district0x Network Funding Goal Achieved

Recap of the first 24 hours of the district0x Network fundraiser

With a little more than 24 hours having passed since the start of the district0x Network fundraiser we wanted to take this opportunity to say a huge thank you to our community for all of your support so far!

When Matus and I decided to join forces, we did so with the goal of putting the powers afforded by network effects back into the hands of the network themselves. By combining a standard framework for communal markets with the governance capabilities of Aragon organizations, we believe the potential exists to build a network of marketplaces that distribute their voting powers and financial successes to their participants, empowering us all as end users.

We are extremely excited to have easily surpassed our minimum funding goal and to now be well positioned to attempt to execute on our vision. We are also very pleased with how smoothly and rationally the contribution period has gone thus far.

Security Cap in Action

When designing our fundraising structure, we aimed for a model that would maximize breadth of distribution, allowing everyone the opportunity to participate who really wanted to do so. We chose a soft cap near what we viewed as an amount likely to be near the high end of what we could raise, with a 48 hour period open afterward to afford anyone else who wanted to participate the opportunity to do so.

We received some criticism in recent weeks regarding our security cap and the fact that we chose to set it as high as $50M, which some viewed as an unnecessarily high amount. With a minimum funding target of $2M, this was in fact significantly more than would be needed to achieve our key roadmap milestones. It was also an amount we never ourselves expected to reach, which is why we called it a security cap and not a hard cap.

Hard caps are often times designed to act as magnets to attract speculators by creating opportunities for very profitable, very short-term trades. This leads to the unintended consequences of forcing out a project’s true supporters, putting the supply in the hands of speculators rather than the community. By setting a security cap well in excess of our funding goals, we avoided creating an environment where any supporter feared missing out on a chance to participate. In the event we underestimated interest, we had prepared a plan to utilize these funds which included a price floor of up to $15M.

Nearly 28 hours into the fundraiser it appears the security cap has achieved its design intent. As of publication time, we have received $6.1M in contributions from 1304 unique addresses.

Preventing Fraud with ENS

In light of Monday’s news about the compromise of the CoinDash crowdsale, we took numerous last minute precautions to ensure a secure contribution process for our supporters. By deploying our contracts nearly a full 24 hours before the start of the fundraiser and publicizing our use of the ENS name district.eth to receive contributions, we seem to have prevented funds from being sent to fraudulent addresses, receiving zero notices of funds sent to an incorrect address from a member of our community since the event started.

Still Time to Participate

If you missed the first day of the district0x Network contribution period but would still like to participate, there is plenty of time left! The fundraiser is scheduled to complete on August 1st at 3:00 PM UTC. With no bonus structure used, all contributors will receive DNT at the same rate regardless of the time of participation. Visit the official contribution page to take part.

Alternatively, district0x Network Tokens can be earned via participation in our district proposal process. For more info on how to get involved, check out our guidelines here.

Learn More

For more information about the district0x Network: