Pledgecamp FAQ

(Last updated Sept. 23, 2018)

What is Pledgecamp?

Pledgecamp is a decentralized platform that aims to solve longstanding issues of trust and misaligned user incentives in crowdfunding.

What is Pledgecamp’s mission?

We believe that good ideas can come from anywhere, and no one should be denied the opportunity to become an entrepreneur. Our mission is to give everyone that opportunity.

Why blockchain?

Blockchain allows strangers across the world to engage in complicated financial transactions within a programmable framework of trust. Without it, key benefits offered by Pledgecamp’s new features would be impossible.

Crowdfunding is decentralized funding and innovation that aligns perfectly with the decentralized nature of blockchain technology, and it is an industry with key problems in the area of trust.

Pledgecamp utilizes blockchain technology to be the first to offer Backer Insurance, an escrow wallet framework that allows users to self-regulate without requiring intermediaries. A native token also incentivizes engagement with the platform, and aligns all users to act in the interests of the group as a whole. These improvements will be essential to fix crowdfunding as we move together towards a vision of global innovation.

What makes Pledgecamp different?

Pledgecamp provides security for backers in the form of Backer Insurance and transparency requirements for creators. Blockchain allows users to mediate disputes and guarantee financial enforcement without requiring a third party mediator or custodian.

A decentralized marketplace further allows participants to be compensated for their contributions to the network, and to allow all people to join regardless of geography or demographics. A native token ensures that incentives are aligned, good behavior is rewarded, and that users benefit when their actions lead to the health and growth of the network.

What is Backer Insurance?

Backer Insurance is an escrow wallet powered by a smart contract which enables backers to protect campaign funds from misuse by creators. It provides a financial incentive for creators to be better-prepared before launching their campaigns and more realistic when setting initial expectations. Should creators fail to deliver on their promises, backers will have the option to recover the Backer Insurance amount instead of granting it to the creator to finish the project.

What benefits do creators receive?

Although many of the security features seem designed for backers, they will ultimately benefit a responsible creator as well. For example, campaign deposits and Backer Insurance are fully refundable and received by the creator if they simply keep their promises and provide transparency about their intentions to backers. In return, creators will pay significantly less listing fees, or even no listing fees, which can save much-needed capital for an entrepreneur.

In addition, access to the gig economy, marketplace features, and knowledge center on the platform provides much-needed access to resources and guidance that can be sometimes more important than straight cash for those building their businesses. For pros and first-timers alike, Pledgecamp will provide the support and opportunity needed to everyone, not just the well-connected elite.

And finally, a quality creator recognizes that a happy backer leads to a happy creator. If backers have confidence in the system, they will be more willing to provide the capital that creators are seeking. As stated in the White Paper, less than one-third of Kickstarter users return to back a second campaign — this equates to potentially millions of dollars left on the table due to low confidence, that we aim to recover for creators with our new mechanisms of trust.