Proposal “kriptomobile_120k_dash_phones_q1_2019“ (Completed)Back
| Title: | KRIPTO MOBILE 120,000 Dash Enabled Phones Q1 2019 |
| Owner: | kriptomobile |
| Monthly amount: | 220 DASH (6581 USD) |
| Completed payments: | 3 totaling in 660 DASH (0 month remaining) |
| Payment start/end: | 2019-01-16 / 2019-04-15 (added on 2019-01-11) |
| Final voting deadline: | in passed |
| Votes: | 0 Yes / 0 No / 0 Abstain |
Proposal description
PROPOSAL DESCRIPTION
Kripto Mobile Corporation is submitting our first DAO funded proposal to continue our marketing and growth in Venezuela. This will be our first time submitting a proposal, we welcome your questions and comments.
Cost Summary
The first release of the KRIP phones included a paper wallet with a small amount of Dash inside the box. This proposal is to further fund these paper wallets for 3 more months (February, March, April) at a rate of 0.005 Dash per phone.
We are currently estimating sales at 40,000 phones per month, equating to 200 Dash per month.
In addition, we are proposing the continuation of the current billboards that are in place. These currently cost USD $1,500 per month for 3 billboards, or a total 3-month cost of 52.94 Dash at a Dash/USD FX rate of $85.
In total, the funding request is for 220 Dash per month for 3 months.
Cost Break Down (Price - DASH/USD FX = $85)
- Paper Wallets - 40,000 Phones at 0.005 Dash per phone per month = 200 Dash per month for 3 months = 600 Dash for 120,000 phones
-Marketing and Promotion - 3 Billboards at $1,500/17.64 Dash per month for 3 months = $4,500/52.94 Dash for 3 months = 52.94 Dash
- Proposal submission = 5 Dash
- Total Requested Funding = 219.31 Dash per month round up to 220 Dash per month for 3 months = 660 Dash
Background
We first met the Dash Core Group team in early 2018 and officially launched our exclusive partnership and the KRIP mobile phones on August 27th, 2018. The Dash Core Group team has provided extensive detail on the background and strategy we are pursuing in a recent medium article: [color=#1155cc]https://blog.dash.org/kriptomobile-dash-venezuela-use-case-7bb582528258
[/color]
It is very detailed but we encourage everyone who wants a deeper understanding to give it a read. In summary, we announced that the first stage of our partnership has resulted in 66,000 wholesale sales to the LATAM region, with over 53,000 of these to the Venezuelan market. Additionally, the ecosystem on the phone has expanded from Uphold and Bitrefill to also include DiscoverDash and an expansion with Dash Text for our K1 mobile phones - the non-smartphone model.
The Product
KRIP offers a line of products for different segments and users in emerging markets. These smartphones are not designed to compete with the latest product offering from expensive brands (as that is not our target or demographic), we have a target selling price of under USD $100.
With the exception of the K1 which has a separate promotion with Dash Text, all of our phones come preloaded with 4 Dash apps (Uphold, Dash wallet, Bitrefill, and DiscoverDash) and paper wallet preloaded with Dash, so users can easily become acquainted with Dash and have all the necessary components of a growing ecosystem.
The Proposal
We are seeking 220 Dash per month for 3 months in order to fund the following:
- 600 Dash: 40,000 units of new phones per month with an amount of 0.005 Dash in each in the paper wallets for a cost of 200 Dash per month.
- 52.94 Dash: 3 Billboards co-branded Dash/KRIP for 3 months. This is the total cost including setup.
- 3 Billboards with a cost of around USD $1,500 per month each (Including printing and set up) for a cost of 52.94 Dash. We are constantly evaluating better prices and options.- 5 Dash proposal submission amount.
All 40,000 phones funded from the DAO will be for to Venezuela. Further, Dash Core Group has agreed to continue in its earlier role as the one who physically holds and funds the paper wallets - we are never in control of the funds.
DCG will only fund the paper wallets once they are sold, manufactured and shipped to Venezuela, thus ensuring funds are only going to actual phones physically going to the market.
Should we sell more than 40,000 phones in a given calendar month, we will fund the paper wallet from our own pocket. Our expectation is that we should sell a total of 120,000 funded phones for the 3-month period at 40k phones/month.
