- Block.One’s yearlong initial coin offering (ICO) for the EOS blockchain raised a record-breaking $4.1 billion in 2018.
- LiquidApps created a second-layer protocol for EOS to offload computing expenses for dapps, which became very expensive just a few months after EOS launched.
- In a similarly yearlong ICO, LiquidApps is currently selling DAPP tokens to be used on its new protocol.
- However, six months in, LiquidApps had sold only $2.8 million worth of DAPP. After the same amount of time for its sale, Block.One had sold $700 million worth of EOS.
New cryptocurrencies aren’t raising money like they once did, even during marathon sales.
In the first half of 2018, the average initial coin offering (ICO) raised $25.5 million, based on data reported by PwC. The biggest ICO of them all, the yearlong EOS offering, closed during that era and raised a whopping $4.1 billion.
But a second ICO that aimed to make EOS more usable and also opted for a yearlong approach hasn’t drawn as much investor interest.
LiquidApps is building a second-layer solution for EOS that runs on the company’s DAPP token, which has been sold in daily auctions since February 2019. At the end of its 233rd auction cycle on Aug. 19, the DAPP sale had raised just $2.8 million worth of cryptocurrency.
A source with knowledge of the LiquidApps fundraise told CoinDesk:
“They’ve done an interesting job and [have been] innovative in learning from the Block.One sale and mechanics in crafting how a fundraise for a project should be done. Where they’ve struggled is, not just different market conditions, but finding the right investors and participants for their sale that fully understand the value proposition for the project.”
LiquidApps declined to provide comment on the results of its token sale so far, despite multiple attempts by CoinDesk for comment.
For 333 days and 444 sale cycles, 500 million of the 1 billion pre-mined DAPP tokens will be gradually sold off – that’s 1.12 million tokens every 18 hours. CoinDesk’s analysis is based on the reported price of these tokens in each sale, as shown on the LiquidApps auction site.
The LiquidApps solution is meant to take pressure off the EOS blockchain’s RAM system, which has gotten bogged down as computing resources have proven to be the scarce asset on the fourth-largest blockchain by market cap.
Still, the effort seems to be garnering comparably little fanfare. For comparison, six months into the EOS sale, the startup behind it, Block.One, had raised $700 million, according to a December 2017 report by the Wall Street Journal.
This is a different era in crypto, however, and LiquidApps has put out a much more real product than vastly larger ICOs that ended long ago.
Fred Kreuger, creator of the Lynx Wallet, which is built to work well with EOS, told CoinDesk that he was not surprised by more modest returns on the LiquidApps ICO.
“Most end users and token buyers understand one thing – native tokens for blockchains.”
The company made a conscious decision at the outset not to set a goal for its fundraiser.
“Our goal with the Token Generation is to bring as many stakeholders into the ecosystem to best establish it for success,” LiquidApps CEO Beni Hakak told CoinDesk in a February email, shortly before the sale opened. “As true believers in the free market, we don’t involve ourselves with price speculations – there is no technical possibility to combine an auction, like we’re doing, with a capped amount.”
There may be less pressure on LiquidApps to raise a substantial amount due to its close relationship to another well funded ICO, Bancor.
Hakak was the director of operations at Bancor until January of this year, according to his LinkedIn page, which also lists him as the CEO of LiquidEOS, an EOS block producer that CoinDesk previously reported as a project of Bancor itself.
In February, the LiquidApps white paper listed eight people on its founding team, including all three co-authors of the original Bancor white paper: siblings Guy and Galia Benartzi and Eyal Hertzog. Still, according to a Bancor spokesperson, LiquidApps is a distinct and separate company, though one made up of Bancor alums.
That relationship yielded a great deal of skepticism from the broader crypto community. At the outset of the LiquidApps sale, Cornell professor Emin Gün Sirer saw the whole effort as ill-advised.
“This is an idea that, in the old days, would attract no more than $225K in seed funding from angels and a few VCs, and those VCs would be considered mavericks for taking this on,” he told CoinDesk in an email before the sale opened, adding:
“If $4 billion was not enough to yield an EOS network that is functioning smoothly, the thing to do is not to seek additional funds for more work in the same vein, but to question what went wrong with the original design of the RAM market in EOS.”
Why buy DAPP?
RAM is the ready, easy-to-access memory that applications need to work through a given function. Early on, speculators bought up the RAM supply in anticipation that increased popularity of EOS would make it valuable. In fact, it became so pricy that acquiring RAM resources on EOS became prohibitive.
