Implementing Decentralized Autonomous Structure in MoatFund.

Shhh! Let me tell you a secret. You can raise millions of money in an ICO easily. Based on recent ICO craze, it’s actually quite simple:

• A great catchy name can start selling the idea right from the start. It must sound real like bitreal (pun intended!).
• Find an expensive designer to code a fancy website. Do add a timer “ICO in 21 days 18 hours 45 minutes 11 seconds”. Use javascript to run the timer (idiot!).
• Show some real faces on your website to sound authenticate. And I know, you’re not dumb enough to add credentials to team’s profile — “Crypto Enthusiast” or “Blockchain Expert”.
• Write a Whitepaper with extreme technical details. Add some block and 3 arrows traveling from one block to another or create some diagrams to make it sound authentic.
• Create a Twitter account, Medium blog, Telegram group, start a Reddit thread.
• Launch. Create hype. Cash out. Underground.

The crypto market is too hot. You can easily get wallet-out ready-to-pay people to fund your idea in consideration of token which may or may not have any value in future.

This is insane. Let’s get serious. It’s a real problem. Dealing with other’s hard earned money is a serious crime.

Numerous crypto coins are introduced in the market. Rapid growth of the community without much experience has left the noob investors for either buying the hyped coins or staying away from the wave of the crypto market. There remains a significant need in the crypto market for a due diligence-backed investment methodology to avoid boom and bust cycles.

Reckless raising of funds through ICO lead us to think about a new way of funding the Coin Offering. Afterall, you can’t trustlessly give your funds to anyone who claims to be an expert in the field.

This is why MoatCoin Ecosystem will be governed by a Decentralized Autonomous Structure. This is a new fundraising model recently introduced by Ethereum Founder Vitalik Buterin - DAICO (Decentralized Autonomous Initial Coin Offering).

We are implementing DAICO in MoatCoin protocol. This is where we are separated from other fancy ICOs where all the ETH are withdrawn immediately by the team members on the future promise of building their product.

We can’t simply withdraw anytime or any amount of ETH from the smart contract. MoatCoin protocol restricts the withdraw of funds using a concept Decentralised Governance which means there is no single governing party.

How does it basically work?

A step by step explanation.

First. Propose the investment plan.

Not only our team, anyone can propose the investment plans. Yes, even you can propose your investment deck. The proposal must include:

• Name/s of ERC20 token.
• Price range of coin.
• % funds of portfolio.
• Risk analysis.
• Peer comparison.
• Rationale behind the investment.
• Holding period.
• Other references.

If your investment plan sounds appealing, you may also be rewarded from the Team’s 5% share of MoatCoins for your contribution in forming out the investment plan (however, I’m afraid to provide any clear statement now).

We are determined to make more changes to MoatCoin protocol in future to build a decentralised portfolio managing platform where the community as a whole will help to form the investment plan.

Second. Your proposal will be discussed with MoatCoin board members.

A seperate telegram group and discourse forum will be aired off for all the board members. All members can discuss their future investment plans. They can provide their opinions and seek solutions for their queries.

After an ample amount of discussion, all the board members will be asked to Vote for the Proposal directly on our Smart Contract using their registered Ethereum address (we will surely make the process easy by creating a client end to interact with our smart contract. Otherwise, you can anytime interact with Smart Contract using myetherwallet website).

Third. Team will collect the specific ETH amount from the smart contract.

So that’s the only function which helps MoatCoin team members to withdraw the funds from smart contract. Don’t worry. I’ll make it easy for you to understand. No need of coding background. Let’s discuss the code line by line.

Line 21 — function collect() onlyOwner public {

There’s a modifier onlyOwner so only the owner (MoatCoin team) can call this function.

Line 22 — require(block.number > voteEnd);

The above condition checks if the ethereum block number at which the team member sent the collection request must be greater than the end block number of voting period.

This ensure that we can’t withdraw the funds until and unless the voting is ended.

