Pledgecamp is the next generation of crowdfunding. Current platforms, such as Kickstarter or Indiegogo, have given incredible opportunities to entrepreneurs and helped create a multi-billion dollar market. But the crowdfunding 1.0 model has been flawed since emerging a decade ago.
The future embodiment of this solution will be a decentralized application (dApp) called Pledgecamp. Pledgecamp will be the first platform to offer Backer Insurance—a security mechanism that holds campaign funds in a smart contract governed by backer vote. This financial incentive holds creators accountable to their promised timelines and provides a basic security mechanism for backers.
Smart contracts make complicated, self-enforcing financial arrangements such as Backer Insurance possible. Customizing contracts to each situation is essentially free, enforcement is automatic, and custodianship of funds can be guaranteed secure. Pledgecamp will have neither the responsibility nor ability to mediate user disputes and receive that liability—that power will be entirely within the hands of the users involved.
To list a campaign, a creator must place a deposit on the blockchain with a native cryptocurrency called Pledge Coin (PLG). This deposit can be earned back when creators comply with disclosures that protect backers, such as by uploading business documents, performing identity verification, or engaging backers on a live video chat. This mechanism will increase transparency for backers to guide their investment decisions.
PLG will be used to pledge campaigns and enable Backer Insurance, and it will also play a key role in cultivating the community by rewarding those who provide value to the network in the form of services. And like other cryptocurrencies, PLG will be borderless, inclusive, and provide security and transparency for transactions.
Because network participants as a whole determine which projects ultimately list and receive funding, there will be no need for a centralized intermediary and the network can scale freely without a centralized point of constraint.
Source: Read Full Article