If the monthly sales volume is less than 40,000, we will continue to fund only those phones which are sold, and DCG will maintain custody of the excess funds for future orders. This ensures that 120,000 phones will still be funded, even if the timelines are longer than expected.
The Promotion and Support
Through a range of partnerships and agreements with stores, distributors and wholesalers we have positioned the Krip/Dash brand in over 2,0000 stores all over Caracas and the next 7 largest cities in Venezuela, Miami and other locations making sure we give a dominant positioning to Dash brand elements, which brings cryptocurrency closer to a large number of smartphone customers.
As of today, the Dash/Kripto Mobile partnership has physical advertising presence in the largest electronic malls in Venezuela (City market and Metrocenter) and many other electronics stores and marketplaces as can be seen in this social media post (1) and the attached pictures.
Through social media (Own website and Twitter and partners media outreach as well as Dash PR actions) we have maintained direct contact with users and potential consumers in order to provide guidance on how to use Krip smartphones as a gateway to Dash.
Our PR reach has allowed us to bring attention to how Dash is getting mainstream usage by being featured in the front page of travel magazines such as Avior(2) travel, and being featured in over twenty radio and TV shows in Venezuela, including Mujeres en Todo(3) on national TV, Caraota Digital(4) on radio and many more.
In order to train our distributor’s network on the phones features and how to use the included app ecosystem, we have trained their salesforce, using tools such as personal sessions to the wholesalers, and YouTube videos such as the one in this link(5) to massively train the salesforce indirectly.
Through agreements with the Dash Caracas team, we have participated in their events such as conferences and workshops, and have also done mass company sales that include training of over 1,000 people in Caracas for a private Kripto Mobile customer that wished to receive cryptocurrency usage training (6).
Through agreements with Dash Help and Dash Merchant we have managed to train and support dozens of stores directly and push promotion into the hands of hundreds of customers and potential customers.
Our Contribution to the Partnership
While we are asking for the network to help fund the paper wallets, we would like to highlight where we have also contributed to the success of the partnership:
- Exclusive relationship with Dash
- Over the course of the relationship, we have currently contributed 72.5 Dash towards the original 66,000 paper wallets.
- Graphic design and all needed activities for the KRIP phone box and inclusion of Dash logo in all the product.
- Incremental cost to manually load Uphold; Bitrefill on KRIP phones. This process has now been automated which eliminates the cost moving forward.
- Design and creation of co-branded signage in retail locations- We are currently selling the KRIP mobile phones at a wholesale price that averages a low double-digit discount from our normal pricing/margins. Because discounts can vary by distributor, we’re unable to share exact details due to the sensitivity.
- Of course, our largest investment is in the design, manufacture, and sale of the KRIP mobile phones.
About Us
Headquartered in Miami, we have more than 20 years of mobile phone manufacturing and distribution across Latin America, having previously launched BLU and YEZZ. We are a B2B non-carrier mobile phone manufacturer, targeting lower cost markets who are not able to afford the latest high-end smartphone.
While the initial scope of our partnership is on the Venezuelan market, we have relationships with a broad range of distributors across Central America, Colombia, Paraguay, Argentina, and Mexico, to name a few of our major markets. KRIP phones are shipped exclusively to South America at this stage.
You can watch our elevator pitch video
Thank you for reading this proposal and we are looking forward to responding to your questions and comments.
Pre proposal posted here: https://www.dash.org/forum/threads/preproposal-kriptomobile-1st-network-proposal-to-the-dao.42952/
The Kripto Mobile team
Links:
1) https://twitter.com/KriptoMobile/status/1069709826652033024
2) https://twitter.com/KriptoMobile/status/1052214173873057793
3) https://twitter.com/KriptoMobile/status/1040620824837935105
4) https://twitter.com/KriptoMobile/status/1040649868258275328
5) https://www.youtube.com/watch?v=Gj9X1Zbnr8A
6) https://twitter.com/KriptoMobile/status/1059130495685017604
Kripto Mobile Corporation is submitting our first DAO funded proposal to continue our marketing and growth in Venezuela. This will be our first time submitting a proposal, we welcome your questions and comments.
Cost Summary
The first release of the KRIP phones included a paper wallet with a small amount of Dash inside the box. This proposal is to further fund these paper wallets for 3 more months (February, March, April) at a rate of 0.005 Dash per phone.
We are currently estimating sales at 40,000 phones per month, equating to 200 Dash per month.
