Proof Comes to Crowdfunding
Eurekah’s “Proof of Claim” is a game-changer for blockchain, crowdfunding & collaborative web communities
In the film industry, the fashion industry, the tech industry, the marketing industry, and beyond, stakeholder input reigns. Those of us who’ve ever sat in front of a board or across from a committee understand that nothing gets done without group consensus, or at least a push from a few key allies — especially when trying to get an idea off the ground. This is generally the basis of democracy; one group backing an idea through shared interest. And if it’s an idea of personal concern, gathering support and rallying the troops is the hardest part.
Imagine a scrappy indie filmmaker with a shot at making their first major studio film. There are a million things to do before turning on the camera, but one of the first things to check off the list is to present a “proof of concept.” This could be a short piece with some test shots, but it simply needs to convey the validity of the idea. Proof of concept is a utility that’s been used in industries across the board for decades, and now — for the first time — it’s coming to an entirely new space. Eurekah brings this time-tested — prove-and-develop — model to crowdfunding with “Proof of Claim.”
“Proof of Claim” is one of the many ways Eurekah is making crowdfunding more communal and beneficial for the inventor (Creator) and the investor (Patron). In the traditional crowdfunding model, the fundraiser is given access to his/her funds once a minimum goal is met. That might feel like the reward at the end of a long journey, but it doesn’t really incentivize ongoing loyalty. Once the fundraiser has funds, is there truly an obligation to deliver the project? The answer is no, and the problem lies within the platform — leaving the inventor to make good on their promises. No recourse for irresponsible inventors. No program to ensure whole delivery. But this is exactly what Eurekah is trying to prevent with Proof of Claim; it’s Eurekah’s way of supporting and approving an idea for continual development.
ACHIEVING PROOF OF CLAIM
Proof of Claim is Eurekah’s way of supporting and approving an idea for continual development. It’s a check on the Creator — but more importantly — it’s an incentive to keep going. Let’s start at the beginning.
First, a Creator must be approved to list their project on Eurekah. This intake process is called “Creator Acceptance.” A candidate submits a scope of work and detailed product roadmap, then Eurekah’s industry-specific project managers works with them to figure out goals and technical needs for the project. Once a candidate achieves Creator Acceptance, milestone roadmap metrics must be met in order for them to receive payment distributions from their supporters. This introductory period is called “Patron Adoption,” and it’s when the product starts to get backed by Eurekah’s Patrons. Once minimal funding goals are met, Proof of Claim is achieved and Eurekah will release a percentage of the total funding goal to the Creator and assist in product marketing and support efforts.
Most importantly, achieving Proof of Claim means the product can be traded on Eurekah’s secondary marketplace. This is Eurekah’s proprietary space where users can buy and sell goods prior to the product ever being created. Once here, Creators are entitled to a percentage of secondary marketplace sales, meaning, they can bank higher crowdfunding goals than traditional models. The reason being, users are buying into the potential of the product being delivered, and as the product moves further towards development, the value intrinsically goes up. As value increases, so does fundraising and secondary marketplace sales.
If the Eurekah community believes a viable product can be made, Eurekah will help Creators reach potential Patrons and find success on the secondary marketplace. That’s the benchmark for Proof of Claim. Like a contestant on The Voice, the more votes received, the longer a singer can stay in the game to continue their journey.
PROOF OF CLAIM & BLOCKCHAIN
Eurekah uses blockchain technology to layer in added security and transparency for users. It’s another aspect that sets us apart from traditional crowdfunding platforms, and it actually guides the way Proof of Claim works.
Years ago, analysts predicted that early crowdfunding initiatives made a statement about how people want to have a direct say in product development. Now, in the age of blockchain, an entrepreneur can take that interest to the next level by essentially creating universal venture capital funds. Since a blockchain system is “decentralized” by nature, crowdfunding transactions are verified across a peer-to-peer economy. So in the instance of Proof of Claim, leveraging blockchain technology to ensure funds are securely contributed is a primary objective.
Blockchain technology was invented to be more or less “foolproof” and revolutionary in the way transactions are made. But recent news stories have brought into question the “trustless” nature of the system. Eurekah’s Proof of Claim makes a positive impact on the blockchain space because it literally puts trust at the center of the equation. For Creators, Proof of Claim is an aspiration that’s measured in milestones. Those benchmarks are verified across the network using public-key cryptography — creating a crystal-clear system of checks.
Proof of Claim gives real-world, tangible value to blockchain technology. By creating a system where users can feel confident in their interoperable currencies, value is added to blockchain technology industry-wide, and more importantly, a token is created that is backed by more than just vaporware, but tangible products.
THE POWER OF PROOF OF CLAIM
IN EUREKAH: It’s about follow-through — empowering Patrons to feel like early adopters and lighting a fire under Creators to deliver. It’s about incentivizing a secondary marketplace where trade fuels big dreams. It’s about creating space for kickass products and ideas to gain traction. It’s about making something no one has ever seen before.
IN THE CROWDFUNDING SPACE: Holistically, Proof of Claim has the power to transform the crowdfunding space at-large. In a nutshell, it seeks to bring accountability and transparency to the industry by it making it feel more legitimate. It has the power to change the way people think about crowdfunding because it’s crowdfunding with stakes — and crowdfunding with built-in opportunity.
IN THE WORLD: Globally, Proof of Claim can be a touchstone of fairness for other platforms. It brings people with practical motivations into an environment where ideas can thrive. It can be the model on which different companies in diverse industries build their culture. It beckons to the spirit of innovation that lays dormant inside many of us.
So what are the drawbacks?
At first glance, Proof of Claim could feel too cumbersome or complex for users looking for the frivolous joys of crowdfunding. The looming “make it or break it” feel could turn away users looking to raise some quick dough among their Facebook friends before cashing out. The complexities of blockchain and cryptocurrency could make the everyday fundraiser a bit hesitant or outright bewildered.
But this is where the industry is headed and Eurekah happens to be the first ones there. Eurekah is a platform that has promised to help “fund the future.”
SO WHAT NEXT — WANT TO STAY INVOLVED?
Eurekah has been doing some cool things lately and with the addition of key advisers, partnerships, and stakeholders, Eurekah is on track to build a game-changing platform that aligns the incentives of both the Creators and the Patrons. Over the course of the next few months, Eurekah will be stepping up its social media campaigns, marketing, and of course technical development for a beta version of the product to be released by year-end.
To track our journey and monitor the progress of Eurekah, feel free to stay connected through our social media platforms.