Proposal “DappDapp-Dash-Messaging-Eco-System“ (Closed)Back

Title:DappDapp- Dash Eco System (EQUITY PURCHASE)
Owner:WillDD
Monthly amount: 920 DASH (48741 USD)
Completed payments: no payments occurred yet (3 month remaining)
Payment start/end: 2017-11-18 / 2018-02-15 (added on 2017-11-22)
Final voting deadline: in passed
Votes: 106 Yes / 435 No / 95 Abstain

Proposal description

Thank you all for your time,
As per comments below, please take the time to read this before making a decision:
*****************************************************************************
 
We thank all you guys for the positive feedback and wish to make the following adjustments:
 
As per henrygeorgist suggestion in comments here is thelink:
 
Whitepaper: Click Here
 
We have discussed this as a team and we really wish to accommodate everyone.
 
From the money we seek, £156k (+-15%) is for marketing,basically giving new users free Dash on completing a small Dash Campaign.
 
This will be something like a Dash introductory video followed by a little questionnaire (obviously very basic) to make sure users did pay attention.
 
Video showing a demo of how this could look: Click here
 
This leaves £900k, which we would like to adjust the valuation as follows:
 
Split into the 3 payments as it is currently. (kept in escrow)
 
In exchange for this we half the valuation to £7.5m. (Equity12%)
 
But give us the opportunity to prove ourselves and earn it back.
So if we meet the following Targets:
 
40 000     Total New Users - 30 April
55 000     Total New Users - 31 May
75 000     Total New Users - 30 June
100 000   Total New Users - 31 July
 
We earn back the dilution.
All 4 Targets need to be met for this option to be fulfilled.

*****************************************************************************

Original Proposal:

DappDapp Demo:

[video]FxR6RNH_y8s[/video]

Meet the DappDapp Team:

[video]7BG8K6_gxQ8[/video]


DappDapp    

Transactional Ecosystem through Chat’
First Equity offer for Dash
Equity Proposal : ĐASH+ DappDapp
Current Valuation: £15m (please see above)
Investment ask: 2760 Dash (escrow)

Key Attachments:    1. Engagement with customer - 10 million user database
              2. WhitePaper/Business Plan

Prepared by: Allen Schneeberger and William Honiball, Co-Founders
 

To be read along with following Resource links:

1. This Proposal in PDF with Graphics: https://www.dropbox.com/s/6d616jdkuyub94i/DappDapp-ProposalDash.17.11.21..pdf?dl=0

2. WhitePaper: [color=#0000ff]https://www.dropbox.com/s/je7rk4pt3gvwtus/dappdapp_white%20paper_A4%20portrait_24PP.pdf?dl=0[/color]

3. Video-Meet the Team: https://www.dropbox.com/s/s3ot46l5xwt69qs/DappDapp%20Team%20-%20HD%20720p.mov?dl=0

4. Video-DappDapp Dash Demo: https://www.dropbox.com/s/iyr4hjm63wh3hql/DappDapp%20Demo%20-%20HD%20720p.mov?dl=0
 
5. Customer Use Case: https://www.dropbox.com/s/vzh7ip7i3ih6jwq/DappDapp-Texuna.17.09.15..pdf?dl=0

6. Download DappDapp

iOS  - https://itunes.apple.com/us/app/dappdapp/id1113420120?mt=8
Android -
https://play.google.com/store/apps/details?id=dappdapp.com.messenger



DappDapp - Brief Overview

 
 
In a nut shell, DappDapp was founded on the premise that Social Media is fundamentally flawed due to
user privacy violations, advertising fatigue/distrust and the lack of economic
value and governance for all participants.
 
DappDapp has created a micro digital ecosystem, connecting corporate and consumers by
focusing on activity attribution and engagement via chat. The technology can be leveraged to add meaningful valueto text and media interactions where goods, services and knowledge can now be transacted and monetized seamlessly into chat, rewarding the contributor and consumer (end user) as well as the corporates and create experiential micro currency through DappDapp’s ecosystem and across a cryptocurrency platform such as ĐASH.
 
