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ICO Analysis: DADI

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DADI (Decentralized Architecture for a Democratic Internet) is a platform for decentralized cloud and web-based services. The platform uses a Decentralized Autonomous Organization (DAO) and fog computing to bring you these services in a cheaper, more secure fashion.

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The project is attempting to remove the power of the behemoths (Microsoft Azure, Amazon Web Services, Google Cloud) that currently dominate the industry. These companies can have high upfront costs, and with their centralized structure, there’s the potential that they’ll throttle up operational costs once you become dependent on their services.

DADI is ambitious, and there’s a lot of things the team is trying to accomplish. Their technical white paper goes into extensive detail about numerous things, but I’ll just cover a few of the interesting points here.

Decentralized Web Services

DADI uses a decentralized pool of Internet-connected computers to run the network and provide governance, known as fog computing. This has a few crucial benefits for the end-user:

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Cost

Like most blockchain systems, the decentralized architecture greatly reduces hosting costs. DADI claims that the savings could be up to 90% compared to Amazon Web Services (AWS), but I couldn’t find any numbers to back that up. Even at half that claim, enterprise customers could potentially save hundreds of thousands of dollars each year on their cloud computing costs.

Reliability

DADI ensures that your online product will be “always-on”. Even if one server experiences issues or has a connectivity interruption, others can take its place. The AWS hiccup of early 2017 that seemingly caused outages for the entire Internet is a great example of why this type of reliability is important.

Miners

There are three classifications of miners on the DADI network:

  • Gateways
  • Stargates
  • Hosts

Gateways contribute bandwidth to the network and are the entry point for consumer requests. They also authenticate and verify responses from Hosts. Stargates are the same as Gateways but also manage domain mapping into the DADI network. Lastly, Hosts supply the computational power needed to run the web services platform.

Put more simply, Hosts help maintain the network through a Proof-of-Work system while Gateways and Stargates operate through something akin to Proof-of-Stake. The latter two need to time-lock DADI tokens in order to announce themselves to the network.

DADI Token

DADI is an ERC20 token that runs on the Ethereum network. 100,000,000 DADI tokens will be created during the ICO and the company won’t create anymore after that. The fixed supply of tokens will circulate through the system in the form of consumer fees and miner rewards.

As a consumer, you need to spend DADI tokens to use the web services. This fee is split five ways:

  1. The Host receives the majority of the payment as a reward
  2. The Gateway that the Host is connected to earns a small percentage that’s taken from the Host’s reward
  3. Another portion is used to support the underlying connectivity of the network
  4. An additional small amount is given to the DADI team
  5. The remaining amount of tokens are burned

Unfortunately, the whitepaper description of this distribution is fairly vague and omits the specific percentages of each split.

The Team

The DADI team consists of 18 full-time members. Joseph Denne leads the team as founder and CEO. Previously, he founded Airlock, an award-winning digital agency that boasts clients like BMW, Disney, and Coke.

Denne brought a good chunk of his management team over from Airlock including Chris Mair (Business Strategy) and Will Lebens (Solutions and Support Team). Lebens has experience as a Non-Executive Director at the open source platform, Symphony CMS. This should help DADI with its initial emphasis on CMS web services.

Although there’s not much blockchain experience on the founding team, they’ve brought in Technical Directors with adequate skill in distributed networks. Directors James Lambie and Francesco Iannuzzelli have over 40 years of engineering experience combined.

The founding team has been working on the DADI project for the past 4 years and has contributed $2 million of direct investment. This is great, but for a project of this scope, it would’ve been more comforting to see a team comprised of ex-employees from one of the cloud computing giants mentioned earlier.

Tokens and Distribution

The DADI crowdsale starts on January 22, 2018, and will last for 30 days or until contributions reach the $29 million cap – whichever is first.

The company will mint 100,000,000 DADI tokens at the ICO, but only 60,000,000 are available for crowdsale participants. The remaining tokens will be split accordingly:

  • 20,000,000: DADI founding team
  • 10,000,000: DADI partners
  • 5,000,000: Referral program
  • 2,500,000: Ecosystem fund (network support)
  • 2,500,000: DADI+ ops (day-to-day operations and key hires)

The 20,000,000 founding team tokens are split among the 18-person team and vest over a four-year period. Assuming an even split and no change in price, this is about $140k salary for each team member.

