No ICO, NO Problem —UND is getting “listed” tomorrow. The new Paradigm for Blockchain projects
As we discussed in our “How to ICO IN 2019” article last year (it is 2019 now!) —as our industry grows up, a little dose of reality is setting in where “project success” has more to do with value being created in terms of “usable product” rather than “list on exchange and pump price.”
In the previous paradigm — a “success” meant collecting more money than a competent team would ever need to actually build out what they claimed they were going to build and then spending most of that money to “pay for exchange listing” and other marketing related activities along with a healthy cash-out for founders and advisers.
Then the project would get to an exchange and “go up in price” because of the marketing hype to bring in new investors.
That would generally be about the lifecycle of a project- the advisers got their cash out and are done, the founders raised tens of millions in ETH and likely don’t have the skills or discipline to actually build their idea to completion even if it was a good idea in the first place. Even if they did, they probably have too much money in their bank so really don’t care by this point. A few successful “founders” found fame by abandoning their ICOs and just starting hedge funds to invest in other ICOs with the money given to them. . .
Of course the “new investors” money was just to pay off the earlier investors.
This was the billion dollar industry we just came from — just to say it clearly.
So that is not going to work anymore on any sort of scale — so we need to grow up a bit and ask where are we creating our value?
From our perspective- “listing on an exchange” is not the big glorious exit and liquidity event- moreso it is just a whisper of an early step.
Case in point, tomorrow UND is listing on Digifinex — one of the top exchanges for the Chinese speaking market. We are listing there because they found our project while we were doing Workchain development for one of their colleagues and asked us to list. Easy as can be!
Is this a “liquidity event?” No not at all because we didn’t have an ICO — Yup — if you have followed Unification at all, you will see that in 2018 we sorta planned on having an ICO, but after seeing the expectations of investors and the realities of the business model we pulled back.
This is what we did instead:
1 — We raised a small amount of private funding (under 1million) to develop out our product. This “small” number confuses some “ICO Experts” but makes sense to people from a traditional tech background — you literally don’t need millions of dollars to build out a robust tech product. In fact, Silicon Valley knows that too much money on a project usually kills all founder incentive.
2 — Our business model is to release the UND Mainchain to the public along with the protocol to deploy Workchains. Anybody can access the code to use and deploy these — it is open source — but we have a dedicated enterprise division who is working around the clock with enterprises, governments and developers and billing them for robust custom implementations. Yup — it is the Linux/RedHat model — RedHat just sold for about 33 Billion dollars if validation of this model is required.
3 — There is a token, it is called United Network Distribution — (UND) and is needed to power the network. We judge this to be a pure-utility token because it can be purchased from the foundation for a fixed price into a locked wallet. These locked wallets can only be used to pay network tax/gas to transact on the network (they can’t be resold, traded, staked or speculated)
4- The Mainchain uses a DSG (Distributed Stake Governance) consensus model — that practically means that there are 96 Validators who secure the network and receive tax/block-rewards — These Validators elect themselves by staking unlocked UND tokens. (not the same as locked tokens purchased from the foundation)
5 — We are listing on exchanges that ask us to list so that potential validators can accumulate the unlocked UND needed to become one of the 96. Think of it as as the (pre-uber) NYC Taxi Medallion market.
So to summarize — our “profits” come from billing clients for enterprise dev and selling locked Utility tokens for those wanting to use the network at a fixed/predictable cost. The unlocked UND tokens on exchanges can be bought/sold at free market costs and are likely accumulated by those wishing to stake to become Validators.
This is a real tech-company dynamic where we “do well” when we provide useful software and services to our users.
So — You may have generally gotten a general idea of the ecosystem and can certainly explore our website and whitepaper to get into the details — especially of interest is page 6 of our whitepaper which goes over the scaled block rewards for Validators.
In the meantime if you are asking yourself how you can be involved there are a few ways
1- As of the morning of Feb 22nd (Singapore time) — UND will be listed on the Digifinex exchange. This is a top 5 CMC exchange and primarily for Chinese speaking users -however a UND token is still a UND token. There are some tokens in circulation from technical advisers and bounty hunters who will be placing those on the exchange. If you were thinking about being one of the 96 Validators once Mainnet opens then this is a good time to begin your accumulation. We are not doing a large amount of press to start as we want the eco system to develop in a controlled manner so this may be a great chance to get in early.
1a -In March we will be announcing listings on two more exchanges (can’t say the name yet) they are a well known Korean exchange and a well known English speaking exchange that most of you likely use. Project interest will be peaked at this point as in March we will also be hosting numerous public events in Hong Kong.
2 — If you are a developer, enterprise or government, or maybe even a current blockchain project planning on “building on ETH” — we have a much better solution for you. Talk to our dev-team about how we can make your life 100x easier by deploying your own Workchain instead. More details on the page, but the short version is that a Workchain has the benefits of a blockchain in that it has public validation, but is designed in a way that speed is predictable fees do not need to be paid by the end users. We have a few examples of Workchains we are deploying on our Enterprise page.
3 — Get involved in the community. Even if you don’t want to become a Validator or don’t want to develop out your own project, there are numerous “middleman” opportunities for reselling workchains, system integrations or general community support. We are a tight and agile organization and are open to ideas for collaboration. You can find us always on our official Unification Telegram.
I think that is all for now, it has been a long road to get here and an even longer road in front.
See you there.
Neyma Jahan is the founder of the Unification foundation and can be followed on twitter at http://www.twitter.com/neyma