Pledgecamp is looking to disrupt the billion-dollar crowdfunding via blockchain and smart contract integration. Recently they released the beta version of their product. In this article, let’s familiarize ourselves with the platform and then take a look at the beta product.
Backer Insurance: Pledgecamp’s X-Factor
Pledgecamp’s tagline is to “take the worry out of crowdfunding,” which they are attempting to do via smart contracts. Smart contracts are self-executing, automated agreements between two parties, which will enable them to:
- Directly connect with each other without going through a middleman.
- Allows for step-wise execution, meaning, each statement in a smart contract can only be executed, once the previous one has been executed to completion.
Smart contracts allow Pledgecamp to execute a game-changing innovation called “Backer Insurance.”
What is Backer Insurance?
Pledgecamp allows backers to enter into a smart contract with the creator. The backers will then contribute their funds, a percentage of which is held in escrow within the contract. These locked-up funds are called “Backer Insurance Funds.”
These funds will be released to the creator only when they meet certain milestones. These milestones are pre-defined before the funds are raised so that the expectations between creators and backers are clear from the beginning. Backers will then verify the milestones through a democratic vote. If the milestones are not met, then the backer insurance funds are refunded to the backers. Otherwise, it is credited to the creator.
This simple innovation will provide the backers with enough security (or insurance if you will) to trust the ecosystem. More backers will mean more funds flowing into the system, which will significantly benefit the creators.
Pledgecamp – Team and Advisors
Pledgecamp is blessed with one of the most impressive teams in the crypto space. Their team includes top crowdfunding experts with over 25 years of collective experience as well as high-profile advisors in technology, business, and blockchain. The team has previously raised millions of dollars on Kickstarter and has become among the top 1% most-funded experts on the platform. Heading the team is Jae Choi, who is responsible for Pledgecamp’s vision/mission, strategy, business development, and finances.
Pledgecamp is also backed by an incredible team of advisors, which include people like Randi Zuckerberg. Randi Zuckerberg is an entrepreneur, investor, bestselling author, and tech media personality. She is the CEO of Zuckerberg Media, editor-in-chief (EIC) of Dot Complicated, and former Director of Market Development at Facebook. She is also the founder of Sue’s Tech Kitchen, an innovative tech-themed dining concept for families.
Pledgecamp still opted for a dual-token system. The two tokens used by Pledgecamp are Pledge Coins (PLG) and Camp Shares (CS).
PLG and CS co-existing
PLGs are utility tokens which are mainly used for:
- Funding projects.
- Paying for various services.
CS, on the other hand, are non-exchange tokens which cannot be used for paying for anything in the ecosystem. One can only gain CS after staking PLG tokens. Owning CS tokens will give the community members the right to become a “Moderator.”
A Moderator is responsible for maintaining the overall health and well-being of the Pledgecamp ecosystem by removing behavior violations. Behavior violations include and are not limited to listing scam projects, exhibiting abusive behavior, and engaging in illegal activity.
Before we proceed, keep these points in mind about the Camp Share tokens:
- CS is produced at a 1:1 ratio to the amount of PLG staked by the user.
- A minimum balance of 10,000,000 CS is required to achieve Moderator status.
- Obtaining CS will burn the equivalent amount of PLG from the ecosystem. By burning PLG, Pledgecamp is reducing the overall supply of the tokens that can actually be used as a utility token. Reducing the supply drives up the overall demand for PLG.
Reward system of CS tokens
Being a Moderator will allow them to earn rewards from the ecosystem. The total campaign listing fees generated within the system is shared among the Moderators as a reward. The reward is distributed as per the following formula:
The Moderators get a reward which is directly proportional to the amount of CS tokens that they possess. So, not only are Moderators incentivized to keep their CS tokens, it actually works in their interest to lock up more PLG tokens and maintain a higher number of CS.
As such, these two tokens follow well thought out tokenomics to provide the best value possible to the ecosystem.
Taking a look at Pledgecamp’s Beta Version
Let’s look at Pledgecamp beta from the following perspectives:
From the backer’s perspective, this is what the platform will look like:
Potential backers can easily sort projects to find what they’re looking for: trending, recently launched, almost funded, recently funded, featured storefronts, etc. You can also dive further into individual categories like art & design, technology, fashion, games, music, etc.
You can see previews of the project, including the title, fundraising goal and current stats, any special badges, and the amount of Backer Insurance/Protection offered. The higher this number, the more the insurance offered to backers.
