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ICO Analysis: QuarkChain

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QuarkChain, a decentralized and highly scalable blockchain solution, is aiming to become a high-capacity peer-to-peer transactional system that can achieve millions of transactions per second (TPS), thus solving the scalability problems of current main blockchains. QuarkChain will utilize sharding to provide a high-capacity peer-to-peer transactional system. It will consist of a sharding layer, which allows for high throughput by effectively distributing data, and a root layer, which serves to confirm the blocks of the first. Using this model, QuarkChain is seeking to successfully balance the three pillars of a blockchain – security, decentralization, and scalability.

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The key features of of QuarkChain include:

  1. Reshardable two-layered blockchain.
  2. Guaranteed security by market-driven collaborative mining.
  3. Anti-centralized horizontal scalability.
  4. Efficient cross-shard transactions.
  5. Simple account management with a smart wallet.

Important innovations of QuarkChain include:

  1. The first blockchain technology supporting state sharding.
  2. The first blockchain sharding technology supporting turing-complete smart contracts.
  3. The first blockchain network supporting clustering as peers

QuarkChain is ahead of schedule with their testnet up and running with 2,000 TPS was observed during a recent audit. Achieving 10,000 TPS is the next milestone on their roadmap. QuarkChain has made their Github publicly available. Resumes are being accepted at testnet@quarkchain.io for 100 volunteers to help test the latest testnet. The mainnet is scheduled for release Q4 2018.

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By integrating the Ethereum Virtual Machine for smart contracts, QuarkChain allows dApps built on the EVM the ability to be directly deployed on the QuarkChain Platform. QuarkChain will be attractive to DApps that require scalability, such as CryptoKitties, as well as those that demand high transaction rates: advertisement, IOT, AI and big data, among others. DApps will be able to shift over to QuarkChain if Ethereum is unable to solve their scalability issues in the near future.

Token

QuarkChain tokens (QKC) are ERC-20 tokens that will be used for conducting transactions on the platform. The ERC-20 tokens will be converted to QuarkChain’s mainnet token after the mainnet is launched. Future QKCs will then be produced by miners. $20 million USD is the hard cap with $16 million sold during their private sale, leaving $4 million USD available for their public sale scheduled for the end of May or beginning of June. A total of 2 billion QKC are available for purchase during the tokens sale with a total supply of 10 billion QKC. The public sale price will see 31,533 QKC valued at 1 ETH. Private sale tokens have a lockup period and public sale tokens have no lockup.

The token distribution is as follows:

  • 20% Token Sale (Private Sale Lockup, Public Sale No Lockup)
  • 45% Mining, Community, and Marketing
  • 15% Foundation – Lockup to 2 Years
  • 15% Team – Lockup to 2 Years
  • 5%  Advisers – Lockup to 2 Years

Team

The team and advisers appear solid and capable with members coming from companies such as Google, Facebook and Instagram. They also bring experience in software engineering, blockchain development, cyber security, leadership and finance. A few team members are:

  • Qi Zhou, Founder: Expert in high-performance systems. Received a Ph.D. and M.S. from Georgia Institute of Technology. Previously worked with Facebook, Dell and Google.
  • Zhaoguang Wang, Core Engineer: Expert in large scale distributed systems. Master in Computer Science from University of Michigan. Previously worked with Instagram, Facebook and Google.
  • Xiaoli Ma, Research Scientist: Expert in signal processing for wireless systems, an IoT and big data professor, as well as IEEE fellow at Georgia Institute of Technology. He is a  Co-Founder, CTO of Ratrix Technologies, LLC.

QuarkChain currently lists six distinguished advisers on their website, including Bill Moore, who served as chief engineer for storage at Sun Microsystems and is former president of DSSD.  Mike Miller is also a project adviser. He has a PhD physicist with 100+ publications and Founder of Cloudant, which was acquired by IBM Cloud Data Services. He is also an Affiliate Professor at the University of Washington).