It’s development and design have been centred on ensuring that all of the great features it provides can be monetized. Bridging the social media flaw by forging communication and commerce together to interlink corporates, consumers, contributors, celebrities and charities. This creates and facilitates a new and sustainable micro digital economy, known as the 7C’s, within a safe and secure environment consisting of a hybrid of centralized and decentralized Block Chain technologies (see meet the team video).
 
 
 
 
 
The Situation
 
As of today, there are limited opportunities and places that millions of users can participate in digital currencies. One of the most compelling features of DappDapp’s micro digital currency facilities, is that users are not necessarily required to purchase them. Instead, millions of mainstreamers are able to earn micro crypto currency by performing valuable actions and tasks within the app which are both cost effective and rewarding for contributors, corporates, celebrities, charities driving their campaigns especially through our ‘public chats’ feature where you can have millions of followers, and most of all for the consumers (end user) themselves who can also protect their digital management rights (DMR) should they wish to capitalize on the premium content opportunity and functionality.
 
As DappDapp expands its footprint and ecosystem across borders to include a cryptocurrency that holds real value both inside and outside of the chat application, the economic viability for all the 7C’s are vastly enhanced making it extremely attractive into real-world value for all participants simply through a smart phone.
 
Limitations for most Block Chain technologies are:
1)Throughput
2)Scalability
3)Costs
 
For Example: At a level of 1.5 Million users engaging the product to earn micro digital currency on a monthly basis, the expectation would be over 100 Million total transactions. This expected daily transaction rates could surpass most of the largest cryptocurrency throughput capabilities and present a risk of congesting their networks. It is issues like this that suggest a purely on-chain architecture may not be optimal at the outset.
 
Furthermore, complexity and fees to be paid for every transaction create  adoption barriers for the average user.
 

The Solution
 
The process of obtaining cryptocurrency is daunting and unreachable for the average user and hence the integration of ĐASH and its digital micro currency area natural fit for both DappDapp and ĐASH as an off-chain and on-chain transaction service for scalable interactions which will help ease any on boarding barriers, fears and frustrations.
 
As stated in our whitepaper (see attached) we originally designed our micro currency feature known as ddapp, however after discussing with ĐASH’s CEO, Ryan Taylor the merits of using another layer or complex processes for the consumer(end user) to get his/her head around the different tiers. Ryan shared his valuable payments experience and expertise stating that it will potentially confuse the customer(end user) and create other unnecessary adoption barriers and therefore suggested we consider using ĐASH’s micro currency known as Dot where 1,000,000 Dot = 1 ĐASH. This is invaluable to the process as advertisers and incentivized activity campaign drivers will now purchase Dappverts (adverts) with ĐASH, Charities and Celebrities will now earn ĐASH and the Contributors and Consumers will now be paid in micro ĐASHfor performing certain activities/tasks including cross border premium content purchases and the like.

We also have examples of insurers who are keen to underwrite certain risks associated with micro payments and an international educational institution who are keen to communicate with their 10Million registered students via our public chat facility and charge for various online content, modules and activities in micro ĐASH and ĐASH and also facilitate, opt-in, non-intrusive Dappvert campaigns to their audience and share the monetized revenue.
 
PS. We have added an addendum to the white paper stating that where you see ddapp it should now read as micro ĐASH.  The user will have a toggle for ĐASH or micro ĐASH.
 
Ryan Taylor gave us this link as a live example of a complex process that is killing an otherwise great product, https://www.pymnts.com/news/ecommerce/2017/ea-games-star-wars-video-game-payments-battle/
 
DappDapp will develop, host,facilitate and integrate a ledger with an API available to all digital service partners. This will (1) improve user experience, (2) lower or avoid network fees on small transactions when transacting between users, and (3) reduce stress on the public network due to large transaction volumes.
 
DappDapp believes that digital currencies is the next phase in the evolution of money, and we see ĐASH as the perfect fit for the crypto currency payment option to complete the DappDapp micro payment platform. DappDapp strongly believes that it will be a win-win for both ĐASH and DappDapp as it makes no sense for us to do an ICO of our own and add yet another crypto currency to the many, instead an investment into DappDapp can grow one solid, valuable crypto currency exponentially.Adding ĐASH  to our digital micro payment platform will significantly increase the ease and subsequently the rate of adoption of ĐASH as a global digital cash currency.
 