- Clicking on the project will give you a detailed look at its features like image, video, funding stats, overview, etc.
- If needed, users can go through alternate feature images or lifestyle product photos in a horizontal format, as well.
- Pledgecamp’s cart works similarly to your standard e-commerce cart. Users can easily add on variations of items (different sizes, colors, etc.), add on accessories, and mix and match quantities of items to meet their individual needs.
- There is also a referral tool that the backers can use to spread the word about the project. Backers will be rewarded with PLG tokens for a successful referral.
- Users can also report the project if it violates guidelines. Upon reporting, the Moderators are notified to check up on the project.
- Checkout could be done via credit card or the PLG tokens.
Since backer insurance is the main USP, let’s take a look at how the voting process will work.
- The page also details the milestones that the creator has set for himself. If these milestones are not achieved in time, then the backer can apply for a refund.
- If over >51% of the backers vote to cancel, then the backer insurance will be refunded to all the backers.
- The creators can check their dashboard and keep track of the total confidence level in real-time.
- If a creator wants to list their project, then they will have to interact with Pledgecamp’s Project Builder system.
- The system will ask for the project name, type, and a few eligibility questions to get started.
Up next, they will need to fill out some basic details such as:
- FAQ and Bonuses sections which are optional but recommended to fill out.
- The Creators will now be prompted to enter high-level details such as the project title, short description, main project image, video, etc.
- They can also set advanced settings like “Social Media Image.” or the marketing image they would like to appear when users copy the campaign URL into social media sites.
- A unique feature is the enabling of referral links, which the backers can use to spread the word.
- Finally, they will have to define their fundraising goal, the length of their campaign, optional Google Analytics pixel code, and whether or not they would like to raise post-campaign funding, i.e. accepting pre-orders.
Up next, the creators will need to define the project overview.
- This section will have the story behind the creator’s project. Pictures and videos can be added via a simple drag-and-drop process. It is quite similar to Medium.
- If help is required, guides and tips written by successful crowdfunding creators are available.
Now, the creator will define one of the most critical components of the campaign, the “Rewards” section.
- This section will allow backers to choose the products they will receive in exchange for their contribution.
- Pledgecamp will allow creators to upload clear descriptions and images of their products.
- The first step of reward creation is to fill out the basics – title, image, price, delivery date, and quantity available (if limited).
- Optional variations of the product can also be defined (eg. different colors or sizes).
The creators can also define quantity/bundle rules.
Quantity and Bundle rules offer even more customization options that will set the creator’s project apart.
- Quantity rules: It allows creators to offer discounts on shipping when multiple products are purchased in the same order. Eg. Buying an entire football kit as opposed to just a jersey.
- Bundle rules: Allow creators to offer custom pricing when customers order larger quantities of the product. Eg. Buying 10 jerseys instead of 1.
This is another incredibly important step – defining the timeline.
- Here the creator defines the development timeline of the product and the final delivery date of the rewards to the backers.
- This where the creator defines the milestones they need to meet to satisfy the backers and receive the backer insurance.
- A milestone can be added by defining the date range and providing a description of what will be completed in this step.
- Each milestone will also include the percentage of Backer Protection to be unlocked. This amount should be carefully calculated to be how much the creator needs to achieve that specific milestone.
- If a creator sets a high enough backer insurance, the amount of listing fees that they will have to pay Pledgecamp will decrease.
- This section includes basic account information.
- The creator will give their personal and banking information so that they can receive their funds properly after their campaign.
- They can also perform the required KYC protocols with Pledgecamp’s partner Veriff.
#6 FAQ and Bonuses (Optional)
- Allows creators to leverage Pledgecamp’s community by offering paid tasks.
- The task could be – providing product ideas, marketing translations, completing surveys, etc.
- Creators define the task, any rules and restrictions, payment terms, and quantity limits.
- Successful completion of the task rewards the user with PLG tokens.
- The FAQ section can allow creators to ease the user experience of their backers by providing answers to specific critical questions beforehand.
- The creators will be able to continuously update this page as and when they get newer questions.
Pledgecamp provides users with a “Preview” feature to look over all the data in unison prior to publishing it.
Pledgecamp has the technology and team needed to take over the crowdfunding space by storm. Going over their beta version, they have built their interface in a simple yet elegant way. Every feature that they have provided makes perfect sense. While it is still early days to say for sure if they are going to be a mega success or not. However, things are definitely looking pretty good so far.