PARSIQ Q&A #43
Hello again everyone, today we have a pretty important Q&A as Tom and Rong Kai discuss an important new change in direction for PARSIQ, following the AMA we published the first CEO letter giving a formal overview of some of the changes you can expect, you can check that out here.
First, if you are a holder of $PRQ, and you are not already staking your tokens on IQ Protocol, then be sure to have a look at our 2x Yield Boost Incentive + Free $IQT Incentive Programs. Second, if you had been staking your $PRQ prior to 2022, you’re now eligible to claim your second allocation of your rewards from our $1m $PRQ incentive program. Third, if you’re interested in IQ Protocol, don’t forget to participate in our White List Program.
Tom: Hey Everyone, we’re here with Rong Kai the COO of PARSIQ today on this latest AMA, hope you’re all well and safe with all the geopolitical things going on in the world and the terrible situation in Ukraine. I personally have a few close friends there so I really hope this finds a resolution soon. For today, Rong Kai and I will shed a little bit of light on the new expanded direction that PARSIQ is taking, the plans for 2022 and onwards. It’s not just a small change in the roadmap, it’s a lot bigger, this is a bold new change for us but we believe it’s the right path to take. After this AMA I will also publish a small piece on Medium, something I’ll be doing a couple times per quarter, talking about PARSIQ, talking about summarizing the quarters, talking about other industry topics unrelated to PARSIQ. Today, I’ll be putting out the first one, then I’ll touch more in depth on what PARSIQ’s new direction means. So yeah, Rong Kai, you want to lead?
Rong Kai: Yeah, sure, so I think I can add a little bit to what Tom was saying as well. We didn’t expect today on our AMA day to be like this, there’s a lot happening outside as well, but stay safe and we have friends from everywhere, from Russia, from Ukraine, from Baltic states, from Europe, from other parts, so everyone is concerned, I know everyone just wants to go on living with their lives.
We’re worried about people, I know the people in Russia are worried as well, most people, a vast majority of them just want to go on living their lives. With Covid, with inflation, a lot of other things I think people are worried. But today is our AMA day, life still has to go on to some degree, we just wish to use this opportunity to say to everyone, to feel free to let us know and have a chat if you’re having difficulties. A lot of people wonder how would crypto help out in this situation. I think that’s a conversation that’s good to have, perhaps in our Telegram chats.
As for our new direction I think today is going to be a bit of a new reveal. I think for those of you who have seen Daniil’s sharing in ETHDenver, he spoke about the kind of direction he’s going in, what’s going to come next, the kind of things he’s building and I think some of you caught on very sharply on Telegram what this may mean. So, i think today we’ll give a few more details about it, without spoiling too much because we’ll actually give out a bigger announcement about it, we’re just finishing up some of the details. But for us this is a big development, so it’s really important for us. As Tom said he has a CEO piece in his words, laying out the Whys, laying out the Whats, so i really encourage you to read it.
Tom: Yeah, so we’re not going to reveal the details because it’s a transition process that will take a couple of months so when we’re ready we’ll reveal everything, it’s a lot more than just a few roadmap changes or something like this. We’re taking a lot of new directions here. But to summarize, initially PARSIQ was built as a platform, a platform that anyone can build their own use case, build their own solution on.
And this is both good and bad, the good is that it has so many use cases, but the tricky part is that getting mass adoption for a platform in this space is not so easy. If you take a look at other platform type products, whether it’s L1 blockchains, L2 solutions, usually these platforms have to spend a lot of money, usually tens of millions or more to get people to build on them, so they’re actually paying, incentivising builders to get adoption. And I’ve looked at gaming platforms, gaming blockchains, other types of platforms and a lot of them have very little developer activity, not a lot of people building because they chose not to spend the money to get them onboard and pay the money to get them to come and build.
