10 August 2023

Generative Art Platform Fxhash Secures $5M in Seed Funding Round Led by 1kx

The Seed Round Fxhash, the groundbreaking generative art platform and marketplace, has successfully closed an oversubscribed $5 million seed fundraising round. Spearheading this investment initiative was 1kx, an early-stage crypto-focused venture capital firm renowned for its strategic ecosystem growth investments. Founded in 2021, Fxhash has emerged as the...

Kickflow: A Crowdfunding Platform That Includes Community Reach As A Factor

Kickflow is a new crowdfunding platform that is about to launch on Tezos. Kickflow is not an ICO/ IDO platform where you will receive tokens of the funded project in return for a contribution. Crowdfunding would be purely on a patronage basis and includes community reach as a factor.

Disclaimer

Nature of Content: All content published on https://xtz.news, whether written, auditory, or visual, is for informational purposes only. Opinions expressed therein are solely those of the individual authors and do not reflect the views of XTZNews or its management.

Not Financial Advice: No content on this website constitutes investment, financial, legal, or tax advice. Users should not construe any such information as a recommendation to buy, sell, or hold any investment or security or to pursue any particular investment strategy.

Accuracy and Completeness: While XTZNews makes every effort to ensure the accuracy and reliability of information, we do not warrant or guarantee the timeliness, completeness, or accuracy of the information presented. The website may contain errors, omissions, or inaccuracies. We disclaim all warranties, both express and implied, regarding the information, including but not limited to, any warranty of merchantability or fitness for a particular purpose.

Endorsements: References to specific entities, products, services, processes, or other information does not constitute or imply endorsement, sponsorship, or recommendation by XTZNews. Blockchain technology is in a developmental phase, and the engagement with the technology and its associated entities carries inherent risks.

User’s Responsibility: Users are encouraged to conduct their own research and due diligence and to seek the advice of qualified professionals before making any investment or decisions related to content on this site. Engaging with blockchain technology, cryptocurrencies, and associated applications should be undertaken with caution, understanding the inherent risks involved.

Limitation of Liability: Under no circumstances will XTZNews or its affiliates, partners, officers, directors, employees, shareholders, agents, or licensors be liable for any direct, indirect, incidental, special, consequential, or punitive damages, including without limitation, loss of profits, data, use, goodwill, or other intangible losses, resulting from (i) your access to or use of or inability to access or use the site; (ii) any content obtained from the site; or (iii) unauthorized access, use, or alteration of your transmissions or content, whether based on warranty, contract, tort (including negligence), or any other legal theory, whether or not we have been informed of the possibility of such damage, and even if a remedy set forth herein is found to have failed its essential purpose.

Seek Independent Advice: Before undertaking any financial investments, potential investors are advised to seek guidance from independent financial, legal, and tax professionals.

Kickflow

With an exploding DeFi ecosystem on Tezos and numerous new projects, funding rounds are happening quite regularly.

There are a few crowdfunding/ ICO platforms that have launched on Tezos to provide decentralized funding rounds for new projects that are looking for funding to be able to develop their projects. But in a fast growing market, there’s room for more.

Kickflow is a new crowdfunding platform that is about to launch on Tezos. Kickflow is not an ICO/ IDO platform where you will receive tokens of the funded project in return for a contribution.

Crowdfunding would be purely on a patronage basis. Kickflow combines crowdfunding with a multiplier funding pool (explained below). Kickflow is decentralized and is managed by a DAO.

“Kickflow can conduct completely on-chain funding rounds managed by a DAO. All executive decisions are made using a token voting mechanism.”

Kickflow also allows contributions with other Tezos based tokens besides XTZ.

With Kickflow, it will be possible to increase the amount of funds that is collected through the crowdfunding round, by a method that’s called match-funding.

Several projects can participate in a match-funding round. With a healthy filled sponsor pool, funding that is collected through the crowdfunding, will be matched with funds from the sponsor pool.