In addition, we are proposing the continuation of the current billboards that are in place. These currently cost USD $1,500 per month for 3 billboards, or a total 3-month cost of 52.94 Dash at a Dash/USD FX rate of $85.
In total, the funding request is for 220 Dash per month for 3 months.
Cost Break Down (Price - DASH/USD FX = $85)
- Paper Wallets - 40,000 Phones at 0.005 Dash per phone per month = 200 Dash per month for 3 months = 600 Dash for 120,000 phones
-Marketing and Promotion - 3 Billboards at $1,500/17.64 Dash per month for 3 months = $4,500/52.94 Dash for 3 months = 52.94 Dash
- Proposal submission = 5 Dash
- Total Requested Funding = 219.31 Dash per month round up to 220 Dash per month for 3 months = 660 Dash
Background
We first met the Dash Core Group team in early 2018 and officially launched our exclusive partnership and the KRIP mobile phones on August 27th, 2018. The Dash Core Group team has provided extensive detail on the background and strategy we are pursuing in a recent medium article: [color=#1155cc]https://blog.dash.org/kriptomobile-dash-venezuela-use-case-7bb582528258
[/color]
It is very detailed but we encourage everyone who wants a deeper understanding to give it a read. In summary, we announced that the first stage of our partnership has resulted in 66,000 wholesale sales to the LATAM region, with over 53,000 of these to the Venezuelan market. Additionally, the ecosystem on the phone has expanded from Uphold and Bitrefill to also include DiscoverDash and an expansion with Dash Text for our K1 mobile phones - the non-smartphone model.
The Product
KRIP offers a line of products for different segments and users in emerging markets. These smartphones are not designed to compete with the latest product offering from expensive brands (as that is not our target or demographic), we have a target selling price of under USD $100.
- K1 – Our non-smartphone model but full featured for those who need only the basics
- K4 –Target phone for Venezuela. Entry-level smartphone with a 4-inch screen, 5MP camera, and 8GB ROM memory
- K5 – 5-inch smartphone with 5MP camera and 8GB ROM memory
- K55 – 5-inch smartphone upgraded with 13MP camera and 16GB ROM memory
- K6 - Our flagship model. A 5-inch smartphone with 13MP camera and 16GB ROM memory
With the exception of the K1 which has a separate promotion with Dash Text, all of our phones come preloaded with 4 Dash apps (Uphold, Dash wallet, Bitrefill, and DiscoverDash) and paper wallet preloaded with Dash, so users can easily become acquainted with Dash and have all the necessary components of a growing ecosystem.
The Proposal
We are seeking 220 Dash per month for 3 months in order to fund the following:
- 600 Dash: 40,000 units of new phones per month with an amount of 0.005 Dash in each in the paper wallets for a cost of 200 Dash per month.
- 52.94 Dash: 3 Billboards co-branded Dash/KRIP for 3 months. This is the total cost including setup.
- 3 Billboards with a cost of around USD $1,500 per month each (Including printing and set up) for a cost of 52.94 Dash. We are constantly evaluating better prices and options.- 5 Dash proposal submission amount.
All 40,000 phones funded from the DAO will be for to Venezuela. Further, Dash Core Group has agreed to continue in its earlier role as the one who physically holds and funds the paper wallets - we are never in control of the funds.
DCG will only fund the paper wallets once they are sold, manufactured and shipped to Venezuela, thus ensuring funds are only going to actual phones physically going to the market.
Should we sell more than 40,000 phones in a given calendar month, we will fund the paper wallet from our own pocket. Our expectation is that we should sell a total of 120,000 funded phones for the 3-month period at 40k phones/month.
If the monthly sales volume is less than 40,000, we will continue to fund only those phones which are sold, and DCG will maintain custody of the excess funds for future orders. This ensures that 120,000 phones will still be funded, even if the timelines are longer than expected.
The Promotion and Support
Through a range of partnerships and agreements with stores, distributors and wholesalers we have positioned the Krip/Dash brand in over 2,0000 stores all over Caracas and the next 7 largest cities in Venezuela, Miami and other locations making sure we give a dominant positioning to Dash brand elements, which brings cryptocurrency closer to a large number of smartphone customers.
