Inspiration
I have a friend (lets just call him Bruce) that is the founder of a crypto project that is gaining in traction, but like most founders if he has learnt a lot of things the hard way. I love his project, I bought tokens and use his platform regularly, there is no doubt in my mind if he can get through his cashflow shortage his company with be a massive success. Most people that start a crypto project are doing it for the first time and are sure to make some major stuff ups. Bruce admitted to me one of the biggest mistakes he made was to launch the token too early. By doing this he didn't raise enough funds for the project and now there is a small community of people that have the token and the price fluctuates on a daily basis when some of the larger token owners buy & sell their tokens. Every time someone sells a lot of token there is a sharp dip in the price. Problem is Bruce is the largest share holder of the tokens and he is consistently expanding his team and forced to sell his tokens to the market at the market rate when he needs cash. Hiring that 1 kick ass developer means he needs to get $200k out of the market and if he did that in 1 hit that would make the charts drop sharply and if he sells slowly bit by bit over the weeks isn't much better because it could just cause a downward trend. On top of the when people see that as a project treasury or one of the founders wallets is selling it can set in panic because they think the founders are cashing out or if it is one big hit is it a rug pull?
What it does
The solution would be a DAO P2P market place that allows the sale of a token with a vesting schedule (lockup schedule). This would allows someone like Bruce to sell a large stake of his tokens without fluctuating or affecting the market. Bruce could set a fixed price or a percentage discount based on the market rate.
Bruce can choose from the pre determined smart contracts as to what terms he wasn't to do.
Bruce can decide to put it publicly on the platform or have a private link that is great for private investors, angel investors, VC firms ect.
If Bruce puts it up publicly he can put a reason as to why they are selling and what they intend to use the funds for eg "Hiring the best full stack engineer in town".
The reason why I called it "Burn To Fiat" is because a lot of projects have too many tokens and really need to reduce their supply. If the project burns it's own tokens that is normally great in the long run, the community love it but it is of no real benefit to the project right there and then because they are literally setting fire to something that if they sold could make them money. On the platform it would be encouraged to burn some tokens when a P2P transaction is done, this shows good faith from the project as well as receiving a liquidity injection to the seller.
How we built it
Not built yet, still just an idea for the ideathon at this point
Challenges we ran into
Trying to more usefull feedback on the project as I wanted to expand the feature set of the P2P DAO. I'm sure once it launches the DAO community would put forward more suggestions for additional features
Accomplishments that we're proud of
Putting a 3rd option into the Ideathon
What we learned
Kids toys are a great way to explain things
What's next for Burn To Fiat
Assemble a team and build it!
Log in or sign up for Devpost to join the conversation.