The crowdsale is split into a presale (10,000,000 tokens for $0.40 each) and public sale (50,000,000 tokens for $0.50 each). The presale begins on January 22, 2018, but registration is already closed, so they’re not accepting additional participants. The public sale begins on January 29, 2018, and you can purchase DADI tokens with Ethereum.

The DADI team plans to use the proceeds from the token sale as follows:

  • 45% – Marketing and partnerships
  • 25% – Research and development
  • 25% – Infrastructure
  • 5% – Indirect costs

Everything seems to be in order with the token distribution. The 20% allocation to the founding team may seem high, but when split between 18 people and distributed over 4 years, it becomes much more reasonable.

The Verdict

DADI is attempting to decentralize the web services market, an over $250 billion industry that’s growing rapidly. To do so, the company is focusing on fog computing and smart contracts to give users a cheaper, more reliable alternative to services like AWS.

The company is primarily targeting Content Management Service (CMS) users but is building out a robust platform capable of supporting all types of web-based products.

The team has a rich history together and ample experience – although this experience isn’t with blockchain technology. A project of this magnitude may see trouble at scale without team members who’ve been through it all before.

Risks

  • Poor Whitepaper. The technical whitepaper is missing critical details regarding the actual costs and fee structure split of the platform. More alarming, portions of it have been proven to be blatantly copied from another project, SONM. The team has since addressed this issue attributing it to an editing mistake, but this should raise flags nonetheless. (-4)
  • Big-time Incumbents. DADI is going up against some of the biggest businesses in the world. These companies have over 100x the resources DADI has – even after their ICO. (-3)
  • Inexperienced Team. No member of the leadership team had previously worked at one of the cloud computing giants. A project like this is bound to hit problems as the network grows and someone with that type of experience would better know how to handle them. (-3)

Growth Potential

    1. Gigantic Market. The web services market is projected to reach close to $400 billion by 2020. If DADI and decentralized hosting become the new paradigm, even a small portion of that would mean big returns. (+6)
    2. Working Product. DADI has something going for it that most other ICOs don’t – customers on a functional product. The company is receiving over $150k of monthly recurring revenues from large-scale clients like Virgin. (+5)
    3. Self-funded.  The founders have operated DADI for four years without taking any outside investment. This commitment brings legitimacy to the project. Combined with the vesting schedule of the founders’ tokens, it’s unlikely that the team will disappear with your contribution. (+3)

Disposition

Our final score comes out to +4 out of 10. This isn’t to say that DADI is a bad project, though. The company has clearly seen some success with clients and sizeable monthly revenue numbers. But this begs the question, “Why the need for an ICO?” Adding a token to an already working system seems like it may just complicate things. If it ain’t broke, don’t fix it.

All that said, this project is a classic moonshot. If the team is successful, the entire cloud computing industry is in for a shakeup and DADI should be standing tall when the dust settles. Like all ambitious projects, though, the risk of failure is high, and I’m just not sure the DADI team are the right people for the job.

Investment Details

The DADI public crowdsale begins on January 29th, 2018 and ends on February 20th, 2018. To contribute to the ICO, you can register here.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 16 rated postsAlex Moskov is a writer and entrepreneur with a passion for building and creating awesome things. Alex has experience in music tech startups, digital marketing, and cryptocurrency investing.




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ICO Analysis: DeStream

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The internet has allowed for many new avenues of entertainment to be introduced. Online streaming has become a culture of it’s on in the last few years. Millions of people watch their favorite content creators on live streaming platforms like Twitch and YouTube. Famous content creators are also jumping abroad the trend, this way directing portions of their already following to watch them live. There now are hundreds of online entertainers that have their activities with online streaming as their primary income. The content catalog for streaming is rapidly expanding to include more niches and with it, the number of viewers.

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Subsequently, there’s also an economy surrounding online streaming platforms. A part of the economy surrounding streaming is donations. That’s all thanks to a trend that was popularized by Twitch.tv, a website that initially started as a streaming website focused on the gaming community. Fans of live streamers of the platform would donate while the streamer was live for their message to be read out publicly. The more popular Twitch streamers get dozens of such donations during their live streams, ranging from $1 to as much as a viewer would see fit.