Project Summary
 
ĐASH crypto currency platform for DappDapp Micro Currency Users
 
DappDapp has created a simple micro digital currency platform via chat.
We see the potential for digital currency to revolutionize global financial services, making commerce, easier, faster, more secure and less expensive.
 
Each DappDapp user will have an integrated wallet to facilitate the micro Dash transactions of ĐASH and together potentially become the world’s most popular crypto currency wallet for low value balances.
 
There are large and valuable markets (see white paper for uses cases) we can serve together that will encourage rapid adoption by making it extremely simple for users to transact in the ĐASH digital currency. ĐASH’s brand and DappDapp’s brand are both simplicity and ease-of-use. We share a similar strategy for our consumer and corporate
product.
 
This project will add ĐASH as the primary crypto payment option for our customers in an extremely simple way, and will help users adopt to ĐASH payments with much less complexity. As more users enter the micro digital currency world, more transactions will be a key part of  ĐASH’sgrowth and exposure. We will help expose ĐASHin making it more accessible for commerce, and believe ĐASH will become the #1digital currency in the world. We want to lead the micro commerce revolution with our digital payment platform via chat, and this is why we strongly believe
that we are a natural partner for ĐASH.All marketing/advertising campaigns will be transacted in ĐASH.
 
Technical Overview
(Please see page 15 of the white paper)
 
Current Progress
 
For the past two years we have designed and developed the unique functionalities of our ecosystem via chat with a very small talented team and we are now ready to take it to market. In order to facilitate this we need additional funding to scale up whether it be additional staff or software/hardware and user acquisition processes.

We’ve listened to countless hours of feedback and participated in many user-centred design sessions to understand the exact needs of enterprise executives, financial teams and consumer experiences together with future trends.

To realise our vision, we need to immediately expand our team by adding seven more staff members:
 
-      One Android platform developer
-      One iOS platform developer
-      Two server/block chain engineers
-      One architecture, integration developer
-      One program/product manager
-      One Marketing Executive
 
ĐASH Funding/Investment Details and Proposal Terms
 
We have self-funded DappDapp to date and now additional funding is required to increase our monthly overhead to facilitate the next stage of growth and development as we take the first version of the product to market. DappDapp founders, family, friends and staff all have skin in the game and have already invested collectively in excess of £1,25 Million with the founders financing the largest chunk.  A portion of each staff members’ remuneration is also earned through sweat equity. We have signed a deal with a VC worth £1,875 Million who are excited to have ĐASH investing alongside them. Thus, giving the project good liquidity to pull it over the line. To compliment the DappDapp vision,we’re integrating with ĐASH to complete our exciting new social media digital ecosystem.
 
We are inviting the ĐASH network not only to contribute but to purchase an equity stake in DappDapp Limited in the form of a VC. An amount of £900,000 (nine hundred thousand pounds) for an equity stake in the United Kingdom holding company.

William Honiball has already engaged with some of the ĐASH community (see dialogue annexed below)and they mention that purchasing equity is something they were looking to set up and that this will make an interesting test case. ĐASH Core Inc, can hold an option agreement until the entity is ready. A draft option agreement has been sent to CEO, Ryan Taylor and he has confirmed that it has been forwarded on to the ĐASHCore lawyers.
 
ĐASH’s Contribution for the Project:
 
1) Technology Design, Business Requirements                                    £42,000
2)IT Technology Development/Maintenance Costs                             £550,000    
3)Quality Assurance Testing (Pen& Performance                           £75,000      
4)Project Manager and Product Documentation                                       £63,000
5)Block Chain Development                                                                          £50,000
6) Marketing Costs *(£156,000  ĐASH Micro Marketing Live User Case)         £216,000
7) Legal and accounting                                                                                 £60,000
 
 
Total ĐASH Contributionfor the project:                                           £1,056,000
*MicroĐASH Marketing Live User Case (see video)                  £156,000
PurchaseDappDapp Equity                                                                          £900,000
 
Payment Time Lines
Proposepayments over 3 months (calculation at $450 per ĐASH) :
1) Dec 2017                                                      £315,315– 920 ĐASH
 2) Jan 2018                                                      £315,315– 920 ĐASH
3) Feb 2018                                       £315,315 – 920 ĐASH
 
 
DappDapp Estimated Contribution to the ĐASH project
 
1) Prior Costs already invested                                                                  £1,250,000
2) Technical Development
3) Operational Costs
4) Administrative Costs
5) Travel Costs
6) Marketing Campaigns
7) Additional Block Chain Development    
                                                                                                                                 £167,000
                                                                                                                  ____________________              
 
DappDapp’s estimated contribution to the Project    
                                                                                                                               £1,417,000
 
                                                                                                           
ĐASH Project Cost/Investment                                                                   £1,056,000
 
                                                                                                           
VC contribution over 12 months                                                                 £1,875,000
for Acquisition and Scalability Costs                                                                       
 
                                                                                                                  _____________________                                   
Total Project Costs paid by DappDapp + VC + ĐASH               £4,348,000
                                                                                                                   ____________________
 
 
 
 
Budgeted growth
 
These figures below are based on a conservative approach as we have many organizations that are eager to communicate with their customer bases on a regular basis through our public chats feature.
 
 

Applying the 80/20 rule, we believe that at least two in ten users will make at least one transaction of ĐASH through DappDapp, meaning an anticipated transaction level of two transactions for every ten registrations.
 
As shown in the chart above, this equates to around 320,000 transactions and does not account for second, third or
further transactions that users will make and the potential of adding large data bases from various organizations that have shown interest.
 
 
Advertising– Dappverts and Premium Content
 
 
Dappverts are opt-in and non-intrusive, incentivized adverts. They will be screened each time the user presses the blue
Dappvert button at the base of our menu in the app.
 
 - Every user will be given1,000 micro ĐASH (Dot)as a welcome bonus.
 - Every time a user invites a friend to download the app, the user will be awarded 1,000 micro ĐASH (Dot).
 - Every time users view a Dappvert they earn 10 micro ĐASH (Dot),along with their selected charity who will also earn 10 micro ĐASH (Dot)simultaneously.
 
There is an African saying, ‘if you want someone to start drinking CocaCola, give him one.’
Educating people starts with something as simple as purchasing a picture in a chat. What easier way could
there be than for someone to do a demonstration and say to the crowd:
 
You can try using ĐASH right now, Download DappDapp from the app stores, follow my Public Chat and then I’ll send you all a picture/video using Premium Content.

Buy the picture/video for 10 micro ĐASH(Dot) for example and you have just made your first ĐASH micro payment. ‘If you have insufficient micro ĐASH (Dot) to buy, simply view one dappvert to earn 10 micro ĐASH (Dot)!’
Visual Integration and Implementation
 



NB. Thank you for reading this and please see full ‘white paper’ for further details…
 
 
 

NB See Annexure below…
 
Annexure

 
DappDapp Co-Founder, William Honiball has engaged with some of the ĐASH community. Please see some of the
responses we have had with regards to using DappDapp as the first test case for
purchasing equity in place of a grant:
 
 
ONE:
GrandMasterĐASH said:
This is possible, ĐASH is in the process of setting up a legal entity to make such arrangements. You need to speak to core about this as it
would make an interesting test case. Also, they can arrange escrow which, given
the amount, would make MNOs a lot more comfortable.
 
DappDapp Co-Founder, Allen Schneeberger has made contact with ĐASH CEO, Ryan Taylor who has already
forwarded an option agreement to ĐASH Core lawyers to find a way to facilitate
this until the Equity entity is ready.
_______________________________________________________________________________________
 
TWO:
GrandMasterĐASH
 
Ican't comment too much about this proposal because I haven't / won't install
the app; for me, the app permission list is way too invasive. I can see why
such permissions are required but it's just not for me. But to be clear, I am excited for any messenger-like service that incorporates ĐASH.


Also,I would rename "ddapps" to something else, it just doesn't roll-off
the tongue smoothly. Elsewhere, I haven't seen a name for 0.00001 denominations
but off the top of my head, I would say "ticks" or "drops"
might be a better choice.
 