Compared to some of these I think PARSIQ has done quite well organically, but that being said, some of these platforms, what they did was they built like, killer apps on their own platform which were extremely popular and used. So I think in our case it’s the same, we are our own best client. We have spoken to a lot of big, big players like one of the biggest exchanges in the world, one of the biggest DEX’s in the world, a few governments and other players and always our existing platform, our existing technology covers 60–70% of their needs but there’s always that gap that needs them to be filled with custom designs. And that’s the problem, we do a million things, but there’s a lack of clear focus. So we decided we will be building products specifically right now we’re talking about one flagship product on top of our existing tech stack.
The platform will still be there, people can build on it and we’ll onboard the bigger enterprises by doing a little bit of custom work for them but the main direction is the flagship product built on the PARSIQ tech stack, the PARSIQ platform. And that product will have a clear focus, so it will be targeting Web3 projects, Web3 companies, it will be very focused on Protocols and DaPPs so that means DeFi protocols, NFT DaPPs, any kind of decentralized blockchain applications and it will be tailored made for all these protocols and DaPPs to use, as well as any 3rd parties to use to get data from these protocols and DaPPs. So, we’ll be going deep into all these decentralized finance applications and NFT applications to get custom data that clients can access through our new APIs and our new tool sets. More details will be coming but that’s the main idea.
But with that will come a lot of changes, there’ll be some rebranding, so this is not a pivot, this is like a logical expansion of PARSIQ’s original vision. Yeah we’re taking it a level further, it will be something that no one will require any kind of additional work, it’ll be something that they just come and they use, and for this we will be working hard to onboard all the major protocols and DaPPs to use us, to become the industry standard for this, to be the fastest and the best way you can get Protocol specific and DaPP specific data. Other important things, we will also be doing a B2C or consumer facing version of this product, think a little bit similar to Etherscan but a different kind of functionality, so anyone can come and they can look at the data of these DeFi Protocols, these decentralized applications and they can use that data, they can subscribe to PARSIQ triggers directly from this public facing front and we think this will get a lot of retail adoption.
That’s just a small piece that I’m talking about, the vision is much bigger than this and it will come with a different type of messaging, a slight rebranding and it will have a much clearer focus and use cases. So I think this is the best way forward for us, to get the adoption we want, to achieve our goals while still retaining the original platform, continuing to work on it and continuing to onboard the large enterprises there. We will also be doing a mobile app that will help us with network effects. So the general idea of the app is that it will be integrated with the aforementioned DeFi Protocols and NFT applications and on the other side there will be B2C users who can subscribe to all kinds of events from these Protocols and Dapps that they’re using specifically.
It actually opens up all kinds of possibilities that I’ve never seen anyone do in crypto, so more on that once we are ready to reveal the full picture. We will also be more focused on Web3, we will be introducing in this flagship product aspects of decentralization, so the product will be partially decentralized and there will be open-sourced parts where others can contribute, developers can engage and build. So we’re going full Web3 mentality here. In addition it will involve more possibilities for token holders to contribute, more let’s say voting rights, more rights in general for token holders, more incentives, more utility for the token. Quite a lot that i’ve mentioned here so i’m just going to stop here and let Rong Kai say a few words and then jump into the questions.
Rong Kai: Yeah thanks so much Tom, Tom has shared a very good overview of the kind of things that are happening behind the scenes, but it will take time. I think he mentions a little bit about the roadmaps in his CEO piece today. I think we’ll go straight into a couple of things, the roadmap is one of those things, we’ve been talking about it, it was ready etc, then we realized that a lot of things had to change and we had to make a strategic decision around it.
I think I mentioned once on telegram that we want to do it once and do it well. And that roadmap is not just for the community, it’s for everyone else, for those who have never heard about us before, so that roadmap will come together with the big announcement that we’re going to make, a new focus that we’re going to go into, i think that is where i think it’s a better timing in terms of releasing a new roadmap. I think, that being said as well there’s probably a lot of questions you have but i want to address a few things, I think Tom mentioned there’s a lot of possibilities coming from this as well, obviously this is something that’s built on top of PARSIQ as a platform, it’s a flagship product of which PRQ is of course still at the centre of it. So, token holders please don’t worry, there’s going to be a lot more utilities, a lot more engagement, a lot more kind of upfront exposure for our token, I think that’s number one.