Mostly, the time is calculated with respect to the block on ethereum chain of blocks (blockchain). So a new block is added in every few seconds on ethereum blockchain. At an average, 212 new blocks are added in an hour. That’s how blockchain works.

Line 23 — require((votes*2) >= totalBoardMember);

It checks if twice the positive votes are equal to or above the total board members. So if 11 members voted positive out of 20 then the calculation will go something like this:

require((11*2) >= 20) which is true as 22 is greater than 20. That means more than 50% of the board members are in favour of investment plan.

The code will not pass through if only 9 members voted positive as 18 is not greater than 20.

Line 24 — msg.sender.transfer(reqETH);

msg.sender is the person who called the collect function which is absolutely the owner/MoatCoin team. transfer will transfer the specified ETH in the bracket to the msg.sender . reqETH is the variable which stores the value of requested ETH at the time of initiating the proposal.

So if we proposed that we want to invest 30 ETH equally in ZRX, BAT and EVX then our ethereum address will be increased by 30 ETH and smart contract ETh balance will be decreased by 30 ETH. Simple.

Last line 25 — reqETH = 0;

This line changes the value of reqETH variable to 0 so that we again need to create a voting ballot and propose our investment plan with the new request of Ethereum.

We can’t raise more than what is proposed. Ensuring the safety of funds. So if the voting results is in 50% favour, we will continue the next procedure.

Forth. Transfering to our exchange account and execute the order.

Now, we will transfer the 30 ETH to our exchange account (mostly, we will use binance for altcoins) and execute a buy order for crypto coins we promised to invest in.

Fifth. Transfering altcoins again to our Smart Contract.

Now, if we go for the next proposal of our investment, the board members may grill us for the report of our previous 30 ETH investment. So in order to get our second proposal pass through with majority vote, we surely have to transfer the altcoins we bought to the smart contract.

As we are only dealing in ERC20 tokens so after buying the coins we will immediately transfer it to our smart contract and the altcoins will be reflected publicly on our smart contract. Etherscan is a good website to check the credit balance of all the tokens our smart contract holds.

Previous funds are back to our smart contract (in form of ERC20 Tokens) and now we can again propose a new investment proposal with new requested ETH. That’s how the MoatCoin will be driven by the mutual understanding of tokenholders, board members and MoatCoin team. Smart contract made all this possible.

Remember, more than 70% of the crypto coins are hosted on Ethereum blockchain so we have a very wide rande of market to choose from. Here’s an ethereum address of binance which shows all the token they hold.

Similarly, you can watch all the tokens we hold on our MoatCoin smart contract. That’s how we will maintain a complete transparent and secured track record on the ethereum blockchain.

There are many different fund managing protocols like TAAS, ICONOMI but most of them lacks the transparency and are mostly centralised — the team have full access to all the funds at any point of time. You can get a clear picture of actual movement of your funds inside their protocol. And their fees are extremely high. For instance, TAAS charged 15% cut at the time of ICO and 25% quarterly profits. Crypto market is really hot. People are ready to pay anything. You must invest your money prudently.

FAQs (Ask yours in the comment below).

What are the criterias for becoming the board members of MoatCoin ecosystem?

Anyone can apply for becoming a board member of MoatCoin (procedure is explained in next question). After applying, we will check for the following criterias for board members.

• The person must hold minimum 10k of MoatCoins at all the given point of time.
• The person must actively participate in all the voting. Our voting ratio must be 100%. No matter, whether you voted in favour or in against.
• The person must complete the KYC procedure which will be associated with his/her ethereum address. No double membership.

We will select the board members after the ICO gets over.

However, you can apply for board membership now by interacting to the smart contract as explained below. Be an early bird. Seats are limited.

If have any queries, comment below. Don’t forget to clap. Interact with our team on our social media accounts.

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Website — https://moatfund.com

Thank you, as always, for reading.