ICO Review — Opakeco — the human foundation

Summary

Introduction

Opakeco Foundation will be one of the first social experiments of running a real world charitable foundation on Ethereum Blockchain and smart contracts. And major positive theme of their foundation is supporting charitable organizations & other foundations funding their causes in a more transparent manner using smart contracts, blockchain and Karmo tokens.

Symbol: Karmo

Crowdsale opening date: 8th of August (Tentative)

Crowdsale closing date: 14th of August (Tentative)

Platform for Fundraiser: Ethereum

Country of Formation: Neatherland

Analysis

Value Propostion for Investors

This gives a unique opportunity to investors to be part of a foundation and be a part in its decision-making process and also a contributor causes using Karmo tokens. Also these tokens have speculative value as they will be tradable in exchanges. Currently we see good odds of our token being added to liqui, bittrex and they want to try kraken. But the nature of their token allowing voting rights and also funding via buyback programs makes their tokens a kind of equity/security based on the jurisdiction you are in.

My View

While there are few ICOs are there that claim to be help charitable cause e.g ACT and ROOTS Project. Opakeco wants to provide a different perspective to running a real foundation on Blockchain which according to me is a very innovative idea to bring aspects like voting, funding, transparency and operations of Charity organizations on chain and also helps to develop a rating system where Charities are rated on their transparency. And yet their choice of calling their charity Opakeco which means “opacity” in Esperanto seems counter intuitive.

Platform

Problem

Most if not all charities are transparent regarding their goal, but not on how this goal is reached. People are expected to believe a charity at their word. In the view of the Opakeco Foundation, this cannot be the case for humanitarian causes. Any decision to help humanity should fully consider the ethic and moral chain. “

Solution

They are developing an easy to use and intuitive platform, where the foundation aims to remove most technical hurdles for token holders to interact it. The most important feature of the platform is the ability to vote with Karmo tokens. Additionally, all internal communication will be made available on the platform. The communication logs are made available every 24 hours. Other data, such as income and expenses, will also be made available to token holders through the platform. The platform will also facilitate sending aid to humanitarian causes. Token holders will be able to trade their tokens for aid, ranging from food packages to medical supplies to complete infrastructure projects.

In the initial release the platform is initially available as a centralized application. Access to the platform is restricted to token holders that apply for user credentials. In future release a decentralized application will be made available as a wrapper around the Karmo voting mechanism. Token holders will be able to transfer tokens to an Opakeco Platform (i.e. “OP”) contract wallet. The contract wallet is connected to the Opakeco Platform Dapp, and from this contract wallet the user can make transactions from inside the Dapp without making an explicit transaction.

Intermediate Release

Charities will be able to apply for an Opakeco Charity (i.e. “OC”) contract wallet. This contract wallet is connected to the main Opakeco Foundation wallet, allowing token holders to vote for donations. Charities will also receive user credentials to communicate with token holders on the Opakeco Platform. This will also be logged; the generated logs are available under ‘intermediary communication’ after a single day.

Final Integration

The Independence release will previous versions into a seamless boundary application connecting the central Opakeco platform with its decentral counterpart.

Key Features

  • Initially primary use of the token will be to vote on quarterly budgets and other important strategic decisions
  • In the last quarter of each year the Opakeco Foundation will initiate a buyback program of Karmo tokens.
  • The Opakeco Foundation will create a smart contract that token holders can activate, to initiate the vote for a kill switch. If the kill switch is activated all remaining funds (in Ethereum) will be returned to the token holders.
  • Vision is to aid someone or crowdfund an infrastructure project, while at the same time being able to vote with these tokens about the strategic course the foundation is taking

Tokensale

The official Opakeco Foundation website will provide all instructions and details pertaining to the initial coin offering. The funds raised will be transferred to the Opakeco Foundation to fund development and launch our first goals. Karmo token represents rights to vote. At most, 7 days after the sale ends all tokens will be automatically distributed.

1 ETH = 26000 Karmo

Hard cap = 100000

ETH Minimum Target = 20000

Duration = 7 Days

Note: The Residents Hong Kong, U.S. citizen or permanent resident of the United States Or have a primary residence or domicile in the United States including Puerto Rico, the U.S. Virgin Islands, and any other territories of the United States cannot take part in the ICO.

Roadmap

Fund Allocation

The initial coin offering represents 65% of all Karmo tokens.

  • The founders of the foundation receive a total of 25% of all Karmo tokens. These tokens vest 5% (relative to the total value) per quarter, fully vesting after a period of 5 years.
  • A fund of 5% of all Karmo tokens is kept available for future staff and partnerships.
  • There is 2.5% available for the advisory board.
  • There is 2.5% available for bugs, translations and other bounties.