The next part is, why do we even do it in the first place? I think Tom mentioned part of it earlier but I just wanted to add that we were trying to point out all these kinds of weaknesses within our current setup, our current system. And it sort of becomes a logical conclusion, even when I first joined the company and there were a lot of talks about “What is the focus of the company?” and we talk about focusing on B2B, B2D, building something a bit focused. And even then the B2B system is very big, you want to start a business, what business? Exactly how? Exactly what? Who are our main clients? And as we go deeper and deeper into it, okay you want to go Web3, okay Web3 what does it mean? What sort of Web3 clients? And it goes deeper and deeper and we realize our product, we can’t close the loop for a lot of these clients. We do a lot of custom work for these big clients coming in and then we realize that okay, there’s nothing wrong with custom work per say but we’re also spending a lot of resources on other stuff as well.
So, we want to be a bit more focused on this, we want to embrace doing custom work at one point. On the other hand we want to make sure our platform can close the loop. By “Close the loop” I mean, when we go to a client we can solve 100% of their problems, not 60% or 70% or 90%. We want it to be 100%. In terms of when we say “Close the loop” it’s way easier for them to build on us, in terms of the devs using their own language etc, connecting to our API but there’s a lot of going completely no code at all. How do we make it plug and go? How do we make it easy for people to access our platform? And that’s really exciting but of course it means that the roadmap is changing. And we want to put out a good one to you guys. I think at this stage it’s probably a good time for us to take some questions.
Tom: Yeah, before we jump into the questions i just want to reiterate once again that this is not just a product related thing, the expansion is much more than that, it involves the token, the token holders, the messaging, the branding so it will come with a new type of marketing, new kinds of approaches to most things, it will come with new clients and projects that already use it, that are waiting for it, it will come with new exchange listings by the way, 2 of which have been green lighted. Really big ones, not THE biggest ones but big ones, one of them is like a top 3, top 5 exchange right now in terms of volume. And we will time it with this expansion. So lots to look forward to.
Tom: So, the way Rift works, they provide this product for DAO’s and project teams because all the DAO’s and project teams have some kind of token reserves of their own token and they just sit idle. So what Rift offers is that the DAO’s can deposit their token reserves into Rift Finance, Rift on the other end will match it with ETH or USDT to form the other side of the liquidity pool and the result is that the DAO earns from the trading views and also their liquidity of DEX’s. The test went well and we’re looking forward to their mainnet launch to actually use it properly to get better liquidity on all DEX’s for PRQ
Tom: Currently, it’s around 97% of the subscription based revenue.
Tom: Well if you’ve been following IQ Protocol we’ve announced dozens and dozens and dozens of projects who are onboard to integrate the IQ Protocol and their NFTs will be part of the IQ Protocol NFT Rental marketplace. Which should be ready in March, might be some audits that may push it to the beginning of April, so End of March/April you should see it live.
Tom: Yeah, well we have a lot of investors in the private rounds, the fundraising rounds of IQ Protocol, we’re planning to announce them in about a week so you’ll hear more but there’s all kinds of folks there, very helpful investors including angels, founders of some of the biggest projects out there. There’s gaming guilds, there’s big VCs, VCRs of exchanges, really big ones. So we’ve tried to add investors who could really add value that would be helpful in building the vision of IQ Protocol.
Rong Kai: Okay so, things that we can share are obviously still under a lot of discussions, this has been very positive so far. If you think of government agencies worldwide, clearly they’re not Web3 clients and their concerns are obviously a lot more traditional in a sense. Since we are a blockchain service provider obviously they’re looking at the blockchain applications for a lot of things. That is where, without spoiling it too much, once we close certain deals i think we’ll share with you guys how big it is, what sort of things we’re looking forward to. But I think that also shows the person how versatile PARSIQ is because they’re coming to us with different kinds of use cases in kind, and we can more or less meet their requirements. A lot of it is really building something customized, as government clients they are big players, big paying customers and we want to make sure that we give them exactly what they need. So, it involves more custom work, tailoring what kind of outputs they want which are often not traditional Web3 kind of clients that we get, they’re traditional in the traditional sense. The kind of output that they need may seem a bit different compared to the Web3 clients that we’re looking at but that’s the kind of angle that we’re looking at as well. If we can help you solve your problems on blockchain and you’re a big enough client obviously we are open for custom work. That’s the same now and that won’t change even when we have our focus on the flagship product as well.
