PledgeCamp vs Kickstarter vs Indiegogo

PledgeCamp is a crowdfunding platform that incorporates blockchain technology for security and accountability. To become leaders in this space, they will need to compete with the likes of Kickstarter and Indiegogo.

Kickstarter is an American global crowdfunding platform focused on creativity and merchandising. As of May 2019, Kickstarter has received more than $4 billion in pledges from 16.3 million backers to fund 445,000 projects. Indiegogo is also an American crowdfunding platform which has 15 million visitors each month.

Kickstarter and Indiegogo are undoubtedly the two biggest dogs in the yard. However, PledgeCamp has what it takes to give them a serious run for their money. Let’s compare the three platforms:

• Structure.
• Funding Rules
• Listing Fees.

#1 Structure

The first important point of difference between PledgeCamp and the other two is the structure. Kickstarter and Indiegogo are both centralized platforms, meaning they are platforms governed by the rules made by the company. The company has the final say as to who gets to list projects on its platform.

PledgeCamp is a decentralized platform, meaning, there is no centralized body which is ruling over it, meaning they are immune to platform censorship. Anyone can list their project on the platform. An interested backer can initiate a smart contract with the project creator to send over their funds.

#2 Rules

There are some fundamental differences between the three platforms, especially when it comes to the rules that govern them, especially when it comes to there funding schemes. Kickstarter has a “Fixed” funding scheme while Indiegogo has a “Fixed and Flexible” funding scheme. In a “Fixed” funding scheme, the project creator can only get their hands on the funds after the funding goal has been reached. On the other hand, in a “Fixed and Flexible” funding scheme, the creator can withdraw the funds any time they want to. Indiegogo’s rules are relatively more creator-friendly, while Kickstarter’s are more backer-friendly.

However, none of them has any provisions that make sure that the creators actually deliver on their promise.

PledgeCamp leverages smart contracts to create a “creator accountability” system called “Backer Insurance.” After a smart contract between the backer and the creator is built, a portion of the backer’s fund is locked up in an escrow. The creator can get access to those funds only when they fulfill certain milestones.

#3 Fees

Both Indiegogo and Kickstarter use Stripe for their payment processing. The fee system of both these platforms are as follows:

• Kickstarter charges a 5% listing fee and Stripe credit card processing charges of 3% + $0.20 per transaction.
• Indiegogo charges a 5% listing fee on contributions and Stripe credit card processing charges of 3% + $0.30 per transaction.

The problem with the listing fee system is that it just incentivizes the platforms to take in as many projects as possible, regardless of its credibility, to make a profit out of it. PledgeCamp ditches the profit-via-listing fees system and adopts a “smart crowd” system. Their main priority is to create a community which will organically help the platform grow and become more valuable. To understand how they do that, let’s first look at PledgeCamp’s tokens.

Pledgecamp uses two tokens, PLG and Camp Share (CS). PLG is an ERC-20 utility token which is used to fund the projects in the ecosystem (among other things). If needed, a user in the system can stake their PLG tokens to obtain CS tokens in a 1:1 ratio. In the process, this particular user becomes a “Moderator” within the system. A Moderator’s main job is to keep the platform as clean and scam-free as possible.

In return, they are rewarded with a portion of the platform’s overall listing fees, in proportion to their staked tokens. Pledgecamp is aware that in its nascent stage, the number of campaigns listed will be less, which is why 50 billion PLG ( 5% of the initial token allocation) has been kept aside to reward the Moderators in the early days.

Conclusion: PledgeCamp vs Kickstarter vs Indiegogo

In conclusion, let’s compare the three platforms to get a brief overview of the whole system: