How to balance the relationship between fair start-up and long-term stable operation of the project?
We all know that many blockchain projects will raise funds before development. For example, Filecoin is divided into public offerings and private offerings during ICO. The tokens issued by these two types are mostly obtained by investment institutions and asset leaders, and have nothing to do with ordinary miners and users. But it is with the blessing of these investors that Filecoin can be developed and operated stably for three years, until it goes online on October 15.
Advantages must have disadvantages. Blockchain is decentralized, and it should be shared by the community to jointly control and plan its development direction. If you rely on the traditional investment model, it will still be centralized in another sense-the more tokens controlled by the investor, the stronger its control over the project.
Therefore, there is a fair launch, which means that when the project issues tokens, everyone has a fair chance to participate. But according to Nic Carter, the founder of cryptocurrency data provider Coin Metrics, the true realization of fair start is the PoW mechanism, or more accurately, Bitcoin-proof of work makes BTC everyone from the beginning Participable blockchain, and with the disappearance of Satoshi Nakamoto, the control of BTC is returned to the hands of the community.
The security startup we are talking about now comes with the prosperity of DeFi projects this year, and is more biased towards the rule of “mostly obtaining tokens by providing liquidity contributions.” Simply put, it is a DeFi project that does not require a large amount of upfront investment — people pledge tokens, promote circulation, and reap profits from it — each participant is an investor.
However, in this way, a new problem will arise. The complete decentralization results in no “leader” who can support the operation of the project, and it will be difficult to operate the project for a long time. Regardless of the fact that BTC is now so strong and highly respected, it can be regarded as “half alive” in the first few years of its birth. The entire community has clenched its teeth on faith. However, the current blockchain has long lost its initial “simpleness”.
Therefore, how to balance “fair start” and project operation has become a compulsory course for current projects.
CEP, the Encrypted Investment Protocol believes that “fair start” is an innovation in the business model, which means that all users are also investors in the project, and everyone uses decentralized democratic governance and a fair start token distribution mechanism. This equates rights and responsibilities, thus solving the dilemma of the inconsistency of power and responsibility in the previous governance model and business model. The completely transparent token distribution method and the basic logic of rule by code also fundamentally ensure fairness. And justice.
Therefore, in addition to basic token distribution and liquidity mining, CEP will establish a new set of codes of conduct-the founders and the community work together more smoothly. These will include but are not limited to:
• Establish an early ownership distribution strategy that founders and investors can trust
• Quickly establish an incentive mechanism for future work
• Rank smart contract (sometimes economical) review
• Put success into action
