Project Selection mechanism
Current IDO launchpads do not have a general mechanism for selecting projects for raising funds. They are so-called centralised as do not take their investors’ opinion on whether or not a project should hold sales or not. They lack the basic “trustless” ideology.
Bullstarter is proud to create its own unique way of making decisions regarding the selection of projects. This unique and organised way of selecting projects for IDO is known as Compound Selection Model.
- A project fills an application providing basic details necessary and asked for. Initially, it will be free and later there will be a nominal fee for filling it up.
- The team will then validate all the details. If the project is good enough, then it will be selected for the next stage, which is the live AMA round.
- In this Live AMA round, there will be an investor and our team panel which will listen to the project’s team and this AMA will be streamed online. Investors will include top venture capitals, KOLs and influencers. (Some confidential questions won’t be streamed).
- Our community could watch this AMA session and then through our governance model vote on whether they are interested in investing in these projects or not.
- The governance model will work in the following way :
- Each $BST staker will have a certain voting power known as “KRAZ”. Let’s suppose, there are 5 stakers and they have 15, 12, 10, 9 and 7 KRAZ respectively. If the first two stakers vote yes and others vote no, the net will be calculated as the following: net KRAZ effect / avg voting power = (+15+12-10-9-7)/ ((15+12+10+9+7) / 5) = 1/11 = 9.09%. This is known as the general vote percentage.
- If the ” net KRAZ effect” comes out to be negative, it will be taken as 0 and then the project will simply be ruled out.
- Each of the panellists will have a single vote of yes or no. Let’s suppose, there are 5 panellists and they vote yes, no, yes, yes, no. Thus, 60% vote is affirmative. This is known as the exclusive vote percentage.
- Compound vote percentage : (general vote percentage + exclusive vote percentage)/2. In case of the above example : (9.09 + 60)/2 = 69.09/2 = 34.55%
- If the Compound vote percentage is greater than 50%, then the project will be selected, else it will be rejected.
- Each staker can also provide feedback on why they are accepting or rejecting this project. All this feedback will then be passed to the project along with the wallet address of the users who gave feedback. The above governance model will decide whether the project will hold its ICO or not.
- The community has the equal power to vote on the selection of a project. They are not driven by the launchpads’ decisions.
- The projects' team can interact with top venture capitalists and KOLs who can help their project/idea reach further.
- The project will have a great summary of their vision which will help them to the vast majority of audiences and bring in major mainstream interests.
- It will bring out the true essence of decentralisation which the current launchpad ecosystem in the crypto industry lacks.
- Venture Capitals looking for investment opportunities to invest in will also get benefitted from this.
- This model is a revolution when it comes to project selection. Selecting a project for IDO is the most crucial task a launchpad has to do and our model makes it a lot easier and removes the FUD(Fear, Uncertainty and Doubt) layer that lies in it.