ĐASH CEO, Ryan Taylor also suggested that we should rather use ĐASH’s micro currency to reduce friction as
much as possible. We have taken this advice on board and where you see ddapp or
dapps in the app or in the white paper it will now be micro ĐASH as in
1,000,000 Dot = 1 ĐASH (Please see Video on the transaction explanation within
the app).
______________________________________________________________________________________
 
THREE:
TheSingleton said:
Regarding the length of this proposal. 1 payment is probably too much and 12 months are
definitely too long as the price of ĐASH might change drastically in that time
frame. The sweet spot I think is 3 months.

If it's actually possible for the Network to receive equity in return for our funding then this would be an easy Yes.
 
______________________________________________________________________________________
 
FOUR:
JZA said:
Could this be done through a telegram bot? There are already many QR generator bots
for IM transactions
 
Their system and vision goes way beyond chat bots. I don't know if they can compete
with Kik etc but to get some equity might be a good idea, so long as there's no non-compete agreement.
 
#33 GrandMasterĐASH, Nov 9, 2017
 
______________________________________________________________________________________
 
 

Show full description ...

Discussion: Should we fund this proposal?

Submit comment
 
0 points,4 years ago
This is a very detailed budget proposal, obviously a lot of thought has put into this.

I like the idea of a micro payment platform (DappDapp) running as a service on top of the Dash blockchain, further extending Dash own platform.
What i do not like is the central element that DappDapp in it current form could bring with it (i fear that could lead to new attack vectors) and the
impact this budget proposal has on our budget for the next three months(3x 920 Dash).

Now i understand there has been contact with the core-team, which could hopefully lead to a more acceptable and legally defined budget proposal for masternode owners to vote over.
Reply
0 points,4 years ago
Thank you for your feedback qwizzie, we will be re-submitting a proposal as i think it is a bit late for this one unfortunately.. :) I will certainly keep your suggestions in mind.
Have a fantastic day!
Reply
0 points,4 years ago
Hello Dappdapp, nice to meet the team!
I believe in your vision and your solid plan, but I think it is a lot for us to invest in now.
Good luck! Paul
Reply
0 points,4 years ago
Dear paulkuit, your feedback is appreciated and in line with many other comments.
We will come back with an adjusted proposal to give you all comfort!

We have really learnt a lot this last few weeks and i thank all the masternodes for that!

Kind regards
Will
Reply
3 points,4 years ago
It was difficult for me to understand what exactly this product does. I encourage MNO's to look over the whitepaper (much easier to read than the wall of text in this proposal page).

Also, the demo video is very informative and the app looks interesting.

In the past, the network funded ATM's and other businesses because they claimed to help grow the ecosystem. It looks like this app might do that too by making it easier to buy, earn, spend, and exchange Dash. But this proposal could also include an equity stake.

I think this should be seriously considered, but my hesitation is wondering about the future, and what if other businesses want to integrate Dash - i.e. will other "chat apps" also require/request stakes? Would that be good or bad for the network?

Evan had said in the future when the block rewards decline, returns could be made by the network investing in other types of businesses. This might be an example of that.
Reply
1 point,4 years ago
If this sum of money was for, say, Signal integration - which has 5M installs - then I would agree.
Reply
0 points,4 years ago
I'm having a problem activating my account. When I click "Retry Account Activation" nothing happens.
Reply
0 points,4 years ago
ok it works now after sometime
Reply
0 points,4 years ago
Dear ageless,
My apologies, i just saw your comment now, please feel free to add me to your contacts if you would like to test it with me.
Reply
2 points,4 years ago
***PLEASE READ

Good day All MasterNodes,

We have engaged some of you during the last 24 hours, we seem to get a common message, the majority of you like the concept and the proposal, but are not happy with the valuation.

As said to GrandMasterDash on the forum also:

GrandMasterDash said:
Sorry to say, on the face of it, it seems too expensive.

My reply:
Please don’t feel sorry, I take that on board GrandMasterDash, I would rather know the problem so I can fix it, than not know where it is.

Valuations are always the big question when talking about equity.

We initially misunderstood that it is not about equity but rather about growing the footprint, in threads higher up, it was mentioned that the equity would make it a lot more attractive even an easy yes to some.

