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Update on Launchpools

A consensus protocol for startup, VC, and SPAC investment

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A consensus protocol for startup, VC, and SPAC investment

Andy Singleton

Blockchains use consensus protocols to bring strangers into agreement, at huge scale. It’s time for finance to catch up. Launchpools is a consensus protocol for fundraising. Investors can indicate interest in a deal by submitting refundable stakes. Fundraisers (sponsors) can engage quickly with potential investors, and then build consensus around final terms.

Get ready for a fun summer
  • Workflow and React UI are nearly feature complete.
  • We’re still changing the smart contract structure. We should have stabilized this earlier. Our goals include consolidating the stakes into a secure and immutable StakeVault, handling coins that have variable value, and guaranteeing delivery of investments.
  • Tokens will be available — earned but not sold.
  • Our partner Otoco will skip this product cycle. They are planning to sell their deal with a known price and bonding curve.
  • Instead, we’re planning on a beta offering of $20M of MaxUSD. MaxUSD is our flagship interest-earning stablecoin. Early stakers will get extra governance tokens, while not committing to take any risk.
  • Users should be able to try Launchpools in early July

Most people assume that a launchpool is like a standard launchpad — a portal for selling a specific deal. In this article, I’ll review some of the differences between a launchpad sale model and the Launchpools escrow model.

Goals

  • Reduce startup costs. Sponsors can test investor interest before committing to the legal and administrative costs of forming a fund or company.
  • Improve compliance. The escrow period gives sponsors time to design a deal that is compliant for the investors they are attracting, and provide time and incentives for investors to go through a qualification process.
  • Reduce costs to investors by allowing them to hold interest-earning and appreciating assets as stakes. Reduce taxes by allowing them to stake assets without selling and creating a taxable event. Most importantly, reduce risk by allowing them to un-stake at any time.
  • Globalize by giving remote sponsors and investors a way to build trust
  • Add incentives for filling up a deal quickly. The stakes reserve a place in line. As deals gain momentum, the early places in line gain value. We can enhance that value by rewarding early stakers.

This process adds some DeFi magic to the features of a SPAC. Two features stand out as improvements over a SPAC.

  • The assets remain under control of the investor, in an escrow contract. They don’t become an investment until after commitment. This postpones organizing and compliance costs.
  • Investors earn their own interest and returns. If they want to earn returns from a liquidity pool or a loan pool, they can buy those pools and stake the interest-earning token.

We’re proposing to show deals at an early stage. Most deals at this stage will end up fading away, which is good and normal. We can remove the cost from that discovery process. Successful deals will get investor validation, and become stronger and stronger.

Workflow

We are exploring some variations on the Launchpools workflow.

  • Easy. Investors do not need to commit during the commit period. They have time to analyze the offer and unstake. At the end of the commit period, remaining stakes are automatically committed.
  • Launchpad. If investors stake and commit to buy the deal at the same time, we have a traditional launchpad.
  • SPAC. If investors support sponsors in a search for investment opportunities, we have a low-overhead SPAC. Launchpool incentives were inspired by SPACs. Note on current events: Launchpools are actually somewhere between a SPAC and Bill Ackman’s newly invented SPARC, described as “a better product, for investors, than a SPAC.” A SPAR gives you an option to be first in line for Ackman’s next deal, just as a launchpool gives you a position in line for a deal.
  • Venture capital. Launchpools can support VCs with a trustless capital call system. We are pulling to together a VC group to figure out where we can use this, and other DeFi innovations. Some ideas: We can give early stakers participation in GP shares (coop fund). We can make commitments be automatic for a selected VC (rolling fund). Investors often have narrowly targeted interests, and they might post to a sort of private SPAC that takes proposals from VCs that want to lead a deal in that category (like a search fund). Investors could use their stakes as pooled collateral to get a place in several categories.

We’re ready to get tokens out to the community, under a compliant model where we never sell the tokens.

