W12 - is an open protocol for creation and execution of milestone based smart contracts. The protocol consists of smart contract templates (no programming skills required), DAO governance and a decentralized oracles network, that controls execution of the project roadmap.
Such solution protects any fund contributor from intentional SCAM and unintentional failure, consequently brings trust and transparency between projects and token buyers.
The fundraising campaign may be of any type: Charity, ICO – both utility and security, Crowdfunding and any other crowd sourced fundraise and governance.
Fundraisers set up a DAO, publish a roadmap and work in according to it. The Oracles or community of token buyers check if the campaign is reaching the milestones and release funds in tranches, only when the milestones are met.
The W12 protocol is designed to be easily integrated into any existing business, platform or organization. Inside of W12 ecosystem any of the parties can easily set up a DAO of the required type: contributor, receiver, fund or supplier. In addition, W12 provides a token sale platform, through which projects can sell their tokens and easily launch fundraising campaigns based on the W12 protocol.
- Enhances early-stage project investment yield more than tenfold through the purchase of
- tokens and reduces risks for investors.
- Refunds up to 95% of funds invested in unrealized project to investors.
- Provides the possibility of limiting the sale of tokens by early-stage investors on exchanges
- immediately after an ICO to prevent token price drops (when the project activates the Token
- Simplifies the private investors’ choice of projects and the transfer of funds to trust
- Allows projects to quickly attract financing without initial costs or any special technical
- Creates infrastructure for the decentralization of capital and establishes a new standard for safe
investment in projects.
Decentralization, Blockchain, Cryptocurrencies and ICOs
The Blockchain technology (distributed ledger) gives humanity the unprecedented opportunities for
- Eliminates the need to trust either party;
- Decentralises the data;
- Protects digital assets;
- Does away with intermediaries;
- Automates processes and minimises fees; and
- Facilitates smart contract execution.
One of the most vibrant applications of blockchain technology was the creation of cryptocurrencies, for
example, Bitcoin. Attempts to create non-state currencies were long before the advent of the blockchain
technology, but they had an issuer and the need to trust it the funds; hence, they were not widely used.
Unlike the ‘centralised’ traditional currencies, cryptocurrencies have become popular because:
- they have limited emission (which is ensured by the blockchain technology)
- they are cryptographically secured
- It is impossible to limit their turnover
- all transfers are recorded in an open registry, and everyone can see the flow of the funds.
The model for attracting financing through the ICO was invented by developers who needed resources to
create cryptocurrencies. They sold a part of not yet created cryptocurrency to a wide range of persons
and spent the collected funds on further development. In terms of attracting a large number of investors,
it was reminiscent of an IPO (Initial Public Offering), hence the name.
Now, the term ICO is understood as the sale of tokens (cryptographically secured digital assets) for
the purpose of raising project financing funds. Most tokens are currently being issued on Ethereum
(a platform for creating blockchain-based decentralized online services that use smart contracts).
The Ethereum platform makes it possible to create a smart contract that will issue tokens using any
necessary logic. A token can be:
- a security (for example, share or bond) equivalent a product token (gives the right to exchange a
token for a product or service)
- a product token (gives one the right to exchange a token for a product or service)
- a utility token (which has functionality within a system)
- cryptocurrency (a means of payment)
Typically, the emission of tokens is limited and they are “tied” to one of the project parameters (for
example, profits). As this parameter value grows, so does the value of the token, thus making it attractive
At the moment, any business has the technical capacity for issuing its own tokens for the purpose of
decentralizing the raising of a large number of investors’ funds, and the rights to any asset can be
tokenized. All this opens up new avenues for the development of the digital economy.