DropDeck claims to offer an exceptional, less costly and less disruptive funding option than a token sale for most of fundraising start-ups & SMEs which are not suitable to release tokens nor run a token sale undertaking.
Unlike other platforms, Drop deck provides a detailed and transparent scoring/ranking method to save time and lessen dangers their funders.
DropDeck is a financing platform which runs on the Ethereum blockchain because it requires this blockchain's attributes like smart contracts, payment, consensus mechanism and also its own digital token termed DDD (Decentralized DropDeck).
The results are 1) fundraising companies are as correctly scored and ranked as potential so that funders can put their money into optimum usage, and 2) all of participants in the ecosystem are financially incentivized to assist funders get rewarded, so that funders can keep funds and attract more funders to join the ecosystem.
Firms from all geographies can submit information into the platform according to standardized funder-centric formats, or local brokers known as Hunters can help accomplish that. Funders screen fundraising businesses based on scores, and may select local brokers known as Delegates from the geography of the interested company to assist in additional due diligence.
Following conducting full due diligence, the funders are ready to make the loan. The Delegate is demanded to enter into a legal arrangement with the financed company in order to apply the repayment. Funders subsequently make a payment in DDD to a Smart contract.
What is the DDD Smart Contract?
This smart contract includes the funders, the financed company, and the Delegate, so that the Delegate only gets paid if the financed company pays back. The Delegate receives either a percentage of the repayment amount, or a fixed amount held in escrow by the smart contract.
The loan can be paid back in the kind of simple amortization with regular payments, or through royalties or with other amortization programs for companies who are not generating consistent cash flow yet.
The DropDeck reputation system motivates funded companies to pay back in order to attract further funding from the future, also encourages Delegates to protect the funders' pursuits so as to attract more customers.
What is the Decentralized DropDeck Token?
The Decentralized DropDeck Token (DDD) will be issued and distributed to serve as the ultimate reward for all participants at the funding value chain (Delegates, Hunters, Evaluators, etc.).
Considering that DDD's value reflects the general success of funders and finance firms on DropDeck, each participant must collaborate in the best interests of every other (e.g. evaluate businesses correctly, enforce repayment) and also of DropDeck (e.g. donate data to create scoring calculations smarter) in order to grow the worth of the rewards.
DropDeck helps funders allocate funds to the most deserving businesses while being educated of those companies' “Possible scores”, which reflects the degree of danger and possible concerning profitability. For the underwriting part of the loan, the fundraising business and the funders can propose the terms (interest rate, royalty, program, etc.).
DropDeck also makes hints with its own A.I. algorithms. One or many Delegates unite information to make final suggestions. The funders and the funded company who have “skin in the game” will come to a consensus to choose a proposal and also the based Delegate to execute the conditions.
Drop Deck Summary
Drop Deck provides a means for investors and creditors to make the payment of small loans to both individuals and businesses. The success of the DDD will come down to the amount of funding it gains, as well as the market appetite for ICOs and its future profitability.
More details about the DDD token can be viewed on Drop Deck’s white paper.