Use of Crowdsale Proceeds
Providing Value for DPP Token Holders
This blog offers a detailed overview of how the funds raised during the crowdsale will be utilized. We’re firm believers in the importance of remaining active, concise, and transparent with our community and we will continue to abide by this philosophy throughout the development cycle of the platform and beyond.
As you know, the Digital Assets Power Play crowdsale was a success as we surpassed our initial milestone of USD $2.1 million. The public crowdsale started on September 21 and ran until September 26, lasting for 5 days, with a total amount of 8.479 ETH raised at the crowdsale preset price of 255 ETH to the equivalent of 2.162.145 USD.
Raised funds will be allocated between the development of the DA Power Play platform and the Operational Wallet, as shown in the illustration below.
Since the end of the crowdsale on September 26, the price of Ether has appreciated against the US Dollar and continues to do so at the time of writing (Oct. 16, 2017). Based on this appreciation, anything in excess of USD $2.1 million will be allocated towards the Operational Wallet.
Development Allocation — Scaling the Current Solution to a Geo-Located IT Solution
Proceeds for development of the platform will primarily be used to further scale (salaries of developers), for KIP’s Eye system, and to deploy the system on a hybrid cloud solution (IT solution cost). This will also include licensing costs.
Our hybrid cloud solution will have to be geo-redundant, best serving continents where DA Power Play users will be located and allowing us to have close proximity to the exchanges. By doing so, we aim to work with them, connecting not only through public API but establishing a direct connection and thereby minimizing possible downtime.
Allocation of Other Operational Costs
Operational costs such as office costs include legal and regulatory advisory expense to third parties, such as KPMG. We embrace regulation, and in order to make preparations for future regulatory challenges (MIFD 2, GDRP, etc.), KPMG will advise and help us ensure that we comply with these challenges. They will also aid us in working with existing standard financial institutions.
By adapting and complying with regulation, we will enable financial institutions to utilize DA Power Play as they would any other financial tool (i.e. Bloomberg) that they already use to create their own financial instruments, route trades, or strategies. Part of the proceeds will also be allocated to the marketing budget as well, allowing us to promote our platform, engage with and expand our community, and to promote DA Power Play and its varied services.
DA Power Play platform development costs are expected to be allocated as shown in the chart below:
Operational Wallet — Boosting Value for DPP Token Holders
Due to the amount raised, a small percentage of crowdsale proceeds will also be allocated to the Operational Wallet. This will include development of advanced strategies, artificial intelligence, and further development of proven algorithmic strategies — a testbed for new ideas.
Appreciation of assets from these DA Power Play developed strategies will be used to cover any additional operational costs, including AI and licensing costs to third parties. This will provide DPP Token holders with additional services and platform features free of charge. For example, consider Mediatoolkit being available for free to users with 10,000 or more DPP Tokens. As we continue to add such services and benefits for token holders, this will give them access to flagship platform features, providing them with a power play over the rest of the market.
Public Wallet and the Liquidity Reserve
As DA Power Play will retain 35% of DPP Tokens for the Public Wallet and Liquidity Reserve, these tokens will be vested until the platform is fully operational (up to 6 months following the end of the ICO). At that point, DPP Tokens will be provided to the platform strategy developers that DA Power Play decide to back or — where necessary and available — they will be used for liquidity provisions for stakeholders.
From our experience and having spoken with numerous traders and professional investors, the DA Power Play platform needs to provide liquidity between Strategy Wallets, the platform, and exchanges.
This will allow strategy owners and traders to bypass the limitations of low liquidity and blockchain transaction time on certain exchanges or positions. Atomic trade execution is also expected, pending market fluctuations and strategy risks.
Asset appreciation from the Public Wallet will be either returned to the Wallet or used to pay licensing fees to third parties which will provide additional features that will be free of charge to token holders. We feel this is a fantastic system that will we bring long term benefits to DPP Token holders.
Our team members are always available to answer your questions! Join our public channels on Telegram and Slack, follow us on Twitter, Facebook, andInstagram, or learn more about DA Power Play on our Medium page, YouTube channel and website. You can also contact us directly by email at email@example.com