Comunion -The next、new start-up growth paradigm of comunion economic
Based organization (DAO) and startup mutual aid network Comunion is a decentralized (DAO) organization collaboration network that provides a new business infrastructure and value transformation mechanism for the digital age, and is committed to allowing labor value to liquidity, trade, and accumulate freely like capital.
In the current post-Internet and blockchain era, Comunion invented a new organizational form based on the core of DAO's thoughts-the network chain organization and gathered global developers to develop the next-generation organization construction and operation based on the comunization organization operation model ，The Comunion Startup platform, a commercial infrastructure, helps individuals and organizations build the next generation of economic growth engines, that is, innovative global organizations and business companies.
It is difficult for a clever woman to cook without rice. Any startup and innovation is essentially a long-term investment of resources, capital, and intelligence. In the entire Comunion network structure, how to help start-up organizations to solve early fundraising problems has always been one of the core issues, especially helping entrepreneurs with no senior resource background and full of dreams (Comunion's standard user portrait) When Comunion's overall R&D progressed to the third version, DISCO was creatively proposed, a liquidity fundraising mechanism for start-up organizations to solve the problem of resource and capital investment during the cold-start period of innovation and entrepreneurship.
1. What is the DISCO?
DISCO is a Decentralized initial Security Coin Offering, dedicated to helping comunization conduct the first Token fundraising and solving the resources needed during the cold start of the project. In theory, DISCO is composed of three parts, namely, recruiting labor The Bounty network, the ICO network that raises funds, and the BBS community that raises attention, the DISCO here alone refers to the core part of the fund-raising fund’s ICO mechanism.
Of a start-up organization, The start-up organization here is only an early-stage organization created for the first time to carry out a certain innovation and entrepreneurship
Of start-up organizations In the general sense, start-up organizations usually encounter very real problems in the fundraising process, that is, the founding team may not have the endorsement of historical success, there is no strong fundraising network, and no strong resources and contacts to support it. In the early seed round, the product may be in the PPT or Demo stage, and the business model has not been verified. These objective problems will stifle some great products in the infancy, and even more seriously, stifle the problems of innovation and entrepreneurship. In the current technological cold war era, stifling innovation is undoubtedly surrendered without a fight.
Fund-raising characteristics of
start-up organizations have two points, that is, the amount of fundraising is low and the risk is high. These two characteristics determine that only a very small number of start-up projects can receive early financing from investment institutions, often with Strong resource background and continuous successful entrepreneurial experience.
2. The advantages and disadvantages of traditional fundraising mechanisms
There are only two fundraising paths for traditional entrepreneurship or any business model:
Regarding private equity
There are 20,000 private equity institutions in China, and no more than 2,000 are effectively used to truly support risky VC innovation and venture capital, and no more than 200 active heads. All entrepreneurial organizations need to be in the initial stage of private equity such as seed The early stages such as rounds, angel rounds, and A rounds all need to go through a few of the two hundred or dozens of institutions for rigorous interviews.
IPO’s high requirements for-profit and the cost and energy loss in the entire IPO process are very high and profit-oriented. It is almost difficult for most entrepreneurs’ projects to reach this stage without early private equity support. I believe there is no need to go into the difficulty of IPO on a global scale.
3. ICO mechanism analysis
I believe everyone is clear about the pros and cons of ICO. The advantage is that it can efficiently pool large amounts of funds from ordinary investors in a short period to meet the cash flow needed for the company’s development. The disadvantage is that it gets a lot of financial support in the early stages of the project. The founding team stopped development due to a lack of motivation in the later period and divided the investment amount. At the same time, due to the imperfect mechanism and legal system, it could not be held accountable, and thus it was very unfriendly to investors. At the same time, in the timely development of the project, there are also some problems such as fund use problems, governance problems, later kinetic energy problems, differences in the interests of investors and project owners, and sustainable development. It can be described as frequent problems.
4. DISCO's operating mechanism
DISCO's full name isDecentralized initial Security Coin Offering. It is committed to helping start-ups and organizations realize a distributed and decentralized fundraising form, realizing an efficient, scalable, and sustainable fundraising method, and improving start-ups' Enterprise survival rate. Based on the decentralized governance structure brought by Comunion, it helps investors to participate in the governance structure of the project, thereby protecting the interests of investors themselves.
As shown in the figure above, the overall DISCO process is divided into two parts:
- A smart contract for fundraising and fund distribution
- A set of decentralized liquidity trading mechanism
The specific execution process is:
The fundraising team sets the fundraising quota, fundraising cycle, and quota allocation ratio. The allocation here is only the proportion of user project development and the proportion used to support liquidity. After the fundraising cycle ends, the proportion used for project development is directly Transfer funds to the wallet of the project party, and the part used for liquidity enters the liquidity exchange, and the user liquidity is opened.
