[CROWD] Crowdano CROWDfunding Pool
Crowdano Crowdfunding Pool. 20% of profits donated to charity, 10% goes towards Crowdano development.
What is Crowdano Crowdfunding?
The platform aims to be a next-generation crowdfunding platform based on the Cardano network. By using the Cardano network the platform can enjoy low fees, fast transactions and a great community whilst increasing network usage and encouraging adoption.
Mainstream crowdfunding platforms such as Kickstarter and GoFundMe have been hugely successful in recent years, however both require a huge amount of trust from investors that their money is going to be used as they expect, and that they will receive the expected reward or benefit associated with the fundraising campaign. This platform aims to reduce the level of trust required by investors through the use of smart contracts as will be explained further later.
- Investor Insurance:
As previously mentioned, the main goal of this platform is to provide a trustworthy, secure way for backers to invest in chosen projects.
- Low fees:
Investors need to be sure that no matter what time of day or how busy the network is, they are not paying extortionate fees when backing a project. This is why the Cardano network is the ideal solution for this platform.
- Business Launchpad:
The platform will aim to be the ideal launchpad for businesses and ideas both big and small. Thanks to the scalability of the Cardano blockchain, the platform can enable campaigns from as little as a few hundred ADA to hundreds of thousands of ADA.
In order to prevent scams where a product is promised and never delivered, the platform will introduce a staged funding model. In this model campaigns will receive only a small percentage of the campaign funding initially in order to get the project off the ground. The staged funding model is explained in a step-by-step process below;
- Project owner launches their campaign with a desired target amount and a specified initial payout amount.
- Backers research the campaign and assess whether they think the project has potential and whether they would like to back the project.
- If once the campaign deadline passes the project has been successfully funded (i.e. amount raised is greater than the goal) then the initial funding is released to the project owner. If the target amount is not reached then all backers receive a refund of their investment.
- Once the project owner has reached a milestone in their project and would like to receive the next stage of funding, they can request an amount from the funding pool. This starts a vote in which backers vote on whether they think the milestone has been completed successfully and if the requested amount is acceptable.
- If this vote passes, the next stage of funding is released to the project owner. If the vote does not pass then backers have the opportunity to wait for more evidence of the milestone being completed or they can start a refund vote. If the refund vote passes with a specific quorum then all backers remaining contributions are refunded.