Online Streaming as an Industry

Twitch.tv was acquired by Amazon for a reported $970 in cash in 2014. In more recent years, bigger platforms including Facebook, Instagram, and newer social media platforms have been expanding their features for live streaming. Media organizations and industries like sports, TV streams and personal video apps are also jumping on the sector. A 2016 report found that online streaming was accounting for over two-thirds of all internet traffic. With live streaming now becoming a preferred way of communication between brands and customer, the sector should expect its already rapid growth to continue.

The State of Existing Solutions Available to Streamers

It’s worth emphasizing that due to the nuance of the sector, many things within it are changing rapidly.  Just last year, YouTube went through what was dubbed as the “adpocalypse”. Content creators in their platform, including the most established ones, had started videos on their channels demonetized. As this situation still unfolds, it’s now been understood that YouTube had started employing an AI algorithm that would stop creators from receiving ad revenue on their videos based on the content of their channels and videos. This year even, YouTube also made the requirements for earning through the platform much stricter than previously:

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On January 16, 2018, we announced new eligibility requirements for the YouTube Partner Program. Once a channel reaches 4,000 watch hours in the previous 12 months and 1,000 subscribers it will be reviewed to join the program.

Fan Contributions and the State of Solutions Providing a Platform for Donations as a Service

With ad revenue proving insufficient for full-time content creators to earn a living, many of them are turning to alternatives. Patreon and lately Flatt have been gaining more and more traction with content creators. Those solutions allow for fans to “subscribe” to their content creators for a monthly donation. Twitch was already employing such feature and more recently YouTube also introduces a subscription-based model for monetary support with YouTube Red, along with in-house donations called “Souper Chats”; a feature that pushes comments on live streams with a donation attached ahead of other comments, in a fashion similar how Twitch streamers accept donations.

The Problems

Many of those centralized solutions are faced with problems, and due to the young age of the sector, there hasn’t been much time for competition to develop. Patreon and Flattr take more than 10% away from each creator’s donations in fees and processing. YouTube’s and Twitch’s in-house solutions also charge hefty fees and more-over lack worldwide availability. Some creators have thought of turning to cryptocurrency, but the issue with this aside of adoption lies in the fact that a subscription-based model with crypto hasn’t proved hard to develop.

DeStream: A Decentralized Platform for the Streaming Industry

The many problems creators in the streaming industry are exactly what DeStream seeks to address with its platform. The project’s team aspires to build a feature-rich platform to receive donations on low commisions by utilizing  decentralization and blockchain technology, also creating a robust and censorship-proof platform in the process.

Token

According to the whitepaper of the project, the DST tokens will be able to provide users of the platform with several utilities. Potential use cases made note in the whitepaper are mentioned below:

  • Making a donations.
  • Paying the platform’s Commission for executing transactions.
  • Buying digital goods.
  • Getting a reward from the advertiser.
  • To purchase any goods in the affiliate shops.
  • Gaining access to big data analytics.
  • Paying for the services of the platform (marketing, making the streams more.attractive, etc.).
  • To perform internal P2P operations.

Smart contracts are set to become available to streamers and advertisers to help bring to life an autonomous platform for the DeStream economy. Commissions for streamers to cash out revenues would only be down t0 0.77%.
A total of 3,600,000,000 DST tokens will be allocated to the Token Sale with a base price of 0.006 USD per token. The private main closes on the 30th of May 2018 with discounts being as follows:

  • Pre-sale: up to 50% bonus, discussed individually.
  • 20% discount on the first two days.
  • 15% discount from the 3rd to the 5th day.
  • 10% discount from the 6th to the 15th day.
  • 5% discount from the 16th to the 21st day.
  • 0% discount from the 21st day to the end. of the crowdsale

The allocation of funds is set to be as follows:

  • Marketing: 41%
  • Operational expenses: 30%
  • Development support: 17%
  • Events/Trips: 12%

And the distribution of tokens:

  • Token sale: 60%
  • Fund: 20%
  • Team/Advisers: 19%
  • Bounty: 1%

Team

The team behind DeStream appears to have a great experience when it comes to working on new ventures.