Tom: So burn rate varies, obviously it’s in the hundreds of thousands per month but it varies because one thing is costs we can estimate, like payroll and cloud servers and so on but there are costs that are not recurring which is marketing costs, it’s costs like exchange listings etc We have enough runway to sustain for multiple years, and in that time we hope to get some decent revenue. Worst case scenario, we can always raise more, there’s pretty huge interest from both crypto and traditional VCs in PARSIQ, i have a couple of non-crypto native VCs reaching out to me each week to learn more, because they’re interested but i don’t think there’s a need, we have reserves, we have a treasury that we’re managing and some of the income comes from that. So we’re good for the next 2–3 years.
Tom: Yeah, well PRQBOOST is mainly used to ramp up your LP rewards on the PRQ/ETH Uniswap pair, so those who have actually been using it to boost their rewards I think have done quite well. I will see what we can do about improving liquidity on the PRQBOOST pair, eventually we will end the program or replace it with some other program, but we will give you advanced warning and then by that time we’ll announce what will happen to the PRQBOOST token. We have a lot of ideas for this.
Tom: Well yes, think of it like this $PRQ will still remain central and essential for anything built on the PARSIQ platform, including this flagship product that we’re talking about, the Web3 focused product.
Rong Kai: Just to add, for this new flagship product, the vision hasn’t changed, the mission hasn’t changed, the central message hasn’t changed, we want to be this one-stop blockchain solution provider, so obviously then the token hasn’t changed.
Tom: We’ll do it. We’ll do it this year.
Tom: So this Web2 to Web3 connection, it’s not going anywhere and the PARSIQ platform itself will remain, will go ahead with the triggers, this is not changing. But like I said, this focused product will take the best parts, from the PARSIQ platform, the triggers, the data, the historical data from the retrospective triggers concept and make it into a focused thing that solves real problems and use cases for Web3 builders like applications and DaPPs and protocols. So it’s a sort of evolution, the concepts aren’t going anywhere.
Tom: Well, I mean the rebranding is still an ongoing process, we haven’t settled on most of it yet, it’s a work in progress but i think we will be keeping PARSIQ as the main brand, the main technology stack, the main platform upon which great applications, data stream applications are built.
Rong Kai: I’d like to add to this that there’s a lot of ways we can go about doing it as well and we need to discuss about that, in fact i’m flying into Tallinn next month to go over a lot of strategic issues with Tom, with Alan, with the guys in the office. So a lot of the rebranding is really focused on the new product, what do we call the flagship product. Is this something related to PARSIQ, PARSIQ-Something? Or is it something completely new, that is something we need to ask. I think PARSIQ itself, Parsiq.net, we have a name for ourselves and I don’t think it would make any sense for us to abandon it in any meaningful sense. I think what it might mean is having something “Powered by PARSIQ” or something along those lines, it doesn’t change the name of our token, $PRQ. And it doesn’t change many things, exactly how it turns out though will depend on how we discuss it and the kind of data that we get down the road. And of course we announce it when the company comes to a decision, and then we can tell you guys.
Tom: Well I’d say it improves it, so like i said we’ll be focusing on DeFi Protocols and decentralized applications, NFT applications with this new flagship product and its direction. IQ Protocol will be one of the clients of PARSIQ, one of those Protocols will be IQ Protocol. But we aim to get most of the biggest protocols onboard to use this product and any third parties who use those protocols or who rely on data from those protocols.
Tom: So, the rebranding does not affect any previous partnerships, previous integrations, they all remain. We actually have new ones in the pipeline, like Danny mentioned in Telegram we have 2 new blockchain integrations which are pretty much ready for awhile now. Timing is key here. But the new product will allow us many more synergies with some of the biggest Web3 projects in the space, really showcase that Web3 blockchain data will be built on PARSIQ, especially for DeFi and NFT Sectors.