Get them by participating. We can offer tokens to project contributors. Launchpools will give tokens to investors that buy deals, and we’ll program it to give more tokens to early stakers.

Burn them to get into hot deals. We propose to reserve the right for tokenholders to jump into the line for 7% of an oversubscribed deal.

I am a big supporter of continuous improvement. In the early stages of product development, we should fix and modify our product, every day. This will result in a better product. It will also result in fewer outstanding bugs, because bugs are fixed quickly.

However, continuous improvement is dangerous. A rapidly changing product will have new bugs, and introduce opportunities to steal or lose stakes. Ideally, the stakes will be protected from that. The money should be held by a smart contract that is audited, immutable, and trustworthy.

That is why we decided to keep the money in an immutable, audited contract that we call the StakeVault. StakeVault makes sure that we do not send stakes to the wrong person, or lose stakes. We gave the StakeVault the minimum logic required to accept stakes, send back stakes to the original staker, and only deliver them to the sponsor after specific approvals.

If something goes wrong with a pool, we can shut it down and send stakes back to their owners. And, pools will always have a date when they expire and send back stakes.

The remaining Launchpools logic does not hold money. We can change it and improve it.

Contact us on the Launchpools discord channel to get involved as a project contributor, investor, or deal sponsor.

Maxos builds DeFi for the real world. We bring together experts to figure out how to rebuild specific real-world financial services. Then we create, validate, and launch.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.datadriveninvestor.com/update-on-launchpools-e4c14254a077?source=rss——-8—————–cryptocurrency

Blockchain

Bitcoin (BTC) Surges Past $40,000 Resistance With High Exchange Outflow, $50,000 Next In Sight

Earlier today, Bitcoin (BTC) finally moved past its crucial resistance of $40,000 levels and is currently trading 2.39% up at a price of $40,350 with a market cap of over $750 billion. As per the on-chain data provider, the Bitcoin price hit its 3-week high and a recent push above $40,000 with a massive exchange

The post Bitcoin (BTC) Surges Past $40,000 Resistance With High Exchange Outflow, $50,000 Next In Sight appeared first on Coingape.

Published

on

Earlier today, Bitcoin (BTC) finally moved past its crucial resistance of $40,000 levels and is currently trading 2.39% up at a price of $40,350 with a market cap of over $750 billion. As per the on-chain data provider, the Bitcoin price hit its 3-week high and a recent push above $40,000 with a massive exchange outflow. The Bitcoin exchange flow balance turning negative on Monday was certainly a bullish indicator for the world’s largest cryptocurrency.

Bitcoin has been showing bullish momentum over the last few days making investors and analysts hopeful of its journey to the north. Besides, El Salvador making Bitcoin a legal tender has caused a major buzz with more Latin American countries showing interest in joining the bandwagon.

As per market analysts, if Bloomberg manages to move past the 200-DMA above $40,500, it will be setting up itself for its next move to $50,000.

At the same time, Bitcoin (BTC) continues to receive praise and backing from global billionaires. On Monday, June 14, American billionaire and hedge fund manager Paul Tudor Jones showered praised for Bitcoin saying that it serves as a great portfolio diversifier. He also announced a 5% portfolio allocation to Bitcoin.

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MicroStrategy to Sell $1 Billion In Common Stock to Buy Bitcoin

On Monday, June 14, business intelligence firm MicroStrategy made two big announcements. First that it successfully completed the conversion of $500 million worth of corporate bonds due 2028 and the company is mulling to invest this amount in Bitcoin. As of now, MicroStrategy holds more than 92,000 Bitcoins in its treasury with its total investment going past $2.2 billion.

The second news is that the company is now considering the public sale of Class A Common Stock through an open market agreement.

In this filing, the firm wrote: “We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin”.

The firm further noted: “The concentration of our bitcoin holdings enhances the risks inherent in our bitcoin acquisition strategy. Servicing our debt will require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our indebtedness.”

