Staking or Voting Patronage as Crypto Seed Funding

in blockchain •  5 years ago  (edited)

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As a Staking-as-a-service provider trying to win over support in various Crypto communities for our Validators, Block producers and Transcoders, it struck me that the differentiation will not be price, quality or high availability of the services performing the service (these will be the bare minimum for entry) for the respective Blockchains, but rather how the Validator contributes to improve the Technology, Infrastructure, Onboarding or Educational content of the Blockchain in question.

Right at the top of the totem pole are the founders or core team of a coin running their own validators, followed by Technology savvy operators who have the chops to BUIDL for the system. I’d like to think of YieldWallet.io as belonging to that second category with ambitious plans laid out for every coin we support, whether it be block explorers, rewards calculators or even full fledged Exchanges and DEXes.

While the funds coming in from these revenues won’t be anywhere near enough to support full-time teams of engineers working on a particular blockchain (with some notable exceptions), one can think of them as

a. Seed funding to make small technological inroads or proof-of-concept type contributions to a Cryptocurrency or Token with a promise of something much larger to come on subsequent funding rounds,

b. Social proof having laid out our plans for a coin and won over the support of a large part of the community to not only sustain Proof-of-stake operations but fund larger efforts at higher (or lower in the case of Protocol enhancements) levels of the Cryptocurrency stack.

Those who proceed to Initial exchange offerings armed with A and B should have greater success in raising the larger funds needed to make a ‘dent in the universe’ as Steve Jobs famously put it. This may start to become a prerequisite in the future as fund raising requirements continue to tighten and become harder following the merrier fund raising days of 2017.

The best part? No SEC, FINRA regulation, FinCen and other alphabet soup agencies! Let's make 'reg' tech obsolete!

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Gautam Sampathkumar

CEO / Founder, Indra Crypto Capital

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