This means that for every dollar that’s collected, the sponsor pool will multiply that by a certain factor. That factor can be 1:1 or lower, depending on the amount of funds that is available in the sponsor pool.

For example: If a project A receives $100 from Bob during the crowdfunding round, then it also receives an additional $100 from the sponsor pool. Project B receiving $50 from Alice would also receive $50 from the sponsor pool.

It is likely that the sponsor pool can not match the value of the total collected funds because there are not enough funds available in the sponsor pool. A 1:1 factor to multiply matching in funds is not possible in that case. In that case the funding from the sponsor pool will be divided by ratio. 

Factoring in community reach

The ideal crowdfunding platform offers people an opportunity to contribute to projects with potential. One indicator of potential is community reach.

The more people show interest, the more reach it will have on social media and the more potential users there will be for the project. So if a lot of people are contributing during the crowdfunding phase, it is considered to have a large community reach.

Kickflow uses a mathematical formula to factor this into the distribution of the sponsor pool funds. This formula influences the ratio that is used to multiply contributions with the funds from the sponsor pool.

The core idea is inspired by the concept of Quadratic Funding and The Capital-constrained Liberal Radical (CLR) mechanism introduced by Vitalik Buterin, Zoë Hitzig & E. Glen. Weyl. 

The idea is that if two projects participate in a crowdfunding round, and project A receives a total of $1,200 from 2 contributors, and project B receives $1,200 from a total of 10 contributors who have all contributed lower amounts per contribution, that project B has larger community reach.

Factoring in this data by use of CLR, would result in the fact that project A would receive 15% and project B 85% of the 1:1 ratio. (Or lower ratio if the sponsor pool is insufficiently filled.)

You can find the math and more info here

Manipulation

Match Funding in general can be manipulated though. If you want to start a project and are looking for funding, you could simply supply contributions yourself, which would be doubled by the matching pool. Basically free money.

The community reach factor could be manipulated too, by using several addresses to add your total contribution. This is an issue that is approached in several ways by Kickflow.

A cooldown period is introduced of 7 days. In that period, the contributions can be analyzed.

“Entries can be flagged and disputes can be raised in the DAO.”

If funds that are contributed by several addresses, but originate from a single address, manipulation is suspected. This process will be finetuned over time.

You can read a discussion on this topic on Agora here.

Full workflow of a Kickflow crowdfunding round

– Sponsors fund a sponsor pool using a stablecoin. [10 days]

– Projects could join the rounds by making a returnable security deposit and start accepting community contributions, in tez & FA1.2 compliant tokens. [30 days]

– The system enters a cooldown period and contributions are no longer included in the CLR match. During the cooldown, round entries can be flagged and disputes can be raised in the DAO if a collusion pattern is detected in the contributions. Thereafter, the disputed project can be voted against and disqualified from the round. [7 days]

– The payout period begins, during which entries can retrieve their CLR match payout from the sponsor pool. [30 days]

DAO

The decentralized governance system for changes in the Kickflow protocol works by voting. Users that own the Kickflow Governance Token (KFL) can vote and their vote counts by ratio of the amount of tokens they hold. A proposal can be made on which holders can vote. Some examples of proposals include:

– Proposal to change DAO parameters like — voting period, quorum votes, proposal threshold, etc.

– Proposal to mount a funding round contract. Each round is handled by a different contract, which must be approved by the DAO before it can allow entries.

– Proposal to set the CLR match ratios of the entries in a funding round.

– Proposal to disqualify a round entry that has violated the rules of the ecosystem.

Upgradability is one of the most important aspects of Kickflow. For this reason, every aspect of Kickflow can be upgraded and adjusted. Every round is handled by a fresh contract that must be approved. This allows for feature addition and changes in the funding round logic.

Disclaimer

Nature of Content: All content published on https://xtz.news, whether written, auditory, or visual, is for informational purposes only. Opinions expressed therein are solely those of the individual authors and do not reflect the views of XTZNews or its management.

