Fundition: Decentralized Crowdfunding On Steem Blockchain?
Crowdfunding is not new. However, due to the technological advancement of the last few years, people are able to find funds for projects with ease. With crowdfunding, it eliminates the need for an intermediary. Today, there are hundreds of platforms, which allow for crowdfunding throughout the world. The continued creation of new platforms shows that existing ones have some flaws.
The Future Of Crowdfunding
While the normal models of investment still flourish, crowdfunding has changed the ecosystem of finance in the recent past. This has been especially so for small players in the market. Thus far, 16 billion has been raised via crowdfunding platforms.
Since 2015 to 2017, most countries have seen a 900% growth in alternative funding. This confirms that crowdfunding is a sustainable way of funding projects. On the three largest platforms, there have been 182 monthly visitors thus far. This figure continues to grow.
The Issue Fundition Seeks To Solve
The existing ecosystem for crowdfunding hinders projects in various ways. On the current platforms, there is great pressure on founders. A project only receives funding when its set target is reached. If the target is not hit, they will get nothing. This has led to many project founders asking for much less than they actually need. This way, they hope to hit targets before they are out of time.
Another issue on all major platforms is that promises are brokers. In most cases, backers have no protection. In some cases, founders run away with funds and fail to fulfill their promises. Sometimes, the product they deliver performs poorly in the market.
In the current platform, there is an unintentional bias to large projects. Besides that, founders need to reside within the applying country if they hope to get funds. This leads to a lot of paperwork, which is a turnoff for small founders with little capital.
Fundition Crowdfunding On Steem Blockchain Benefits
On the current platforms, projects only get 60 to 80 percent of the money they collect. Fundition hopes to change that. Most platforms provide almost zero assistance on the technical aspect. However, they expect to get a huge fee. The Fundition project is different; it will not take any fees. To achieve this, they will utilize the proof of merit, which will run on the Steem blockchain.
The Fundition Solution
Because of the reliability, security, and immutability of the blockchain, Fundition will use it to provide their solution. This platform will make it possible for ordinary individuals with no technical knowledge to start using the technology. They will be able to use it to give and receive tokens to support projects without any fees. The founder can choose to convert all their funds to fiat without learning about the blockchain or crypto.
Fundition gives numerous benefits to users including access to the large Steem apps user base. This user base is growing exponentially every month. Backers will get rewards for giving. The platform will also be gamified within the platform to ensure interaction and a revenue stream for those involved.