The first product from LiquidApps was vRAM, a way for EOS dapps to offload most of their RAM needs to a second, less expensive layer. To its credit, vRAM was live at the start of the token sale and has been running ever since.
Investing With a Difference (IWAD) runs a node on the LiquidApps network, and one of the companies it worked with to use its services found dramatic savings. Moonlighting, a freelance job site that runs on EOS, would pay $2,000 per day to run all of its transactions on EOS, according to Raman Bindlish of IWAD. Their costs after moving most transactions onto IWAD’s deployment of LiquidApps dropped to about $10 per day.
“We are doing 10,000–20,000 transactions per day, and CPU/NET cost on EOS blockchain is almost minimal,” Bindlish told CoinDesk. “So, using LiquidApps framework for RAM, we brought down the cost of each transaction to less than $0.0005 on average.”
Since releasing vRAM, LiquidApps has put out many more useful tools for developers, such as a way to make accounts for free (an EOS account costs a bit of EOS), an oracle system and a time tool, among other things. LiquidApps published a detailed account of progress so far early this year. To access its different services, users pay in DAPP tokens.
Despite doubts about the necessity of its product, launching the solution has led to a network of service providers running its vRAM system and other products. This has created a new income stream for technically proficient teams no longer able to earn enough contributing to consensus on EOS, either as a block producer or standby block producer.
LiquidApps began in an era of expensive RAM. In September of 2018, it was running at roughly $0.80 per kilobyte. For context, at that time, it would cost a developer a few dollars in RAM to add one new user.
Since then, the price of RAM has dropped considerably. As of this writing, a kilobyte of RAM cost about $0.34 in EOS, according to EOS New York.
And EOS, for its part, had a strong first quarter in terms of transaction volume, largely driven by gambling dapps.
Hakak told CoinDesk in February:
“We believe The DAPP Network should be a separate, complementary ecosystem (economy) to EOS. While EOS Mainnet is where the consensus is established, the DAPP Network is a secondary trustless layer; and having a unique token, the DAPP token, will allow this ecosystem to flourish.”
Spanish Firm Aragon to Open Registration Doors for Aspiring Judges to Settle DAO Disputes
Spain-based reputed startup platform, Aragon has broadcasted the news that it will launch a form for the registration of interested individuals who are aspiring to sign up as judges for the platform. These judges will play a pivotal role in settlement of disputes and the enforcement of contracts between the entities working on the network.
Aragon was formulated with an objective to facilitate the creation and management of a decentralized autonomous organization or DAO, as it is popularly referred to as, while utilizing the tools offered by Ethereum. The piece of news was delivered by Aragon’s developer and CEO, Luis Cuende, during his interaction with James Molins, a correspondent of Breaking News, in the Congress Paralelní of Hackers (HCPP 2019) that was organized in Prague, Czech Republic.
It is a justice system decentralized to resolve disputes in a way that you can have your estate in Aragon, decentralized in the blockchain, and then also have this system with which you can resolve disputes of any kind in your estate. For example, the attacks that arise on the part of the DAO that want to take the treasury out of the funds of the DAO and give it to another DAO, so that people who do not have as many token do not have the right to vote and lose the funds. This type of problem, very common in a scenario where you either purchase tokens and you can be part of a DAO, we solve this system of dispute resolution,
said Luis Cuende.
Where on the one hand, Aragon allows a person to run and manage a decentralized organization by providing aid in fields like accounting, financing, governance, etc., it is also now planning to create a regulatory court that will render to compliance of contracts along with a settlement of conflicts for the DAO.
Luis Cuende further shared his views saying that
And the magic of this jurisdiction decentralized is that there is no violence, this court can not get anyone in jail. There are No prisons. What we can do with incentives crypto-financial is to align so that all the people, in general, have reasons for not doing harm to other people, or, in general, not to damage relationships or existing contracts. But in the end, there is no violence, which it seems to me that is still very much the concept of crypto.
The spearhead confirmed that by December next year, a registration form will be made available for the people who wish to apply for the judges’ designation. By January 2021, the solution will start resolving real cases of disputes. The judges shall be selected by draw, and the parties in dispute will be allowed to select the number of judges who wish to participate in the case proceedings.
The judges who aspire to become a part of a particular case will have to make a deposit in ANT token in lieu of the right to perform the service. Post the case proceedings; the judge will get his/her fees.
Even if you have a dispute resolution system, you don’t want to have to use it; then our model is also fixed much of it, in which the judges have to be paid but not do anything. You need to be there not only for the disputes, but they are there forever, that is what also makes the traditional system of justice isn’t it? Whether or not you cases to judges are paid, because if not they would go,
The court is put into action when an interested party counters that a submitted proposal has violated the agreement terms. The disagreeing party needs to deposit an equal amount of collateral as well as the initial fees of dispute decided by the Court of Aragon.
