The Funding Process and How Users Participate
The Funding Process
To adequately describe the processes involving funding within DropDeck contains information that is subjected to the specific context that surrounds users’ individual roles; for more information on user roles and ways that users participate in the DropDeck ecosystem, please visit the article titled, “DDD Token and User Roles”.
The entirety of the funding process can be described in ten stages and we will demonstrate how each of the different participants (users with different roles) allow for a natural progression to drive the process to completion.
Stage 1 — Open a Deck
Hunter’s kick-off the process by diligently researching and communicating with startup companies by collecting information and gaining their permission to open the Company’s own Deck. The Company’s Deck will be their official portal or channel for the rest of the community with exception to Delegators who provide legal grounding offline.
Stage 2 — Evaluators Perform Analysis
In this stage, Evaluators will make an assessment of the company that plays a role in how funders will view the company in the following stage. The consensus of all the individual analyses and the trust scores of the evaluators who conduct the assessment will come into account when viewing the likelihood of success of that company. This stage will also be utilizing the AI applications and the large amounts of data to ensure the information presented is as accurately as possible.
Stage 3 — Funders Make Assessment
Step 1: Funders will scan through companies and look at the Evaluators general consensus to decide the best companies in which to invest. Funders will be given access at this point to pay DDD to receive further detailed information on the Company’s Deck and it will provide utility in making a more informed decision.
Step 2: Once a Funder decides a company is relevant enough to their interests to pay for detailed information, the evaluators are then rewarded for their contribution to the entire process.
Stage 4 — Funders Make Smart Contracts
Assuming the funder, in the previous stage, decides to invest in the company, he or she shall send DDD Tokens to develop a smart contract. These DDD Tokens will be reserved for the Company for when the Delegator finishes legalizing the terms between the Funders and the Delegator.
Stage 5 — Assignment of Delegation
Companies, or funders, at this juncture will seek out a party to fill the role of Delegator. A Delegator conducts due diligence on the Company and as much of their background as they can so that the smart contracts that were initiated in Stage 4 can be engaged. A Delegator can be assigned at any step prior to this, but one must be assigned before going to the next stage.
Stage 6 — Delegator Approval and Smart contract
Now that the Company has assigned a Delegator and all parties involved in the contract approve, the Delegator can carry out the terms of the loan or fundraising. This stage solidifies all users’ involvement with respect to the legal terms described in detail in the smart contract.
Stage 7 — DDD Token Distribution
The smart contracts have been agreed upon by the approved Delegator and the DDD Token allotments have been assigned; DropDeck begins the distribution process of the appropriate tokens to the Company or Recipient, and a certain proportion of that amount will be sent to the Hunter who assigned and initiated the Company Deck to DropDeck.
Stage 8 — Delegator and Company Legal Agreement
The Delegator and the Company collaborate and agree upon a set of legal terms that the Company must oblige with respect to the repayment of DDD Tokens. This is necessary to set the Company on the same terms as the Funders with respect to their own smart contracts.
Stage 9 — Company Develops Repayment Contract
The Company needs to send the DDD Tokens into a smart contract where they will be stored based on the agreed upon terms in the contract. After this point, the tokens are subject to the terms of the contract and the system takes care of repayment in a later stage. The Delegator is the party responsible for making sure that the Smart Contract abides by the terms agreed upon in the prior stages.
Stage 10 — Smart Contract Token Repayment
Step 1: The first phase of the final stage is the smart contract will direct a proportion of the DDD Tokens to the Delegator of the Deck assuming that the Delegator was involved in the auditing process.
Step 2: The funders will receive their portion of the DDD Tokens that satisfies the legal obligations in their smart contract.
DDD Token and our Community Fueling the Funding Process
We have demonstrated how the use of the DDD Token can be used to maximize the involvement of different parties, reward participants, and hold collaborators in a virtual workspace to a legal agreement that operates automatically off its own terms. There are checks, balances, and rewards at every turn. Better yet, the funding process just begs to be repeated as we watch our other technologies drive home accurate, precise, and trustworthy predictions in the space of fundraising and lending cryptocurrencies.
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