Disrupting Venture Capital Paradigm

The recent introduction of the DAPP Network (liquidapps.io) to the EOS ecosystem is probably as important as the historical introduction of virtual machines to data centers.

This new layer of technology solves many problems that are not well known yet to the general public and investors, but very real for dApp developers. These issues include the manipulation of large datasets, interfacing with the real world via reliable oracles, inter-blockchain communication, and the ability to decentralize applications end-to-end.

DAPP is a utility token that allows developers to use the resources of this new network (vRAM, vCPU, inter-blockchain communications, …) by staking them to one or many DSPs (DAPP Service Providers).

The DAPP token is not a currency, it is a utility token similar to EOS. DAPPs holders are shareholders of the DAPP Network resources. The DAPP token is therefore very significant for a developer.

The costs of setting up the physical infrastructure and the resources needed to develop the network are assumed by the DSPs, who in turn are paid in DAPP by an inflation mechanism proportional to the services rendered.

For the moment, a large portion of the DAPP token value is created by early investors who speculate on the potential of the DAPP Network, but don’t really need the resources associated with it. The dApp developer, meanwhile, needs these resources, but does not necessarily have the means to get them.

The DAPP has intrinsic powers:

DAPP power 1: Support DSP

Currently, the investor who owns DAPP tokens can stake to one or more DSPs in order to give value to the network. As the DSPs’ income is proportional to the number tokens staked to them, this is a form of indirect assistance that encourages the purchase of equipment and the mobilization of human resources.

DAPP power 2: Get access to DAPP Network resources

By staking DAPPs to a DSP, you are granted access to your share of network resources like vRam, vCPU and other services.

Let’s look at different scenarios:

We are used to the venture capital model to help start new projects. As shown in the different scenarios, investors now have additional ways to add value to the DAPP network. IMO, it is critical for DSPs to provide simple interfaces that allow token staking AND resource delegation to attract investors. As the interests of investors are directly aligned with those of the DSPs and developers, we could witness an improved synergy without necessarily having recourse to the venture capital approach. After all, that’s what blockchain is all about: disrupting old paradigms.

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