MakerDao announces launch of Multi-Collateral Dai; introduces new logo
Maker Foundation’s Chief Executive Officer [CEO], Rune Christensen, spoke at DevCon 5 held in Osaka, Japan, where he revealed the launch of Multi-Collateral Dai [MCD]. Christensen went on to announce that the launch will take place on 18 November.
MCD will also be introducing several other features to the Maker Protocol like Dai Savings Rate [DSR] and additional CDP collateral types. The DSR will differentiate Dai from other stablecoins and will enable users to earn on-held Dai, while MCD will offer an option to earn savings by holding Dai.
The launch of MCD is being held as a milestone for the MakerDAO project, in light of the impact it may have on the future of Decentralized Finance. Apart from earning Dai with DSR, it would also lead the way for innovative Maker protocol integration on the backend of DeFi dapps. The blog read,
“Multi-Collateral Dai represents a tool in the DeFi toolbox that can help harness the power of money to solve global problems. Because of DeFi’s reliance on transparent, honest collaboration, even the most extreme global financial inequality might one day become a thing of the past.”
Defi may help the unbanked and the under-banked to build products and gain access to financial services. MKR holders will be voting on the terms of the DSR and the risk parameters for BAT and ETH, the first two tokens under evaluation by the interim risk team.
Christensen also took the opportunity to introduce the community with the new look of the Dai logo. Head of Design, Henry Doe, commented on the same, stating that the design included intensive research and community participation. He added,
“In doing so, we saw a great opportunity to design something that would help move DeFi into the mainstream and allow Dai to be globally recognized as a currency.”
The new design pushes the accessibility of Dai to people outside the cryptoverse to communicate the role MCD will be playing in DeFi, while promoting the stablecoin’s potential, explained Coulter Mulligan, Head of Marketing.
TNC Group CEO Bruce Jeong Meets Facebook Libra’s Susan Zook
TNC Group CEO Bruce Jeong recently met with Susan Zook, one of Facebook Libra’s lobbyists. Jeong took the opportunity to discuss TNC Group’s plans and propositions to the blockchain and cryptocurrency space. Zook has shown a positive impression of TNC as a blockchain-focused company, discussing how Facebook Libra can collaborate with TNC Group.
According to Jeong, Zook responded positively to the presentation of TNC’s projects and services. He also added that among all of TNC’s project, Zook was mainly interested in the establishment of Blockchain Academy. An investment in blockchain education that aims to drive economic progress in developing countries through the construction of Smart Crypto Cities.
Zook was a former aide to the chairman of the Senate Banking Committee, which executed the hearing for Facebook’s cryptocurrency project Libra in Washington last July. She owns her own consulting firm Mason Street Consulting. Zook had confirmed in an email that she was hired by Zuckerburg to focus on lobbying Senate Republicans. In its aggressive pursuit to launch Libra, Facebook CEO Mark Zuckerberg has met with various government officials and gathered a team to help him start Libra.
Malloy McDanniel of West Front Strategies was also present in the meeting. He is also a principal for Blank Rome, an AM Law 100 firm providing legal services. During the discussion, Zook has recognized some gaps in crypto regulations, which business strategist McDanniel suggests TNC consultancy services can adequately fill.
Bruce Jeong said,
“We have discussed blockchain technology as an emerging industry and the challenging situation for crypto regulations in the USA. As a blockchain consultancy company, it’s going to be a pleasure for TNC to render our services for Susan and Libra.”
Jeong also revealed that meeting Zook opened new horizons and possibilities for TNC. He is optimistic about sharing that this meeting is exactly what TNC needs and is well-aligned to the company’s goals. As part of their company road map, TNC aims to start business operations in the country well-aligned with its plan to relocate the company headquarters in New York, USA.
TNC Group has a long-term goal of bringing together the best projects with innovative blockchains and create a bigger ecosystem for the blockchain and crypto industry. TNC believes that this will enable more people to be aware and choose to use cryptocurrencies.
At the end of the meeting with Zook, Jeong wrapped things up by expressing his interest to meet Facebook’s Chairman and CEO Mark Zuckerberg. Jeong mentioned,
“I told Susan that I really want to meet Mark Zuckerberg. I believe that it is very beneficial for both the TNC Group and Facebook Libra to have friendly relations.”
Jeong also said that this can pave the way for possible future business collaborations between Facebook and TNC.