Founding members include:

Anar Mekhtiev, the project’s founder and CEO has among other ventures founded his own IT company which the DeStream notes as “specializing in complex development”.
Tachat Igityan, co-founder and CTO for the project is, as written in the website, the “Founder of one of the largest business schools in digital marketing and Internet agency management (RIC).”
Alexey Khvostenko, Founder & CTO, appears to have many years of experience with software development.
Overall, the team appears to have experience in the sector of project development and a decent technical backing. Also notable, the team’s presence in live appearances on conferences that’s showcased in the section for events in the project’s website.

Verdict

DeStream brings on a concept for a much-needed solution. A decentralized platform for streamers to utilize could get backing from the ever-expanding platform creators of live content have. Live-streamers are always on the lookout for a better solution and known to adopt new alternatives as they come, being tech-savvy as they are.

Risks

  • Developing such a platform could be met with many shortfalls especially under the hood of new decentralized technologies. DeStream has not yet brought out a proof of concept application or MVP, and the roadmap of the platform only makes mention of an Alpha for the 3rd to 4th quarter of 2018. -2
  • The discounts and bonuses for the token run too deep, something that brings up questions for the pre-ICO stage. -1
  • The vision the team tries to bring forward gives a sense that the project might be trying to cover too many aspects instead of focusing on a few strong feats coupled with decentralization. The lack of a clear goal could prove problematic in later stages of the project’s development. -1

Growth Potential

  • Founders are very active on live events. +3
  • The team of the project has chosen the upcoming blockchain platform Stratis for the project. A move that showcases a willingness to adopt new technologies to better suit the project’s vision. +3
  • DeStream could utilize an already huge and growing industry for its growth by providing attractive services to creators. +2
  • Members of the team appear to have great experience with project development and technology. +2

Disposition

The project has great potential and the team appears to have a clear understanding of how they could tap into the streaming industry. However, the lack of an MVP coupled with the fact that the project’s vision might be too ambitious brings in a higher risk factor. Our rating is a 6 out of 10.

Investment Details

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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ICO Analysis: Smart Valor

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The Consensus Conference just came to an end. And although it didn’t quite produce the instant moon shots expected around the market, it did produce a smorgasbord of tasty new projects. Perhaps the most succulent one is a decentralized, community-based marketplace for tokenized alternative investments called Smart Valor.

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The VALOR Platform is blockchain agnostic and designed to evolve and expand over time. Most of the components will be open source with outside contributors able to build apps on top of it. Here are the current components that will be available on the platform.

  • App marketplace: Third party providers or any contributor for that matter can build apps on top of Valor. The users can then purchase or license these apps via the marketplace
  • ICO platform with tokenization engine: Basicallyn this is an incubator. VALOR helps guide new projects through the token sale process, making sure the model/smart contract is consistent with the asset.
  • Task marketplace: Anyone with talent will be rewarded for coding, research, performance predictions and more. According to the company, “Positive reviews from the community and accurate performance predictions will build your publicly verifiable reputation and increase your earning potential.”
  • Governance and voting engine: The community will govern most of VALOR by voting on decisions, contributing to polls, introducing petitions, etc.
  • Rewards and bounty programs: Stakeholders earn rewards by engagement in opinion polls, being involved in governance matters, giving input on new assets being considered for listing, providing liquidity and much more things that haven’t been added yet.
  • Decentralized auctioning marketplace: Smart contract enabled auction marketplace that helps price discovery and supports liquidity in low volume traded assets, for both investors and asset issuers.
  • Licensed exchange: Trade asset and crypto tokens while following all regulations.
  • Authentication and identity: Authenticate and manage user IDs with multi-factor authentication implemented.
  • Secure custody for crypto assets: Valor accounts or wallets allow you to hold your tokenized assets safe and securely.
  • Portfolio management: User-friendly dashboard, desktop and mobile. Integrates risk analysis and performance prediction apps from the app marketplace.

What can be found in the VALOR marketplace? Tokenized alternative investments.