We based the proposal on VC agreements we currently have, for obvious reasons we would rather work with a partner who shares the vision.

We now realize however, that it is much more about equity, than we initially thought, which is also fine.

We would like to make adjustments where need be, in order to get the relationship right, where ever that adjustment needs to be.

What would you say is reasonable or your "sweet spot" so to speak?

If it means we lose a bit more equity in exchange for the RIGHT Payment Platform partner, we are happy with it.


--My Question to you now, is this…

We cannot change the number of Dash asked, from my understanding. We can however change the offer and send an amended agreement to Ryan.

What % would you feel comfortable with in exchange for the investment asked?

Kind regards
Will
Reply
0 points,4 years ago
I am voting Yes but I can see that it's not that easy to know whether you will really succeed. Building the product is surely possible but that alone won't suffice to actually get a lot of users.

Maybe you because you are more used to the subject you can see that this isn't a problem but most of us masternodes have no real knowledge about the subject and just see that you want a build an app that's similar to already existing apps with the only real difference being the usage of Dash. Now for me this enough to justify voting because I would like such an app to exist. But other might just see this as a waste of money trying to capture a market that is already saturated.

I mean maybe if you provide some kind of assurance that you will reach a sufficient number of user and if not we get some of the money back that could help and prove that you believe in this project. Other than that not really sure what you could do.
Reply
0 points,4 years ago
Dear thesingleton,
You are right, getting lots of users is always the challenge,
Did you see the Texuna letter attached? They have a database of 10 million students globally and would be keen to distribute and "sell" content through DappDapp.
We also have a database from previous businesses of about 500 000 people.
These will be our first aim as it appears to be low hanging fruit.
Trust this gives a bit of comfort?
Kind regards
Will
Reply
1 point,4 years ago
If you came back with $100,000 on $450,000 valuation, I would vote for it. Best of luck.
Reply
2 points,4 years ago
As per GrandMasterDash request, please see the following:

The major differences we see with WeChat are these:

1. WeChat lets you match random people near you - Which we see as a privacy invasion. We link via phonebook
2. WeChat lets you search or shake to find other random people.. again attracts the wrong attention
3. WeChat integrates with Fiat, which is limited to in border and traditional banking barriers - We do Dash!
4. In DappDapp anyone can create a public chat quickly and easily, as apposed to this being exclusively available to larger companies etc.

As for WeChat i would not say DappDapp is better, but different, some people eat chicken, others don't.
If we can become the brand where you can get into Crypto, without having to go through exchanges, even more so if you want to get crypto, but don't have money so you can earn it through campaigns, that is incredibly valuable in our minds.

In comparison to Kik:

1. Kick has a username search feature, where i once was contacted by "candice" my wife obviously had some questions... I subsequently deleted it immediately.
2. Kik are looking at crypto, which is good, but they are doing an ICO of their own, now if you read their documentation, they are issuing trillions of coins.. i don't see how owning one could ever be as valuable as owning Dash.
3. Dash is established and growing as a major global player, being integrated with such reach brings many users on board.
4. Then Kik also has the problem of once having had a couple hundred million downloads and dropped back to about 15 million. As you all know getting a download is hard, getting one back that you've lost is nearly impossible.

Some other DappDapp features are:
1. Public Chats where only group members can talk and followers can only view.
2. DappDapp let's people get into Crypto, without the need to understand it. It is like an easy entry.
3. Followers are anonymous, which is big for education as they don't want followers to be visible to the wrong people.

Current features we are building:
1. Pin protect chats or groups. So you can choose to make your "Surprise Party" group pin protected, meaning you cannot see the chats without the pin.
2. Hidden groups, where group members are not shown to others. We had the feature requests from some moms who were organizing kids parties, they said sometimes there is a child the do not wish to invite to a birthday party, but do not want all the moms to know that one person is not invited.


I think it would be arrogant (and obviously biased) for me to say that we are better than others, but if we can get our slice of the cake and with Dash as partner, we will be really happy.

Then another one we did not touch on is twitter, i always say with them it is like writing on the wall and hoping someone walks past and read it.
Whereas with DappDapp you can create a public group, let's say the liverpool soccer team, they can have player banter and the followers can all see the conversation. Every time they "like" a comment the group earns some Dash to be used for charity etc.