As of today, the Dash/Kripto Mobile partnership has physical advertising presence in the largest electronic malls in Venezuela (City market and Metrocenter) and many other electronics stores and marketplaces as can be seen in this social media post (1) and the attached pictures.
Through social media (Own website and Twitter and partners media outreach as well as Dash PR actions) we have maintained direct contact with users and potential consumers in order to provide guidance on how to use Krip smartphones as a gateway to Dash.
Our PR reach has allowed us to bring attention to how Dash is getting mainstream usage by being featured in the front page of travel magazines such as Avior(2) travel, and being featured in over twenty radio and TV shows in Venezuela, including Mujeres en Todo(3) on national TV, Caraota Digital(4) on radio and many more.
In order to train our distributor’s network on the phones features and how to use the included app ecosystem, we have trained their salesforce, using tools such as personal sessions to the wholesalers, and YouTube videos such as the one in this link(5) to massively train the salesforce indirectly.
Through agreements with the Dash Caracas team, we have participated in their events such as conferences and workshops, and have also done mass company sales that include training of over 1,000 people in Caracas for a private Kripto Mobile customer that wished to receive cryptocurrency usage training (6).
Through agreements with Dash Help and Dash Merchant we have managed to train and support dozens of stores directly and push promotion into the hands of hundreds of customers and potential customers.
Our Contribution to the Partnership
While we are asking for the network to help fund the paper wallets, we would like to highlight where we have also contributed to the success of the partnership:
- Exclusive relationship with Dash
- Over the course of the relationship, we have currently contributed 72.5 Dash towards the original 66,000 paper wallets.
- Graphic design and all needed activities for the KRIP phone box and inclusion of Dash logo in all the product.
- Incremental cost to manually load Uphold; Bitrefill on KRIP phones. This process has now been automated which eliminates the cost moving forward.
- Design and creation of co-branded signage in retail locations- We are currently selling the KRIP mobile phones at a wholesale price that averages a low double-digit discount from our normal pricing/margins. Because discounts can vary by distributor, we’re unable to share exact details due to the sensitivity.
- Of course, our largest investment is in the design, manufacture, and sale of the KRIP mobile phones.
About Us
Headquartered in Miami, we have more than 20 years of mobile phone manufacturing and distribution across Latin America, having previously launched BLU and YEZZ. We are a B2B non-carrier mobile phone manufacturer, targeting lower cost markets who are not able to afford the latest high-end smartphone.
While the initial scope of our partnership is on the Venezuelan market, we have relationships with a broad range of distributors across Central America, Colombia, Paraguay, Argentina, and Mexico, to name a few of our major markets. KRIP phones are shipped exclusively to South America at this stage.
You can watch our elevator pitch video
Thank you for reading this proposal and we are looking forward to responding to your questions and comments.
Pre proposal posted here: https://www.dash.org/forum/threads/preproposal-kriptomobile-1st-network-proposal-to-the-dao.42952/
The Kripto Mobile team
Links:
1) https://twitter.com/KriptoMobile/status/1069709826652033024
2) https://twitter.com/KriptoMobile/status/1052214173873057793
3) https://twitter.com/KriptoMobile/status/1040620824837935105
4) https://twitter.com/KriptoMobile/status/1040649868258275328
5) https://www.youtube.com/watch?v=Gj9X1Zbnr8A
6) https://twitter.com/KriptoMobile/status/1059130495685017604
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Discussion: Should we fund this proposal?
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Physical infrastructure puts Dash at a massive advantage relative to competing cryptocurrencies. There are not many projects even capable of doing it, and I believe Dash is the only one that can do it in a decentralized way.
And what do the phones cost and why not charge an extra $0.40 per phone to cover the cost of the paper wallet?
We understand that $0.40 US does not sound like a lot of money to many people, however, as pointed out above, due to the current economic situation in Venezuela, you could make a small purchase, like a coffee. While it does mean more, and certain items (like fuel) are very cheap, it’s not enough to buy dinner, for example. Together with DCG, the goal is introduce people with a small amount of Dash.
We feel that if we provide too much Dash, the risk is that people will simply convert to USD and not support the Dash ecosystem. By providing a small amount of Dash, meaningful but not a lot, the hypothesis is someone who owns this small amount of Dash will be incentivized to acquire and further spend as the ecosystem both on the ground and the KRIP mobile phone is further built out.