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

Handpicked Stories

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://coingape.com/bitcoin-btc-surges-past-40000-resistance-high-exchange-outflow-50000-next-sight/

Continue Reading

Blockchain

Bitcoin (BTC) Surges Past $40,000 Resistance With High Exchange Outflow, $50,000 Next In Sight

Earlier today, Bitcoin (BTC) finally moved past its crucial resistance of $40,000 levels and is currently trading 2.39% up at a price of $40,350 with a market cap of over $750 billion. As per the on-chain data provider, the Bitcoin price hit its 3-week high and a recent push above $40,000 with a massive exchange

The post Bitcoin (BTC) Surges Past $40,000 Resistance With High Exchange Outflow, $50,000 Next In Sight appeared first on Coingape.

Published

on

Earlier today, Bitcoin (BTC) finally moved past its crucial resistance of $40,000 levels and is currently trading 2.39% up at a price of $40,350 with a market cap of over $750 billion. As per the on-chain data provider, the Bitcoin price hit its 3-week high and a recent push above $40,000 with a massive exchange outflow. The Bitcoin exchange flow balance turning negative on Monday was certainly a bullish indicator for the world’s largest cryptocurrency.

Bitcoin has been showing bullish momentum over the last few days making investors and analysts hopeful of its journey to the north. Besides, El Salvador making Bitcoin a legal tender has caused a major buzz with more Latin American countries showing interest in joining the bandwagon.

As per market analysts, if Bloomberg manages to move past the 200-DMA above $40,500, it will be setting up itself for its next move to $50,000.

At the same time, Bitcoin (BTC) continues to receive praise and backing from global billionaires. On Monday, June 14, American billionaire and hedge fund manager Paul Tudor Jones showered praised for Bitcoin saying that it serves as a great portfolio diversifier. He also announced a 5% portfolio allocation to Bitcoin.

advertisement

MicroStrategy to Sell $1 Billion In Common Stock to Buy Bitcoin

On Monday, June 14, business intelligence firm MicroStrategy made two big announcements. First that it successfully completed the conversion of $500 million worth of corporate bonds due 2028 and the company is mulling to invest this amount in Bitcoin. As of now, MicroStrategy holds more than 92,000 Bitcoins in its treasury with its total investment going past $2.2 billion.

The second news is that the company is now considering the public sale of Class A Common Stock through an open market agreement.

In this filing, the firm wrote: “We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin”.

The firm further noted: “The concentration of our bitcoin holdings enhances the risks inherent in our bitcoin acquisition strategy. Servicing our debt will require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our indebtedness.”

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

Handpicked Stories

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://coingape.com/bitcoin-btc-surges-past-40000-resistance-high-exchange-outflow-50000-next-sight/

Continue Reading

Blockchain

$1.3M worth of BTC donated to Bitcoin-hodling charity in less than 3 weeks

The Bitcoin Water Trust has already received more than $1.3 million worth of BTC donations despite launching just three weeks ago.

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New York-based non-profit, Charity: water, has received more than $1 million in BTC donations to its Bitcoin Water Trust within three weeks of the trust’s launch.

The Bitcoin Water Trust was announced during the 2021 Bitcoin conference in Miami. The initiative attracted attention for its “HODL MODL” treasury management strategy — with the non-profit accepting donations in Bitcoin that it will not touch until 2025.

According to the charity’s website, a total of 32.5949 BTC has been donated so far, which equates to more than $1.3 million at current prices.

The charity is hoping to leverage the hypothetical gains Bitcoin could make over the coming years. A June 14 blog post from U.S.-based crypto exchange Gemini — which is providing crypto custody services for the trust — asserts that donations received by the charity today could have a much larger impact if held into the future:

“This new charity model — the HODL MODL — creates a new paradigm for charitable giving. It brings the HODL ethos of Bitcoin to charitable giving, and means your bitcoin donation today could make an even bigger impact tomorrow.”