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The Valor Platform fundamentals include:

  • Blockchain based securitization: Representation of assets through cryptographic tokens enabling efficient, instant and secure transfer of value.
  • Focus on alternative investments: Will Focus on inaccessible and mostly illiquid assets – as well as safe-haven investments.
  • Community-driven value creation: A decentralized organization with meritocracy-based rewards for individual contributors.
  • Fully compliant and licensed platform: The VALOR Platform is in the process of undergoing regulatory approval to act as a fully licensed marketplace for alternative investments.

Token

This project is still in its private pre-sale phase. They have yet to release a whitepaper, and there is very little info on the token.  Here’s the information available as of May 17, most of it comes from this livestream of Olga speaking to a small crowd on May 8th: https://smartvalor.com/ama-livestream/

The Valor token will serve several functions.

  1. Contribute to value creation: Earn rewards through investing or by contributing your expertize to the Valor Community, with coding, research, market predictions etc.
  2. Build your reputation: Publicly verifiable reputations will increase earning potential. Everyone is equal at the start, and will earn value as they give value. Or the opposite.
  3. Voting rights: Allows holders to vote on strategic decisions.
  4. Special Privilege: Holding VALOR grant exclusive rights.
  5. Staking: Asset issuers and service providers must stake a certain amount of token as collateral. In case of misconduct or non-compliance, the tokens are forfeited.

The allocation is as follows:

  • 45% Distributed to token purchasers
  • 19% Founders, future employees, advisers
  • 5% Liquidity buffer
  • 5% Bounties and network growth
  • 26%Retained for future development (locked up 3 years)

Team

Team Smart Valor is already 13 people deep, have offices in Paris and Munich, and are headquartered in Zug, where they are hosted by the Thomson Reuters Incubator. Zug is turning into one of the leading Cities for start-ups. Part of that popularity is due to Founder Olga Felldmeiers working with Swiss Officials to give blockchain innovators the freedom to do their thing.

(At Galaxy with the legend himself, Mike Novogratz 5/16)

Oliver Feldmeier: COO – an expert in digital transformation, Founder and Managing Director of Verto Advisory (Switzerland) and Technology Advisor at Capgemini (Germany).

Julien Bringer: Chief Security and Cryptography Expert. Holds over 50 patents and has authored over 80 publications on security and cryptography. Headed the cryptography and security research team for six years for IDEMIA.

Thomas Felber: CIO, Co-founder and Head of IT at BeeZero. Previously Co-founder and Managing Partner of software development and IT consultancy Tekaris (Germany).

There are six impressive adviswrs including the  co-founder at swytch.io, the founder of PAY.ON, and an ex-board member of the Ethereum Foundation.

Verdict

Traditionally, only whales were able to get into the trillions of dollar alternative investments industry. But now that we can tokenize and make liquid any and all assets, the little guy finally gets to buy and sell tiny fractions of everything 24/7,  with instant transaction executions, instead of waiting a couple days like on the stock markets.

Risks

  • They want the community to pretty much run the platform in the future. With so many different projects out already, it could prove to be hard finding enough enthusiastic community members. -1
  • There have already been quite a few asset tokenization project failures already. -1
  • Although it sounds like this team is prepared for all the regulatory hurdles coming their way, it still won’t be easy. –2
  • The private pre-sale is way too private, and loose. They have yet to put out the whitepaper, yet have been collecting funds for at least three weeks. -1

Growth Potential

  • Hosted by the Thomson Reuters Incubator, the project seems powerful. A lot of thomson Reuters Incubator projects present at major conferences, and connect with each other. +2
  • They are listed as one of Europe’s 10 Most Exciting Technology SMEs for 2018 by Forbes. +2
  •  SmartValor will have an incubator of their own for new projects to be created.+3.5
  • Potential partnerships out the wazoo. +2
  • Founder, Olga Feldmeier has “it”. And people see it, she speaks at all the major conferences, and constantly helps convince the higher-ups to allow Switzerland to be one of the leaders in blockchain innovation. +3

Disposition

VALOR hits on all cylinders.

Although there will be many similar protocols to compete with,  Valor separates itself by being blockchain agnostic and focusing their energy specifically on alternative investments and compliance with regulators.   7.5/10.

