The Digital Assets Power Play (DPP) Crowdsale tokens

a distributed economy made right Part 1/2

Current state of Crowdsale tokens — ICOs

As we have seen a tremendous influx of the crowd token sales (ICOs) over last several months, we believe that most of these companies are bypassing opportunity given to develop a distributed economy and are just going after fund raising, without consideration of how to build a distributed self-sustaining economy based upon tokens issued and stakeholders.

Most of these companies are building a service within blockchain/krypto space without considering all stakeholders and their requirements, usually limiting token as service provision to a single stakeholder, limiting token utilisation and mis balancing supply and demand of the token itself, excluding speculative trading on the exchanges. Without balance of token supply and demand, either inflationary or deflationary pressure will decrease the value of the token or services themselves, thus greatly impacting many of these crowd sale tokens, leading them to a flop.

Additionally many of the crowd sale tokens are not clearly stating to the investors what their intrinsic value is and what exactly do tokens represent within company’s balance sheet.

In our opinion a set of guidelines should exist when one designs a crowd sale token:

· All stakeholders need to benefit by the provided services of the distributed economy.

· Self-sustaining economy. Economy should be made a self-sustaining even without any external influences, by means of token utilisation and value transfer between stakeholders. If that is not the case it is questionable if companies should issue tokens as a means of fund raising.

· Directional or bidirectional token utilisation. One needs to consider will tokens be utilised by each stakeholder. Whether they will be a buyers or sellers only and if both.

· Transparency, or lack of thereof. We propose that all future token crowd sales transparently communicate use of their proceeds and allocation of digital assets and at any given time a total digital assets and fiat currently owned by the company. Companies should publish relevant KPIs.

· Burn-out rate. We propose that companies publish on a monthly basis their burn-out rates and transparently communicate them to the community. The best way would be through a monthly P&L.

· More precise definition of what does a token represent within company’s balance sheet structure and communicating financial statements back to the community.

· Blockchain, smart contract, ethereum, DAO, … — better definition of how these technologies will be used to provide services and will be related to the token itself.

As such we will try to address these issues when designing our tokens and the distributed economy around it and communicate set out guidelines.