Rong Kai: Perhaps I can add to this as well, I think asking our best clients has always been the case, when we talk about network effects and previous engagements, using tech from each other, tapping onto a bigger pool of clients etc, it’s a lot of what Tom said is learning from experience on both sides. So i think even internally it’s something that we’ve discussed on BD side when we talk to clients we realize what they need versus what we can do, the product teams and the tech teams when they look at it and they say that hey what’s limiting us, what’s the kind of angle that we want to go for. And strategically from various parts of the company, we looked at it and we realized that okay if we go down to the lowest denominator, what are the one or the few trip points.
And that’s where we have this renewed focus coming in, we realize that this is the direction that we want to go for, this is something that I shared with the company as well. When i first joined the company, I think in my second call with Alan I was mentioning to him that one of the greatest challenges for CEOs of startups is when they’re first building a new product, whatever they built before is great, it’s good enough, but when they reach a kind of growth phase they realize that what they’ve done previously is limiting the growth.
And, therefore they have to make some decisions around it that can include, sticking with it and building on top of it and then there’s a spectrum of decisions all the way to the extreme end where they need to rip down the whole thing, we’re not breaking down the whole thing, our platform is still there, we’re using the technology, but it’s probably somewhere in the middle, there’s a renewed focus, we’ve found a kind of sweet spot that we want to go for. Based on our experiences and how the Web3 market is going right now, the kind of needs that’s out there, this is very different from even just one and a half years ago. The number of competitors or number of other projects coming in is very different from the current market right now. And obviously we need to respond to the times and ideally we need to walk in front, rather than chase.
Tom: Well hopefully not too soon, i mean the Altcoin markets have been basically obliterated and the interest in trading them is quite low so hopefully it won’t be too soon.
Tom: Well actually the new flagship product is something that actually ties in well with what you’re describing, because it will have aspects of decentralization and there you will have live usage and more involvement, more information about the token utility for holders and more ability to participate in decisions, much more.
Tom: So it’s not a complete rebrand, we just discussed this the PARSIQ brand will remain, it will always remain the original tech stack, the technology platform for building on blockchain data streams, it’s more of a focused approach, with more focused messaging towards Web3 and DeFi, NFT space and yeah hopefully it will bring more interest and excitement as well.
Tom: Well it’s still on the roadmap, with no exact ETA, but for the new flagship product it actually fits really well there so just stay tuned and we’ll release more details about the whole new expansion.
Tom: Yes it will still be tied, i think it will increase our revenue substantially and usage, but it will have more perks, the token will have more utility than just being staked in IQ Protocol. We’re going to go more the DAO route and give token holders more say in different things, including what happens with the new product and what kind of protocols we will work with. A lot more coming, only advantages for token holders.
Tom: It’s tricky because we pretty much become a fund and that means regulation, we have a separate vehicle for the investments and we use those proceeds to increase our runway, so i don’t think it’s possible from a regulatory standpoint.
Rong Kai: Actually that’s something I want to know as well. But i think long-story-short we have a timeline but there’s no dates on it. The idea is that everything is going to be guided by the minimum viable product MVP that’s going to come out. Right now the tech team is discussing this and that date will come out soon, at least internally.
Tom: Actually the next question ties very well into what we’re discussing.
Tom: This is the same, pretty much the same question, what is the approximate timeline, so the question is do we lay out the full plan before we actually implement it, or when we are in the process of releasing this MVP or once we’ve built it out. It’s a tricky thing because you know announcements of announcements, whether it’s actually a good strategy or whether we actually deliver something first before laying it all out and we tie the whole rebranding to the marketing push, the new big listings and everything closer to the launch. So while we have an approximate timeline for the MVP, when this, when that. When do we full tilt announce everything and do the rebranding? That’s still up in the air.