For the complete list of team members and advisers, visit the official website.

Verdict

This highly anticipated ICO will definitely be followed closely by many, as QuarkChain seeks to compete with the likes of Ethereum. If dApps are quick to jump onboard, QuarkChain could quickly find itself right up there among other major blockchains. Potential investors should keep a keen eye on this project.

Risks

  • Competition should be fierce with other projects undoubtedly coming along and attempting to compete in this market. Current projects, such as Zilliqa, will be competing directly with QuarkChain. Also, Ethereum is working to solve their scaling problems in the near future. -1.5
  • Although it doesn’t appear to have dampened the enthusiasm of potential investors, only 20% of tokens are available for purchase during the token sale, which is quite low compared to other ICOs. The 35%-65% range is preferable. -0.5

Growth Potential

  • QuarkChain has demonstrating 2,000 TPS on their closed testnet while using only a few AWS nodes, putting it ahead of most blockchain 3.0 projects with higher valuations. As more and more nodes are used in the testnet, higher scalability should be achieved. In comparison, the Ethereum blockchain is currently supporting around 15 TPS. +4
  • With high profile YouTubers promoting QuarkChain, multiple ICO investment spreadsheets ranking QuarkChain at the top, and a massive Telegram membership of 80,000 and growing, the hype surrounding the QuarkChain ICO has been tremendous causing extremely high interest from investors. The private sale sold out quickly with many potential investors unable to participate. With only $4 million USD available for purchase during the public sale, the demand is currently greater than the supply. The hype factor cannot be ignored in the current ICO climate. +3
  • QuarkChain has integrated the Ethereum Virtual Machine (EVM) for smart contracts, which allows dApps built on the EVM the ability to be directly deployed on the QuarkChain Platform. This is a huge advantage for dApps looking to migrate easily to a platform that accepts ERC20 compatible apps as well as delivers speed well beyond what Ethereum can. +3

Disposition

If QuarkChain stays on course with its roadmap, they are extremely likely to become a major player in the blockchain industry. With their highly respectable team, an MVP (testnet), major hype, and investors chomping at the bit, QuarkChain receives a rating of 8.0 out of 10.

Investment Details

  • Symbol: QKC
  • Platform: Ethereum
  • Price: 1 ETH = 31,533 QKC
  • Hard Cap: $20 million USD ($16M Private Sale, $4M Public Sale)
  • Public Sale: End of May/Beginning of June
  • Total Supply: 10 billion QKC (20% available during token sale)
  • Payments Accepted: ETH

For more information regarding QuarkChain:

Website: quarkchain.io
Telegram: t.me/quarkchain (79,000+)
Twitter: twitter.com/Quark_Chain
Facebook: facebook.com/quarkchain.quark.5
Medium: medium.com/@quark_30920
GitHub: github.com/QuarkChain

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 35 rated postsKent Hamilton - ICO Analyst on Hacked and Founder of CryptoDayTrader.io - ICO Insider Info




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2 Comments

  1. ceas00ceas

    May 12, 2018 at 9:44 pm

    Quarkchain is a 5+ star project
    Everything about it is perfect

  2. ednord

    May 12, 2018 at 11:54 pm

    1) Technology in White Paper is described in a clear, understandable way. The githab is open, so we can to judge the code.
    2)The project promises to use cross-sharding
    3)Simple account management: There is only one account needed for the entire blockchain (shards) in QuarkChain. All cryptocurrencies from different shards are stored in one smart wallet.
    4)The team – scientists, professors, ex-Google / ex-Facebook people, this is quite enough
    5)Capitalization of the project is very modest by the standards for blockchain – only $ 20m, strict selection in the public sail
    6)QuarkChain is currently already running the first version of their Testnet
    6)QuarkChain is EVM compatible- dApps that benefit from a high-throughput solution will have the option to switch over to QuarkChain at any point

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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

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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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