Hope this helps you?

Kind regards
Will
Reply
1 point,4 years ago
Why is it valued at $20m and not $0.5m ? This has no traction whatsover, just a handful of downloads, mostly from the founders and their friends.
Reply
0 points,4 years ago
Dear Wixamlee,
Thank you for your question, as you know something is only worth what someone else is willing to pay for it.

The short answer is that it is based on a signed contracts from VC investors, thus existing willing buyer after the VC did their Due Diligence.

We really see value in the partnership with Dash and this is a starting point.

You probably know that companies in this space have been sold for upward of $20Billion in the last couple of years, in which case a ROI of 1000x, or any portion of it is fantastic.

Considering that the Dash network's main focus is on growing a footprint, for value drive and adoption, rather than realizing a ROI (return on investment). We just wanted to get to a starting point and the equity side is the "cherry on the cake".

As you can appreciate, we needed a starting point... structuring a deal with a decentralized, anonymous community is tricky :)

Going forward i'm sure there will be a better/clearer roadmap of how to do these deals.

Hope this helps answer your question.

Kind regards
Will
Reply
0 points,4 years ago
It is an astronomical valuation for a chat app without any traction. Numbers are just projections; no users here..
Reply
0 points,4 years ago
Dear Wixamlee,
I appreciate your feedback.

We have access to very big databases, please see the attached document. This is why we are appealing to Dash, to help us scale to accommodate these users both operationally and infra structurally. We have deliberately not engaged them yet for two reasons. 1. we don't want to have downloads and lose them as you know, un-managed growth is dangerous and 2, we have to solve cross border payments, which is why we engaged Dash.

Valuations are always a delicate thing and if this is the only sticky point and there is a way for us to amend this we would be open to negotiations.

We were led by our engagements to date and obviously would love to have a position that gives everyone comfort.
Reply
1 point,4 years ago
This equity deal is interesting. My main concern is competition and scaling up. This is a very competitive space (kik, wechat, obsidian, younow etc) and I would of really liked to of seen some mention of them and how you will compete and differentiate. It is, however, not a deal breaker so long as there's no non-compete clause.

Going forward, I can see you're going to need a LOT more funding so I'm wondering if dash will have the option to increase it's equity at some future date?

As an equity deal, I want to be assured of continuous quarterly updates.

I can imagine a more mature version of this being used in conjunction with tv shows (x factor etc). (though that seems a long way off)
Reply
0 points,4 years ago
Dear GrandMasterDash,
Yes Dash will have the option for sure, with non-compete and quarterly updates is a very reasonable request.

As for the need for future funds, we have built the app with revenue in mind, not to be like some of the others who have little to no revenue models. We thus believe we may require less than competitors. But would much prefer Dash as a partner and would be happy to offer Dash a position before even ever engaging other potential investors.

There may even be the opportunity to collaborate on some work with the Dash core team, which could be another exciting project on its own.
We are very open to suggestions, it is all so new for us with Dash and we look forward to learning more..

I also see xFactor and Idols, strictly come Dancing.. there are many.. I love that you share the vision.

The legal agreement is with Ryan and your/his lawyers.

I am scared of saying the wrong thing about competitors, not sure if this is allowed? (using their names etc) i did try touch in it in the video on the submission.

I am currently putting the videos into the pitch also.

Hope this answers some of your questions?

Kind regards
Will
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2 points,4 years ago
First equity stake looks interesting at least. Help us analyze how to value this kind of investment:

* How much of a stake in the "company" is it? (1%? 50%?)

* What are your current and projected revenue/income/expense figures? (Even approximate would help)

* What kind of projections of usage/income do you expect in future? (At 5000 users, you expect to make $10,000, with annual overhead of $1mil, for a loss of -$1mil // At 300,000 users you plan to break even // At 10,000,000 users, you expect net income of $10mil, and 10% will go to core/MNOs/whatever)
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2 points,4 years ago
Firstly, the model works as follows:

An advertiser/campaign manager pays in Dash for the activity, which can be seen in the Demo Video. The minimum campaign spend per user is $0.01 worth of Dash. This goes up to $1.50 worth of Dash depending on the campaign.