Not Financial Advice: No content on this website constitutes investment, financial, legal, or tax advice. Users should not construe any such information as a recommendation to buy, sell, or hold any investment or security or to pursue any particular investment strategy.

Accuracy and Completeness: While XTZNews makes every effort to ensure the accuracy and reliability of information, we do not warrant or guarantee the timeliness, completeness, or accuracy of the information presented. The website may contain errors, omissions, or inaccuracies. We disclaim all warranties, both express and implied, regarding the information, including but not limited to, any warranty of merchantability or fitness for a particular purpose.

Endorsements: References to specific entities, products, services, processes, or other information does not constitute or imply endorsement, sponsorship, or recommendation by XTZNews. Blockchain technology is in a developmental phase, and the engagement with the technology and its associated entities carries inherent risks.

User’s Responsibility: Users are encouraged to conduct their own research and due diligence and to seek the advice of qualified professionals before making any investment or decisions related to content on this site. Engaging with blockchain technology, cryptocurrencies, and associated applications should be undertaken with caution, understanding the inherent risks involved.

Limitation of Liability: Under no circumstances will XTZNews or its affiliates, partners, officers, directors, employees, shareholders, agents, or licensors be liable for any direct, indirect, incidental, special, consequential, or punitive damages, including without limitation, loss of profits, data, use, goodwill, or other intangible losses, resulting from (i) your access to or use of or inability to access or use the site; (ii) any content obtained from the site; or (iii) unauthorized access, use, or alteration of your transmissions or content, whether based on warranty, contract, tort (including negligence), or any other legal theory, whether or not we have been informed of the possibility of such damage, and even if a remedy set forth herein is found to have failed its essential purpose.

Seek Independent Advice: Before undertaking any financial investments, potential investors are advised to seek guidance from independent financial, legal, and tax professionals.

Upload Article

Complete the submission form, which includes fields for your name, contact information, a short author bio, and the title of your article. Submit your Word document as a word doc file. If you encounter any issues during the submission process, please contact our support team for assistance at [email protected]. We encourage all aspiring contributors to read and understand our submission guidelines and editorial policy before submitting.

Hidden
Hidden
Accepted file types: jpg, jpeg, png, Max. file size: 128 MB.
Banner Image
Accepted file types: jpg, jpeg, png, Max. file size: 128 MB.
Image
Accepted file types: jpg, jpeg, png, Max. file size: 128 MB.
Image
Accepted file types: pdf, doc, docx, Max. file size: 128 MB.
Submit Article: Suitable Formats = PDF, WORD
By Uploading an article, you are accepting all to all copyright and information that is to the best of your knowledge true and accurate.
Agree(Required)

Other News

View More

Oxford 2 Upgrade for the Tezos Blockchain: Private Smart Rollups, Easier Baking, new Timelocks 

Tezos, a leading blockchain platform renowned for its self-amending capabilities and community-driven governance, has successfully activated Oxford 2, its fifteenth core protocol upgrade. The Oxford 2 upgrade includes enhancements to Smart Rollups and chain security and ensures Tezos remains at the forefront of blockchain innovation.

Read More

Tezos Blockchain Enhances SaaS: Transforming Company Register Management with Izikap

Nomadic Labs recently spotlighted the launch of Izikap, a novel SaaS platform developed by the Xelians group. This platform, operating on the Tezos blockchain, represents a significant advancement in the digitalization and management of company registers. The introduction of Izikap marks a paradigm shift from traditional paper-based systems to a more efficient, digital, blockchain-powered approach.

Read More

Etherlink: The Enshrined Layer 2 EVM Smart Rollup Is Set for Mainnet Launch in March 2024

Etherlink, the Tezos blockchain’s latest Layer 2 solution, is set to redefine the landscape of decentralized applications (DApps) with its upcoming mainnet launch in March 2024. This EVM-compatible, optimistic rollup distinguishes itself from other external Layer 2 platforms like Arbitrum, Optimism, and Polygon, due to its unique enshrinement within the Tezos blockchain.

Read More