The FundRequest business case
Open source software has grown exponentially over the past decade thanks to platforms such as Github and StackExchange. These platforms have created a marketplace for like-minded developers to gather around, co-create and innovate with one goal in mind, to work on the things they love. Every day new technologies are proposed and developers flock together to work on the new flavor of the month.
The massive growth rate of open source software didn’t go unnoticed and companies started to leverage technologies developed by these communities. As a consequence companies became more dependent on the goodwill of the developing community. Red Hat recognized the pain and jumped on the opportunity to support enterprise adoption of open source software by offering monthly service level support licenses and certifying open source products. For a long time both open source and enterprise support models co-existed nicely and it’s been a good ride for all of us.
Karel, our CEO, however wasn’t satisfied and felt left out. Karel is an entrepreneur with his own consultancy firm and is a DevOps engineer at heart. He uses open source software tools to make a difference for the enterprises he supports but he often gets disrupted in his work and turns to the DevOps community for support. One of the worst cases he encountered was when he had a blocking issue while using Jenkins (Jenkins is an open source automation server to support continuous integration and incremental software development). Karel raised an issue with the Jenkins community and hoped to receive a fix or at the very least an answer. Days turned into weeks and weeks into months. 1 year later and his ticket is still unresolved and he has abandoned hope that his issue will get resolved any day soon.
With the rise of Ethereum and blockchain technology in general the landscape has changed yet again and we believe we can move one step further and support open source development with enhanced decentralized funding. FundRequest offers the users of open source communities the ability to fund open issues on any project and to reward the people that are contributing their free time and effort to support open source software. Both open source and blockchain technology are here to stay and FundRequest aims to provide premium support.
When Karel explained his vision last November the rest of the team quickly understood the value proposition of his idea. We built a website, wrote a draft whitepaper and developed an MVP in the form of a demo video. The response was overwhelmingly positive so we decided to move forward with the project and develop an ICO-model to fund our ambitions.
FND-token as an investment token
At first we wanted to create a token that gives the token holders/investors a ROI based on a percentage of a funded issue. We worked out the financials and with our assumptions it seemed viable to start a business supporting the token model. At every milestone we kept validating our assumptions with other expert advisors. We got to a point where we could hire expert financial advisors specialized in tax and legal issues and they’ve determined that we could risk paying a 30% tax before distributing any profits to FND-tokenholders. Since tax and legal issues are currently ambiguous we don’t want to take any chances with people’s hard earned cash so we abandoned the whole idea of using the FND-token as an investment token and went back to the drawing board.
FND-token as a value token
We adapted our token model to become a value token instead. Backers of the FND-token can use it to fund open source issues on the FundRequest Platform and will do so because they believe in the project, team and in the value proposition and thus the token value of FND will rise in ratio with other crypto pairs after launching the service. By creating a value token instead of an investment token we are following the best practices of successfully launched ICO’s such as Gnosis and ICONOMI and Brave browser’s Basic Attention Token. Details can be found in the new version of our white paper (v3.0) to reflect the changes of our ICO model.
Without too much details let’s delve into the broad topics of how we plan to launch an ICO:
- The ICO will last for at least 3 hours: We want to give each investor, innovator or early adopter an equal chance to invest in our platform.
- The ICO will last for 2 weeks max: The minimum funds required are very low in compared to past ICO’s therefor we believe that two weeks is enough to raise our funds
- The ICO will have a hidden cap:FundRequest will abide with a hidden cap. All profits exceeding the hidden cap during the first 3 hours of the ICO will be utilized to fund additional features. The core team will develop some of these features, other feature requests will be transferred into GitHub issues and we will then use our own platform to fund the development of these features. We will enable carbon voting so the token holders can choose what additional features should be developed relatively to the amount they have invested.
Some ideas to kick off:
- Instead of funding issues on Github, why not add the possibility to fund a project or a competition?
- Let’s fund questions on StackExchange
- Why not develop a JIRA plugin to fund User Stories, Bugs and Change requests?
Before launching any ICO we plan to launch a pilot version on the Ethereum testnet, to build the FundRequest platform and integrate with existing open source platforms. We hope to expand our services and pivot to seamlessly integrate with any platform.
We continue to refine our strategy to asses possible integrations with new blockchain tech assets such as the Bancor Protocol to allow direct trading of crypto-assets without passing an exchange such as Kraken or Coinbase. Next to funding issues with crypto assets we will allow transfers of non-cryptocurrencies to fund issues on the FundRequest platform.
Are you interested to learn more?
Come on visit our new website fundrequest.io and read the updated white paper (v3.0). Our just send us an email, firstname.lastname@example.org, and get invited to our slack channel.
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