Team

  • Jackie Xu — Chief Technology Officer
  • Akash Parmesar — Chief Executive Officer
  • Rene Ammerlaan — Chief Information Officer
  • Akis Karamanlis — Chief Marketing Officer
  • Iskander Mos — Chief Creative Officer

Highlights from my interaction with opakeco team

On Opakeco Foundation

We are a registered non-profit in the Netherlands. We dont have a specific theme, our vision is making all humanitarian causes transparent and accountable. The platform is our means to that cause. Eventually we want to work towards a world where every human being meets a basic humanitarian standard at least. Our token holders will steer our course, towards the theme they think is important at that moment The token holders may decide if we should spent our focus to helping Syrian children or Indian homeless families for instance.

The foundation itself has several years of planning in it. I have been working on this goal for approximately 3 to 4 years now. It has had multiple avenues of execution, a few which hit legal boundaries with regards to securities and SEC-typical regulations. The Opakeco Foundation was officially registered somewhere in July, I would have to find the papers to give you an exact date.

We are applying for ANBI status, if we do not get that accreditation.(For example if the belastingdienst (our IRS) does not know ho handle crypto) we will apply for SBBI. Either way, both are not necessary for us to receive grants and fulfill our goals. But they would be helpful. As an addendum to earlier statement regarding out application for Public Benefit Organization status. This application takes 8 weeks. The foundation is legally ready-to-go. The Public Benefit Organization classification is something else, that has to be applied for, and takes 8 weeks for the government to process. It might be a tad bit confusing, but a non-profit organization in the Netherlands does not automatically fall under either of the three categories you mentioned. The NPO can apply for one of the above classifications to receive certain perks that its donators/sponsors can benefit from. As an example: donations made to a Public Benefit Organization are exempt from tax.

On Founders Compensation

We founders actually start with zero tokens. The founders receive tokens from the foundation over time: 20 quarters (i.e. 5 years) to be precise. The compensation is because some of our founders might work full time for no salary.

On the Tokensale smart Contract

Our Smart Contract leveraged the contract constructor from Zeppelin to set the cap, but defining it outside of instantiation does increase visibility.

A crowdsale has been under consideration for approximately three months, I think. It’s hard to do these days, because there is such a diverse way of starting one. I think Vitalik’s post sums it up the best, where he explains all the different types of crowdsales.

On ICO

Our target is 20k eth Hard cap is 100k, that will cause us to speed up the process. We do not use pre ico bonuses and such things. We want a fair distribution. We do not promise lambos etc. But we will align with token holder interests. Like keeping the value up with buy back programs for instance :)

The sale is planned on the 8th of August, unless we feel we can’t get everything properly built, reviewed and audited in time. Contracts are partially done. Reviews will be done by external parties, advisors and community members. We have quite a few contracts that are intrinsically linked: the crowdsale contract, the foundation contract wallet, the founder token release contracts, and the kill switch contract. They all have to be ready, reviewed and audited before the crowdsale, to prevent anything malicious from happening.

On future opportunities

Maybe interesting to note: weve received offers for partnership from hsb identification and euroclear.And we are indeed a foundation, we could be litigated against if were to scam or anything. We are adding 2 lead devs and 1 philanthropist to the team soon, but more info will follow.

On comparison to similar ICOs

We want to work towards a platform where the tokens will be used for sending humanitarian aid to different causes Yes, we are going to be totally transparent. Lead by example. Our communication, internal, will be publicized after 24 hours. And tokens have a real use, like voting and sending aid.

On Karmo token’s legal status and usage

Karmo is not a security from a legal perspective. Or at least according to the law we operate under, which is Dutch law, we are unable to have securities. A foundation has a board which may or may not have advisors. The foundation has no obligation to listen to the consensus reached by the community. However, actually doing so would mean immediate termination via kill switch contract.This is what protect the voting mechanism supporting the Opakeco Platform.

Conclusion

One of the key issues for me is that they have a buyback program for their tokens and almost 40% of the Foundation profit will be allocated for it which is a big waste of investor money which can be used for a good cause. Also almost 25% of the funds generated by the ICO is locked down for the founders which again could have been put to good used. Their foundation is not a non-profit but rather looks with a profit-making intent. Also, their model of locking their initial platform to token holders who will be mostly speculative buyers, runs counter to the great outreach for charitable causes that they want to achieve. And finally, a major issue with their tokenomics despite them being a foundation may expose to strict regulatory compliance & EU AML/KYC requirements.

Despite my concerns their contract structure and vision if implemented properly can be a great template for future adoption of cryptocurrencies and Blockchain to bring transparency and governance of charities on chain and help automate some of their key administrative and fundraising functions. Also by interacting with their team I felt good that they have working experience with charity and are passionate about the cause. In ICOs and in any entrepreneurial initiative what matters is the team and their vision. Though the narrative may have issues but if the team gives its 100%, then they can build something great. And that is what I felt about their team.

I will conclude with the following words from Jackie’s remarks

“Seeing people join our cause makes me happy. I do hope it’s because of a mutual interest to help people, and not just intrigue regarding the foundation, though!”

Reference

Disclaimer: This is not investment or trading advice, always do your own independent research.

If you like the Blog then please help support the publication via https://www.patreon.com/cryptbytestech. Also you can send some eth contributions to 0x670A8721C343Ce16D619630283Ea70F3235e3247