Introducing: Initial PLinc Offering (IPO). Crowdfunding reimagined.
Why:
Previous crowdfunding models have failed to provide any type of security or protection for investors. They have often been motivated by using the fastest way to profit followed by dumping their crypto tokens on the market at the earliest opportunity - leaving the investors essentially holding worthless tokens. Crowdfunding models have failed their investors and need to be reinvented to suit investor security needs.
If we can remove the risk of ICOs, that are dependent on a centralised team of people that can often fail to deliver returns - then investors can retain their security. By utilising a trustless smart contract that is bound to deliver within its code, investors can invest with confidence that their funds are protected in a trustless manner.
IPOs introduce a radical new concept that raises funds for crowdfunding projects that effectively offer a minimum 100% cashback to the investor.
Goals:
To create a trustless crowdfunding setup in which investors are rewarded by the centralised aspect of the project or/and team and get their initial investment back, whether the project (IPO) is a success or not. Everything is handled through a smart contract.
For investors to have the option change their minds and request a first-in first-served refund if a project (IPO) is not developing in-line with their expectations.
Method:
Invested funds are funnelled through a project (IPO) oriented smart contract that is tied into and backed by a single parent contract which financially supports all of the IPO contracts.
The parent contract: PLinc Wealth Distribution is designed to handle funds from multiple sources including contributions from popular crypto dapps and games. It constantly redistributes wealth to stakeholders including where the stakeholders are smart contracts.
Once a project (IPO) becomes a stakeholder in PLinc Wealth Distribution, it will benefit its investors for the lifetime of the contract. The lifetime of the contract is linked to the life of the ethereum blockchain (intended to be endless).
If an IPO investor decides to demand a refund the IPO smart contract will burn the investors stake and trigger a function that diverts all funds coming from the parent contract to pay back the refund.
Funds coming in from investors will buy bonds from PLinc Wealth Distribution, netting a minimum 10% profit over time, depending on how the IPO has been setup by the IPO developers. This means we can give back investors their investment and use the 10% extra for the project creation.
When a new team wishes to create an IPO the contract will go through the following 2 stages:
- Paying back investors investment while taking a small amount seeding the project
- After all investments are paid back the projects pay out everyone according to the amount of stakes set. Project creators will determine up front what % off excess profits they will continue to share with the investors.
When an investor is deciding which IPO to invest in, the wealth distribution options within their IPO smart contract will be transparent, displayed on the IPO platforms website.
Key investor benefits
- Investors get back projects they want to see succeed
- Investors will continue to see additional profits after they have been reimbursed with their stake, also in a trustless manner
- Investors may receive additional centralised incentives from the project they are backing at the discretion of the project team
- Investors have control over their funds and contribution by having the option to request a first in first served refund if they are not happy with the development of the project
IPO platform
The IPO format can be used to crowdfund anything including these popular types of use cases:
- Charity
- Game development
- Medical research
- Startups
- Blockchain
- Technology
- Presales
- movies
- Food
- Solutions to refugees problems
- Universal basic income
- Other planet colonisation
- World peace
Recently launched dapps: PLinc.io and https://hub.plinc.io/#/