Investment Details

  • Platform: erc20, but will be blockchain agnostic
  • Hard Cap: $35 million
  • Total Supply:  100 million
  • Tokens for sale: 45 million
  • Price: $1 before bonus
  • Private Pre-sale: 50% bonus Sign up https://smartvalor.com/pre-sale/
  • Crowd sale: TBA (will have lower bonus tears)
  • Whitelist: https://smartvalor.com/pre-sale/
  • First AMA Video: 1 hour long . https://smartvalor.com/ama-livestream/

Featured jmage courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.1 stars on average, based on 17 rated postsJoshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!




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ICO Analysis: Kleros

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Thousands of decentralized applications in tomorrows economy will rely on smart contracts to settle disputes by arbitration. The problem right now is smart contracts are incapable of making subjective judgments or factoring information from outside of the blockchain. Existing dispute resolution technologies are slow, expensive and unreliable. For DApps to gain mass adoption, they need a fast, transparent, reliable and decentralized dispute resolution mechanism that renders ultimate judgment over the enforceability of smart contracts. Enter Kleros.

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Kleros is a decision protocol layer Dapp built on top of Ethereum. It works as a third party to arbitrate disputes, relying on game theoretic incentives to have jurors rule cases correctly in a fast, cheap, reliable and decentralized way. As the economy becomes more globalized and digitized, Kleros will become a key piece of legal infrastructure with a large number of applications providing arbitration for virtually everything

Arbitration will happen on apps built on top of Kleros protocol, or in a service provider that will access the Kleros protocol through an API. As the ecosystem becomes more mature, some applications will specialize in finance, others in e-sports, others in sharing economy, others in energy disputes and lots of other use cases.

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Below are some project vitals:

  • Escrow: It can be used to have the smart contract reimburse the buyer or pay the seller.
  • Insurance: If an insurer doesn’t validate an event, a dispute resolution process would ensue.
  • Crowdfunding: Backers can send their money to Kleros instead and have Kleros judges determine when predetermined milestones are met before they release some of the funds.
  • Oracles: Kleros can be used as an oracle to bride the gap between the outside world and blockchain.

The following image shows an example of what a future Kleros ecosystem might look like. The imaginary companies FairInsurance will specialize in insurance applications, Enerjustice in energy disputes, and TravelSafe in travel disputes.

The Kleros Ecosystem will serve many different interests, including:

  • Parties: The people who may have disputes to solve, will reduce their counterparty risk.
  • Jurors: skilled evidence evaluating observers will earn arbitration fees for their work.
  • Platforms: According to the team, platforms “will use Kleros because it solves arbitration problems better than the alternatives”
  • Entrepreneurs: DApps in e-commerce, freelancing, sharing economy, crowdfunding, etc. will want to use Kleros because it provides fast, affordable and transparent arbitration.
  • Developers: They will contribute to the development of Kleros’ open source technology.

Token

PNK is a utility token. It’s required to protect the system against Sybil attack and to provide jurors an incentive to adjudicate disputes honestly.

In order for a juror in the Kleros ecosystem to be elected to settle a specific dispute, he must deposit PNK. The more PNK deposited, the higher the likelihood of being selected. Jurors who don’t deposit any tokens cannot be selected to settle disputes.

All jurors ruling a case collect fees paid by the arbitrating parties(in ETH). Token redistribution creates the incentive for jurors to vote honestly by using a Schelling Point.
To learn more about the token economics, check out page 4 of the whitepaper.

In the first token distribution event, 16% of tokens will be sold to the public. Buyers who purchase tokens early will receive a 20% bonus. The bonus decreases to 10% at the beginning of the withdrawal lock period and then goes to 0% by the end of the crowd sale.

The token distribution is as follows:

  • 18% Team Members
  • 16% round 1 of token sale.
  • 4% Airdrop (already occurred)
  • 50%Subsequent Rounds and Juror Incentive Programs
  • 12% Kleros Cooperative Development Reserve

Another 50% will be sold in the future as the team reaches milestones in project development and for juror incentive programs.

Founders and team members commit to work on the project for three years (from the time they started) or would have to reimburse a proportional part of their allocation (or everything if they leave before one year).

