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district0x / district-proposals

Proposals for new districts to be built by the district0x Team.
https://vote.district0x.io/
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DP82: ICOmarket - a Decentralized Underwriter and Reputation for ICOs #82

Open adambenayoun opened 7 years ago

adambenayoun commented 7 years ago

Name

ICOmarket - A Decentralized Underwriter and Reputation market for ICOs

Updates

Date Comment
August 12 Creation of District Proposal
August 13 Edited Underwriting services

Purpose

With the proliferation of ICOs, it is almost impossible for a crypto investor to stay up to date and decide where to invest next. ICOmarket is a decentralized underwriter and reputation market for ICO that will provide underwriting services for trusted ICO and conduct extensive research on upcoming ICO.

Description

ICOmarket is a decentralized marketplace that will provide a stamp of approval for selected ICO in the form of underwriting services and research/reviews.

Listing of ICO and research

ICOmarket will provide a basic listing of all upcoming ICO with information. ICOmarket researchers can provide extensive research and reviews on selected ICO. Each ICO will be automatically assign a score based on research, reviews and ICOmarket users who are interested in the ICO.

Underwriting services

Top ranked ICO will have the ability to signal to ICOmarket if they would like to use their underwriting services. ICOmarket would provide funding for a certain number of tokens offered in the ICO in exchange for a discount of some sort. ICO may also chose to lock underwriter for a certain period - after which underwriter can offload tokens via exchanges in a controlled manner to not inflate or deflate prices.

Funding for ICOmarket could be provided using the following methods:

Each ICO would have to submit a proposal for underwriting services with the discount, number of tokens offered, locking period etc - ICOmarket would have to stake DNT or ICOmarket tokens to vote for their ICO.

slack username: adambenayoun

rongomaib commented 7 years ago

ICOmarket would provide funding for up to 5-10% of tokens offered in the ICO

don't think you need to be so specific tbh.

ICOmarket members would pay a monthly recurring fee in DNT to view information about ICO

not gonna work. someone is just going to leak/sell the info.

ICOmarket could decide to take a % of the stake if ICO is successfully selected and later redistribute the tokens to the members who staked their tokens (that would deter users to stake an ICO they don't completely trust).

Conflict of interest. I see many issues here.

adambenayoun commented 7 years ago

@imdying -- Thanks for the feedback - I've put together this proposal as a draft so there are a lot of things that I am not clear on yet - so your feedback is super valuable.

  1. Agreed - I don't need to be specific. I will change that
  2. Maybe. A membership was only one of the options that would allow to fund the underwriting services - not sure what other viable way to fund this (maybe the ICO is the fastest and easiest?)
  3. Could you please clarify what kind of conflict of interest you're seeing? Will help me rethink this part.
rongomaib commented 7 years ago

what kind of conflict of interest

District which is meant to be independently verifying ICOs stands to profit from people buying in. There is an incentive to be dishonest in the appraisal of ICOs.

check out ICO alert. they are pretty much on top of this. ICOs pay to be checked out / audited.

adambenayoun commented 7 years ago

Thanks @imdying - I see what you mean.

I was not looking to build an unbiased listing of ICO but rather have ICOmarket pick its favorite and underwrite them - in the process listing the ICO and showing reviews of each one would help the community of investors.

In a sense, the ICO that would get underwritten by ICOmarket are the one the community think they will be the most successful and will probably favorite them anyway (by staking them during the voting process). There's no better signal than underwriting an ICO by putting your hard earned $$ behind the project.

I think there might be cases where an ICO will have a future but a certain group in the community will decide to "ruin" it by giving it a low score for political reason. This can be addressed if the community is big enough and each independent member has an equal vote in the process.

My only worry is that there might be a part of the community that bands together to approve a shitty ICO and underwrite it (because the discount is really lucrative) and then dump it right after - and by this basically violate the trust of the rest of the community. However this can be prevented if we set min-max rules to discount, lock-in periods and other that would eventually make "gaming the system" unprofitable.

Thanks!

zynis commented 7 years ago

Perhaps you want to check out wings.ai ... sometime during the beta any project issuing a coin on Ethereum, or specifically any district, as is in this particular case, can interface with the wings dao contracts to get evaluated (spam/scam filter), get assigned a crowd valuation and receive fundraising or book building services from the dao members. If members (wings holders) approve a shitcoin project that scams people the underlying coin should take a hit via free market.

We're happy to build in any integrations with district0x smart contracts, or any other ethereum based project for that matter, so long as the user demand is there, of course.

Bradymck commented 7 years ago

I added the audit tag to highlight some crossover with other proposals that may be an opportunity for collaboration.

Bradymck commented 6 years ago

Hey @adambenayoun Just wanted to reach out and say hi. I was thinking about your proposal here, there are projects starting to do analysis of ICO's and white papers. I linked your proposal on the Reddit thread: https://www.reddit.com/r/district0x/comments/7sxp0y/dnt_has_the_most_unique_whitepaper_by_similarity/

Also, the crypto community is starting to dig in and find interest in token curated registries (TCRs) similar to what we will be doing for our District Registry.

I'll be going to EthDenver this coming month to meet a lot of people interested in TCRs. A lot of projects will be springing up with this model. I would suggest attending, watching the live stream, or at least noting who the speakers at this event. Many are digging into this concept and I feel that TCRs could play a large role in your idea here. You may even be able to get a hackathon project going at an upcoming event to build your idea out if you get to know some of the people into these ideas.

Just a thought, hope all is well.