Rong Kai: I think in terms of the situation right now, of course we sort of know the basics, we know the structure, we know the boundaries, but the content side may change as we build along and then realize that certain things are a dead end or new paths open up and we realize we should take these new paths, so if you communicate too early, things are going to change constantly and it doesn’t make sense for the community as well and for those outside who do no know about us, it will be very confusing for them as to what exactly we’re doing. So, there’s a best time to let you guys know but i would say that for the community at least you guys don’t have to worry because it’s not going to be the case where you only find out just before the MVP comes out, you’ll know certain details as they’re released along the way one by one.
And at a certain stage we’ll involve you guys as well, in fact the community team we want to encourage some of you to gather feedback at an early stage. We want to really engage those of you who are very active, who have been supporters from the start, does it make sense for us to engage the entire community because there’s 7k+ people on telegram, not everyone is going to respond but there’s also a lot of noise, a lot of different opinions but it’s good to engage a smaller group first, to get better feedback and we can adjust what makes sense for the community. So, at different stages I think more and more of you will find out about different things. I think it’s going to be a very busy year for us because of that but I think that it’s something that’s worth doing.
Tom: Anatoly’s still onboard, he’s the blockchain architect so he’s helping us with the architecture concepts and everything else, which is what he’s always done.
Tom: Well i guess it will be in stages and the first stage is estimated in Q2
Tom: So Ncase is less of a priority than the new expansion that we’re taking, this comes first.
Rong Kai: It’s on the roadmap but the roadmap, there’s no dates, it’s on the lower end that you see. Right now a lot of our resources have to be pumped into this, because we need to focus our resources into things that the market needs, the web needs, of course Ncase is something that the web needs as well but we want to throw out resources into the things that have the highest returns right now.
Tom: Well we’ve managed to find good ones, we’re always in search. Of course it affects product development, but we’ve made some changes internally, shifted some focus and I think we’re doing pretty well now but we will be expanding the engineering team.
Tom: Well IQ Protocol is a completely new product, what we’re talking about is a data product, built on the PARSIQ technology, so in a way it will be a separate product but it’s built on the PARSIQ platform, the PARSIQ tech stack so it makes sense for it to be an integral part of the PARSIQ Ecosystem.
Rong Kai: I think the thing about the IQ Protocol as well is that it’s use case, even vision, is very different from PARSIQ as a Blockchain data service provider so it makes sense for IQ which has it’s own token to stand alone in that sense. Completely different teams. But the new flagship product is built on what we have for PARSIQ. So if you look at it that way it’s PARSIQ in a new evolution.
Tom: Yeah so, to sum it up: Pretty exciting times ahead, hopefully for us and for the community as well because we’re expanding the vision, all the original parts that you know, that made you want to be part of this project, part of this community will remain. And we are also adding new functionality, new utility to both the token and the technology and being laser focused on the Web3 sector which will again allow us to work together with some of the best teams in DeFi, the biggest NFT projects and more. So i think it’s a win, win for everyone, the community, ourselves, other projects building in the space and anyone else who wants to leverage blockchain data.
Tom: No new token, it will be built on the PARSIQ platform, powered by the PRQ token. So again that means new utility for the token, new revenue streams, more eyes on the project and the token. You know the rebranding, the new direction will coincide with big exchange listings that have already been green-lit and new approaches to social media marketing. It’s a lot of work. But that’s good though, it moves so fast, you have to be on your toes and be ready to move with the industry. So hope you will be joining us on this journey, 2022 will be a big year for PARSIQ. We want to thank the community for supporting us for so long, and we look forward to growing the community at a very fast pace.
I think we’re out of questions, we can wrap this one up. We have other things coming up today, the IQ Protocol roadmap separately will be released soon and my first CEO letter’s publication on Medium will come out today as well, so check it out if you have the time. So thanks for joining this AMA and stay safe out there.
PARSIQ is a blockchain monitoring and workflow automation platform connecting on-chain and off-chain applications in real-time, providing transaction notifications for end-users. With PARSIQ you can connect blockchain activity to off-chain apps and devices, monitor and secure DeFi applications, and build custom event triggers and power real-time automations.