Then users cashing Dash out to the Block Chain we will make between 1-2% (through netting)

We have assumed the following:

Each client generates 4p per month (market research shows up to 70p per month)

Each client costs 0.05p per month to maintain

Assuming 40 000 customers by April 2018 and growth of 1.4 per month, dropping back to 1.12. This would bring us to a loss of 500k year 1 and up to 2m profit year 2.

We budgeted for 2 in 10 customers to make a Dash transaction, which will generate an additional 320 000 transactions for Dash in year 1 (minimum).

Break even is around 1.2 million low value customers or 150 000 high value customers.

As for the %, you are pretty accurate, what i can say is that we offered the same as we offered other VC's, of which Ryan Taylor has a copy of the contract and written confirmation from VC. The contract would give Dash the equity option on successful funding. I will leave disclosure of exact amounts at Ryan's discretion if that is ok.

Kind regards
Will
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1 point,4 years ago
Thank you, this info is very helpful.

Ok yes, it makes sense as you said, that equity is just the "cherry on the cake" - the return from equity would be very minimal/negligible, unless dappdapp "hits it out of the park" so to speak.

Back-of-the-envelope calculations:
* In 5 years, if DappDapp gets sold for $100 million then 2% equity would be worth $2mil. Given ~$1.5mil dash investment that's 33% ROI in 5 yrs, or less than 6% annually (not too great).
* In 5 years, if DappDapp somehow gets sold for $1 billion however, and we only had 1% equity, that's worth $10mil. That's 570% ROI in 5 yrs, or 46% annual return (more reasonable?).

What should be considered more thoroughly is how integration with this messaging app (or "Transactional Ecosystem") would affect adoption/growth of Dash. Will this contribute to the adoption of Dash? And how much is that worth?

P.S. I do prefer the name "dots" to "ddapps" or "ticks" or "drops" :)
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0 points,4 years ago
Hi henrygeorgist,

I cannot tell you how relieved i am to see your comment, i have just spent a number of hours, trying to work out how to get the MasterNodes to see the proposal.

Such a relief!
Reply
0 points,4 years ago
Now to answer some of your questions...

Firstly, the model works as follows:

An advertiser/campaign manager pays in Dash for the activity, which can be seen in the Demo Video. The minimum campaign spend per user is $0.01 worth of Dash. This goes up to $1.50 worth of Dash depending on the campaign.

Then users cashing Dash out to the Block Chain we will make between 1-2% (through netting)

We have assumed the following:

Each client generates 4p per month (market research shows up to 70p per month)

Each client costs 0.05p per month to maintain

Assuming 40 000 customers by April 2018 and growth of 1.4 per month, dropping back to 1.12. This would bring us to a loss of 500k year 1 and up to 2m profit year 2.

We budgeted for 2 in 10 customers to make a Dash transaction, which will generate an additional 320 000 transactions for Dash in year 1 (minimum).

Break even is around 1.2 million low value customers or 150 000 high value customers.

As for the %, you are pretty accurate, what i can say is that we offered the same as we offered other VC's, of which Ryan Taylor has a copy of the contract and written confirmation from VC. The contract would give Dash the equity option on successful funding. I will leave disclosure of exact amounts at Ryan's discretion if that is ok.

Kind regards
Will
Reply
0 points,4 years ago
Its for this kind of proposal that we need dash watch. Voting yes but feel incompetent to evaluate and do the DYODD necessary. But the idea of a decentralised network having stakes is fascinating.
Reply
0 points,4 years ago
Thank you for your Yes vote, i really appreciate it.

It is obviously new territory for us also, but we are excited to see how far we can go with this!

Have a great day!
Reply
1 point,4 years ago
I will have to take a proper look at this tomorrow. My initial scan of the proposal is positive, but I need to read it all properly to ensure I fully understand the value proposition of the solution. If this funding can be executed as an equity stake then it'll be a world-first I think.. Exciting!

Walter
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1 point,4 years ago
Dear walters,

Thank you for your reply.
Please ask if you have any questions along the way.

Kind regards
Will
Reply
0 points,4 years ago
Good day all,
Please vote for this proposal.
Thank you very much!
Reply