded USD 10.2 billion in 2018 and is expected to grow to USD 28.8 billion in 2025.

However, current crowdfunding platforms generally suffer from trust issues, lack of safeguards that protect funders' funds and accountability to project sponsors, lack of transparency, and are too centralized. On the afternoon of March 13, Choi Jae Hoon, CEO of the blockchain crowdfunding platform Pledgecamp, was a guest chain node AMA and talked about how the blockchain can empower the crowdfunding platform.

Pledgecamp CEO: Dual Pass + Funder Protection Mechanism, Blockchain Creates New Fashion for Crowdfunding Platform 丨 Chain Node AMA

Protecting "Our Investors" with Blockchain

Unlike traditional crowdfunding platforms, Pledgecamp uses a funder insurance mechanism to host a certain percentage of crowdfunding funds through Ethereum smart contracts, enabling funders to monitor their use of funds to strengthen implementation accountability. The funds raised by a project will not be given to the project party all at once, but will be locked in a smart contract in the form of a part of token assets. After the project reaches all important nodes and is approved, supporters vote to transfer these The funds were released to the sponsor.

Choi Jae Hoon emphasized:

"In the funder protection mechanism, the funder has the greatest authority because the funder has the right to vote. The project creator must provide evidence (videos, photos, etc.) that can convince the funder to prove that the milestone has been reached, and the funder can proceed based on the information provided. Judge. "

In other words, at the evaluation stage, if more than 51% of the funders judge that the project has reached a milestone, they can vote and get another part of the financing funds; otherwise, they will be restricted from obtaining the remaining financing amount and returned to the funders .

There is a certain degree of opposition between the funder and the crowdfunding party. The more favorable the insurance mechanism and the funder, the more disadvantageous the crowdfunding party is. So, in this case, will the platform's appeal to crowdfunders be discounted?

Choi Jae Hoon said:

"Introducing a good project basically requires the establishment of an excellent funder pool foundation. The platform that even the funder's funds cannot guarantee cannot survive in the water plant for a long time. Therefore, the user pool we want to build is the best factor to attract the project party. . "

Pay attention to decentralized crowdfunding platform

As a blockchain crowdfunding platform, decentralization is the philosophy that Peregrine has always adhered to. This has been reflected in the funders' protection mechanism. The screening of crowdfunding projects is no exception.

Pelege does not actively screen projects for good or bad in the platform, because such policies violate decentralization. At the same time, the platform did not set up project funding requirements for project creators. Therefore, the successful completion of a project's crowdfunding mainly depends on the project itself, but the platform will provide online tools to help the project progress, such as project flow monitoring tools. However, a validator mechanism is set up in the platform to filter illegal projects and ensure project compliance.

Since Paleji does not review the project, will there be a blockchain project that issues a token on the platform?

Choi Jae Hoon said:

"The platform complies with regulations, and currently there are very few legal ICO projects, so there will be very few blockchain projects that issue coins in the early stages of operation, but after the blockchain industry integrates into the legal process, we will also help the exchange's IEO project Our platform goes online after financing, and the exchange is our partner, not our competitors. "

Speaking of compliance issues, how can Pallagi avoid regulatory risks and protect the interests of users?

Choi Jae Hoon responded by saying:

"At present, the crowdfunding services within the product are similar in nature to e-commerce and are all legal. Although ownership / stock investment categories such as real estate and corporate acquisitions apply different regulatory policies in each country, they do not affect the progress of our platform. We There will be stricter KYC procedures and legal investor verification. "

A different dual token economy

Pledgecamp uses a dual token incentive mechanism: PLG (Pledge Coins) tokens are mainly used for transactions within its crowdfunding platform; CS tokens are non-transactional tokens, mainly used for governance, used to obtain the qualifications of managers and In this way, the platform fee is paid to motivate managers to keep consistent with the platform's benefits.

Unlike many dual-token systems, PLG and CS are replaced with each other, and the total amount of tokens is fixed. The sponsor can obtain CS by pledged PLG 1: 1, and after the user passes KYC, holding 100,000 CS can become a validator. In addition, the user's PLG fundraising amount can be viewed in the open chain, and the transparency is very high.

In addition, he also emphasized that PLG is not an STO, but a Utility Token, and relevant legal opinions have been certified from Malta, Singapore, and the United States law firm. At present, the United States has not proposed a clear guidance document on cryptocurrencies, so PLG may not be a Utility Token in the United States. Therefore, for the compliance of tokens, PLG is clearly ready in advance.

On March 18th, the official version of Pledgecamp will be launched. Facing the future, Choi Jae Hoon stated:

"The United States and Asia are important strategic markets for Palladium. The gathering centers of Chinese manufacturing and technology start-ups, such as Shenzhen, are expected to become the focus of the platform."