Gemini’s founders, Tyler and Cameron Winklevoss have also agreed to match the first 50 Bitcoin donated to the Bitcoin Water Trust.

“We’re thrilled to help a fellow mission-driven organization like Charity: water accept bitcoin and maximize its humanitarian efforts,” the post added.

Charity: water was founded in 2006, with the non-profi working to launch community-owned water projects that provide clean water and sanitation to developing nations. The organization first began accepting Bitcoin donations in 2014.

Related: The rise of crypto charities: Elongate and Munch raise millions for various causes.

Charity has become a popular topic within the crypto industry in recent months after Ethereum co-founder Vitalik Buterin donated billions worth of SHIB tokens that had been airdropped to his wallet by the meme-coin’s creators.

Buterin donated one-tenth of his SHIB holdings to charity after burning the remaining 90% to deter other altcoin developers from airdropping massive quantities of their token’s supply to his wallets for promotion. The India Covid Relief Fund was among the top recipients of Buterin’s dog-token stash, receiving more than $1 billion worth of SHIB.

On May 31, the Human Rights Foundation (HRF) — an organization that supports human rights activism globally — launched several Bitcoin-based grants as part of its $210,000 Bitcoin Development fund.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/1-3m-worth-of-btc-donated-to-bitcoin-hodling-charity-in-less-than-3-weeks

Continue Reading

Blockchain

$1.3M worth of BTC donated to Bitcoin-hodling charity in less than 3 weeks

The Bitcoin Water Trust has already received more than $1.3 million worth of BTC donations despite launching just three weeks ago.

Published

on

New York-based non-profit, Charity: water, has received more than $1 million in BTC donations to its Bitcoin Water Trust within three weeks of the trust’s launch.

The Bitcoin Water Trust was announced during the 2021 Bitcoin conference in Miami. The initiative attracted attention for its “HODL MODL” treasury management strategy — with the non-profit accepting donations in Bitcoin that it will not touch until 2025.

According to the charity’s website, a total of 32.5949 BTC has been donated so far, which equates to more than $1.3 million at current prices.

The charity is hoping to leverage the hypothetical gains Bitcoin could make over the coming years. A June 14 blog post from U.S.-based crypto exchange Gemini — which is providing crypto custody services for the trust — asserts that donations received by the charity today could have a much larger impact if held into the future:

“This new charity model — the HODL MODL — creates a new paradigm for charitable giving. It brings the HODL ethos of Bitcoin to charitable giving, and means your bitcoin donation today could make an even bigger impact tomorrow.”

Gemini’s founders, Tyler and Cameron Winklevoss have also agreed to match the first 50 Bitcoin donated to the Bitcoin Water Trust.

“We’re thrilled to help a fellow mission-driven organization like Charity: water accept bitcoin and maximize its humanitarian efforts,” the post added.

Charity: water was founded in 2006, with the non-profi working to launch community-owned water projects that provide clean water and sanitation to developing nations. The organization first began accepting Bitcoin donations in 2014.

Related: The rise of crypto charities: Elongate and Munch raise millions for various causes.

Charity has become a popular topic within the crypto industry in recent months after Ethereum co-founder Vitalik Buterin donated billions worth of SHIB tokens that had been airdropped to his wallet by the meme-coin’s creators.

Buterin donated one-tenth of his SHIB holdings to charity after burning the remaining 90% to deter other altcoin developers from airdropping massive quantities of their token’s supply to his wallets for promotion. The India Covid Relief Fund was among the top recipients of Buterin’s dog-token stash, receiving more than $1 billion worth of SHIB.

On May 31, the Human Rights Foundation (HRF) — an organization that supports human rights activism globally — launched several Bitcoin-based grants as part of its $210,000 Bitcoin Development fund.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/1-3m-worth-of-btc-donated-to-bitcoin-hodling-charity-in-less-than-3-weeks

Continue Reading
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