Allocation of funds is listed below:

  • 45% Product
  • 25% R&D:
  • 10%Ecosystem:
  • 10.00%Communications:
  • 5%Operations:
  • 5% Legal.

Kleros will be running a unique style of token sale, proposed by Vitalik Buterin, called IICO (Interactive Coin Offering). Learn all about it here.

“IICOs are designed to be more egalitarian than conventional public sales. One of the guiding principles of the IICO model is that it eliminates favoritism and deep discounting. We have declined private sale offers, electing to proceed directly to a public sale in which everyone has an equal opportunity to acquire tokens at the same rate. Instead of making one large sale in one round as most projects, the sale will be done through multiple rounds as we reach critical product milestones.”

The sale breakdown is listed below:

  • Stage 1. May 15 to June 15. 20% bonus and the contributor can manually withdraw the contribution without penalty.
  • Stage 2. June 15 to July 1. The bonus starts to decrease linearly and the contributor can manually withdraw the contribution WITH penalty.
  • Stage 3. July 1 to July 15. The contributor cannot withdraw the contribution manually. Only automatic withdrawals.

Team

The team from France looks young and inexperienced on paper, but in reality, seems highly capable and well connected. They have been to pretty much every major Ethereum conference over the last year, including Consensus in New York this week. Look at all their activity here.

Federico Ast:  Co-Founder. He is very active on medium. I can tell he’s the real deal. Ph.D. Entrepreneur. Blockchain & Law. Singularity University GSP16. TEDx Speaker. Coursera Teacher on Blockchain, etc.

Clement Lesaege: Co-Founder COO . A young man who interned at three different companies from 2012-2016 then was a smart contract security freelancer for one year.

Nicolas Wagner: Co-Founder. A freelance developer since 2013 and another young guy. He was recently a developer for Dether.IO.

Three advisers, including Mitchell Loureiro, who is the Head of Marketing at SingularNet, Steemit, Byteball and Ardor.

Partners include Dether, Ink Protocol and a Thomson Reuters Incubator.

The Telegram has 7,000 members. Twitter has 6,000 followers, but only single-digit likes and retweets.

Verdict

Kleros is a very much needed protocol that connects users who need to solve disputes with jurors who have the skills to fairly settle them. There are many more technical details in this project that haven’t been touched on. Its clear from their explanations that they know what they are talking about, have clear goals, and a manageable roadmap. The team’s inexperience does not seem like a problem, because this project isn’t trying to do too much.

“As the ecosystem matures, Kleros will prove that it can deliver fast, affordable and transparent justice in a growing number of use cases. More customers bring more entrepreneurs, more jurors, more developers and an increasing number of use cases. The community will build the ecosystem on top of an open protocol. And this is how decentralized justice takes over the world” (Federico Ast CEO)

Risks

  • It’s so early in the development of DApps that it makes it hard to visualize enough use cases to make this ecosystem run. -1
  • Lots of inflation – only 16% of the tokens will go to funders. The other tokens will be sold either in the future as the team achieves critical milestones or as an additional incentive for early jurors in the platform.-1 
  • There is no hard cap, as IICO is a market-based method. This means that the revenue from the token sale will be determined by market forces. -1

Growth Potential

  • The CEO spoke at Consensus, which is a big deal. +2
  • They have an MVP you can learn more about here.  And here’s a video of it. +2
  • Early partnerships with top companies, including InkProtocol and Dether and Thomson Reuters Incubator.+2
  • Kleros could easily be integrated with existing platforms (decentralized or not) with users being taken to a dispute resolution screen where they may never know who was arbitrating their dispute. +2
  • One of the Telegram devs stated: “Actually, even Vitalik knows of Kleros quite well. He and our Cryptoeconomics researcher William had a very interesting discussion on  http://ethresear.ch/about Kleros and some of the functions of the protocol.” The link is private, so we cant confirm if this is true, but it seems true. +1

Disposition

Although this isn’t the sexiest of projects, it is one of the most important. It provides a court system for DApp users when smart contracts are incapable of settling disputes, which will be often. No better solution has been presented.  6/10 is our rating.

Investment Details

Featured image courtesy of Shutterstock

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4.1 stars on average, based on 17 rated postsJoshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!




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