The investor transfers the investment funds to the fundraising contract. When the cumulative fundraising quota meets the minimum fundraising quota of the project party, the fundraising is valid, otherwise when the deadline comes, if the total fundraising quota does not meet the project If the minimum fundraising amount set by the party, the fundraising fails, and the subsequent refund operation will be carried out
When the fund-raising amount meets the minimum fund-raising requirements, at the end of the fund-raising, the final token pricing can be determined according to the total number of fund-raising tokens entered by the user, combined with the ICO premium allocation ratio set by the fundraising team, The final account splitting operation is specifically represented by splitting the fundraising amount according to the two allocation ratios set by the fundraiser
Finally, the investor receives the token with a premium percentage, the project party obtains the token used for project development, and the ordinary investor obtains liquidity
Analysis of the advantages and disadvantages of DISCO
DISCO makes full use of the elements of the game in it. Compared with the traditional fundraising mechanism, it has a substantial improvement.
The specific performance is as follows:
Combine team governance and operation with fundraising, and the information is more transparent. Investors can truly see the operation of the project and use their strength to judge the quality of the project
Investors can guarantee the safety of funds at any time, Return your investment amount because part of all fundraising funds will go to the liquid exchange. If an investor wants to withdraw his investment amount, he can completely trade back his investment funds from the exchange
It is very suitable for small and large numbers of decentralized investors. It can not only reduce the risk of each investor but also allow small investors to obtain capital gains. At the same time, for the project party, early project support The more investors there are, the more beneficial it will be for the later development of the project party.
Price discovery, through the free pricing of the primary market, serves the purpose of price discovery
How to balance the rights and obligations of investors and fundraising teams
For different fundraising models in the blockchain field, such as ICO, DISCO, IEO, etc., different fundraising methods have their advantages and disadvantages, but returning to the original intention of a real project party to raise funds, the core is all for the project development, and project development, or the development of anything, is essentially the minority driving the majority.
Here we need to solve two problems:
1. Ensuring the efficient development of the enterprise.
In response to this, we did not adopt a model similar to DISCO, using the community to determine the funding allocation of the project party. The reason is that this mechanism does not conform to the actual project operation in the real world. Without the right to control the use of their funds, there is no motivation to advance the project in this mode. It is not in line with human nature and does not conform to the operation mode of the project in the real world. It is the original intention of investors to operate the project efficiently and achieve sound development. , Is the expectation of the project party. Therefore, to ensure the efficient development of the project party, DISCO makes part of the funds directly belong to the project party for daily development and operation.
The proportion of this part is set before the fundraising. If the investor agrees with the distribution ratio, they can invest, if they do not agree with the distribution ratio, they can not invest. Here is a comprehensive game between the project party and the investor.
2. To ensure the relative safety of investors’ investment funds.
Traditional fund-raising methods cannot guarantee the safety of the project party’s funds. All funds belong to the project party. Therefore, there are a large number of project parties who are not dead and donate money. To protect the interests of investors, through DISCO, the project party has set a certain percentage of liquidity distribution. If an investor wants to withdraw his investment, he can redeem it through the liquidity exchange. Ensure the safety of a certain percentage of investment funds.
At the same time, if you want to continue to invest more, you can also make additional investments in the liquidity exchange to obtain more tokens. This model also takes into account third-party liquidity providers. If you get a certain token through bounty early, but you don’t want to continue to invest more, and you do not want to sell your tokens, you can provide liquidity support and make profits.
3. Supervision mechanisms based on gaming and marketization are more efficient
DISCO does not deeply bind the operation mechanism of DAO to ICO. The core is to fully use the game in the interaction between investors and project parties and find a way for both parties to find a way between the advantages of decentralization and centralized and efficient project operation. The accepted balance can be broken in different periods or at different stages, and continue to find a new balance through the game. Once the DAO is deeply bound with the project party, based on human nature or real-world project operation rules, the project party will enter an atmosphere of low efficiency, trustlessness, and unprofessional decision-making, and it is difficult to come out efficiently and with high quality. It will enter a state of the negative-sum game, I believe this is not what investors and entrepreneurs want, let alone what the market wants. Any innovation has a cost, and any investment is also risky. However, DAITO can reduce the risk and change the risk. It has found a new game balance between decentralization and centralization, allowing the project party Under the condition of efficient operation, the supervision of the project party can be obtained, and the fund security of investors can also be guaranteed to a certain extent.
4. The scope of DISCO's problem solving
DISCO is completely oriented to early-stage entrepreneurial teams. It is used to solve the initial fundraising problem. It is the starting point of the project from scratch. It helps the team build from scratch and helps early investors manage risks and gain returns under a certain mechanism. Is a brand-new project incubation platform used to support market innovation, so no matter the depth of liquidity or the exchange between projects, the scope of problem-solving is limited to helping a team from 0 to 1.