We believe the results, as shared by DCG in the recent medium post, show positive indicators: Bitrefill and Uphold are seeing positive increases and users are spending the Dash received. https://blog.dash.org/kriptomobile-dash-venezuela-use-case-7bb582528258
> And what do the phones cost and why not charge an extra $0.40 per phone to cover the cost of the paper wallet?
With as much as $0.40 you can live in Vz like God in France, a millionaire lifestyle! *joking*
No seriously, in Vz you can probably buy a 100 gallon of gasoline or diesel, if not even more than that.
It sounds ridiculous, but its true...
And regardless I don't really understand why this should come from the treasury.
We’ve signed a multi-year exclusive agreement with DCG - no other crypto is supported beyond Dash. Of the 66,0000 phones already sold, we’ve funded 36,000 phones (0.002 Dash) using our own funds at a total cost of 72.5 Dash. This was the equivalent of almost $12,000 US with the exchange rates at the time. Additionally we have purchased a few hundred units of co-branded merchandise like hats, shirts, etc… that are used as promotional items with our retail partners and the Venezuela community. We have also utilized our own funds to include Dash branding on the phone box and also the costs associated with pushing app updates to the phone.
These updates are part of our strategy, most recently with the push update for DiscoverDash and enhancing the ecosystem.
If the paper wallet is lost or discarded, then that user is no longer able to claim the free Dash. We are unable to provide a replacement unfortunately.
We try to minimise this risk by working closely with the staff at our partners’ retail outlets as well as the Dash Help Me team so that the front line can help educate the customers.
We agree that Dash.Red could provide an alternative method to the paper wallets. Through DCG, there have been early discussions with the Dash.Red team to explore ways we could partner, but at this time the paper wallets are the chosen distribution method because it also provides an introduction to QR scanning and the experience of using your new KRIP phone in a way that’s similar (if not identical in many cases) to the experience that customer will have with spending their Dash with merchants.
We would like to add that DCG is currently tracking wallet activity, and have communicated the early results in the recent medium post.
The one thing I'd say that paper wallets have over redeemable certificates is it educates people about the utility and function of paper wallets, which they could make use of in the future, but I also recognize that this is perhaps a heavy topic for first time users and a redeemable voucher might be more familiar to them.
1. Given the volatility of the crypto market, what are your plans if the price of Dash should wildly fluctuate? Will the amount of Dash offered to users fluctuate based on this, and if so, how?
2. What efforts are being made to track whether users are redeeming the Dash that is offered in these promotions?
To answer your questions:
1) Volatility is an important issue, however, we feel the volatility for a Venezuela audience is less of an issue due to the unfortunate situation with the Bolivar and it’s higher volatility. Legally, we are unable to advertise or promote the US$ value of the Dash within the Venezuelan market, so we only speak to the quantity of Dash instead. This provides some flexibility as it means we don’t risk angering the authorities as well as miscommunicating the value that’s included on the paper wallet (and potentially upsetting customers). If the Dash value moves up/down in a substantial way, we’ll need to look at it on a case-by-case basis. For example, if Dash shot up in value - there could be the opportunity to reduce the amount of Dash and fund additional phones.
2) While we work closely with DCG, technically it is them who are managing the loading and monitoring of the paper wallets. We are able to track the movements of the paper wallet and have provided high level detail around the spend percentage seen so far in the recent medium post. Further identification on where those funds are being spent is a goal, however we’re proceeding cautiously as we want to manage both the sensitivity and security of our customers against the desire for greater insight on their consumer spending behavior. We also track this by the different mobile phone model and market, so we can have an understanding of what is working well and what may have opportunity to improve. Additionally, Dash Help Me tracks customer service tickets which we monitor and track to ensure our customers are satisfied. To date, those queries have been very low volume - an average of 40 per month so far since we launched. Finally, we are working with partners that we’ve loaded onto the KRIP phone (Bitrefill/Uphold) who are tracking and sharing data on performance. This was also shared within the recent Medium post as well. https://blog.dash.org/kriptomobile-dash-venezuela-use-case-7bb582528258
1. That seems about as reasonable an approach as we can hope for given the circumstances of the market. Good.
2. Glad to see you're keeping tabs on this as much as is both feasible and sensible. As long as we're able to capture some of this data, we'll be able to better assess the viability and value of continuing this promotion. Seems like things are on the right track for the present. Glad to continue supporting this push.