RootProject claims to be the world’s first effectively tax-subsidized cryptocurrency. Find out how RootProject plans to restructure capitalism and end extreme poverty today in our review.
What Is RootProject?
RootProject is a non-profit organization powered by a cryptocurrency. Found online at RootProject.co, the project promises to “restructure capitalism” and “end extreme poverty.”
The pre-sale for the organization’s ROOTs token is taking place starting on August 7.
Some of the key features of RootProject, along with the cryptocurrency, include a laborless crowdfunding system and a pension fund that generates interest.
The central role of RootProject is to crowdfund community projects. That crowdfunding uses the ROOTs cryptocurrency (in addition to USD wages) to ensure fair payouts and efficient project completion. We’ll talk more about how RootProject’s crowdfunding platform works below.
How Does RootProject Work?
The core of the RootProject platform is the crowdfunding platform.
The RootProject crowdfunding platform looks similar to other crowdfunding platforms. You can browse a selection of local projects through the online interface or mobile app. RootProject is a dual-facing app. Users can propose a new project, or browse through existing projects.
The unique part of the RootProject crowdfunding platform is that the creator of the project doesn’t have to follow through with the entire project. As an example, RootProject’s whitepaper describes how someone might have an idea for a community project when walking home – like a wall garden on her street-facing building, for example. The project’s creator can donate the project amount herself, or seek crowdfunding to reach the budget.
Donations are received. Within 30 days, the project will either be funded, or funds will be returned to users. After the threshold is reached, the project is again reviewed and confirmed. If necessary, the project founder is notified when any permits or other legal permissions are needed from the state or other regulatory organizations.
The budget of the project is structured to give it the best possible chance of success. The available budget for the project is 87% of total donations. 3% of donations are reserved for credit card and handling fees. 10% goes to direct purchase of ROOTS tokens on the open market, which increases token demand.
Once the project is confirmed and approved, RootProject assigns a project foreman (a paid employee or contractor) as well as a budget for materials, tools, and labor. That foreman puts a team together that can finish the project within a set period of time.
RootProject, Taxes, and the “Looming Regulatory Threat” for Cryptocurrencies
Crowdfunding and community-building work is just one aspect of the RootProject platform. Another aspect is the looming regulatory threat over the entire cryptocurrency community. This threat is outlined in the RootProject whitepaper:
“Everyone in the cryptocurrency community knows that at some point the US government will step in, potentially with draconian regulatory action.”
However, RootProject claims that its ICO is protected against these regulations (regardless of what they are). That’s because RootProject’s ICO is a not-for-profit, non-equity crowdfunding project where no equity or control is given away, and no equity-like product is sold.
That’s just one aspect of RootProject’s regulatory appeal, however:
“Think more broadly about the community, though: Which would you like to be the public face of cryptocurrencies when regulators start to act: A set of blogs that are impenetrable to the mainstream consumer (voter), or people on the street, wearing bright shirts with a coin logo, working to better the community and give suffering people real help?”
Ultimately, RootProject sees itself as an agent of positive change in the cryptocurrency community. Today, some people see cryptocurrencies as a shady, semi-legal, online payment system used for drugs and darknet purchases. RootProject will show people it can be a force for good by empowering communities and funding community projects.
RootProject consists of three core features, including:
1) Laborless Crowdfunding
RootProject has created a new crowdfunding model that generates supply and demand for community projects. Project initiators don’t need to complete the project or know anything about cryptocurrencies. Donors get tax deductions, while socially-visible projects enhance reputations for corporations.
A portion of each project’s crowdfunded proceeds go to token purchases and drive currency demand. The remaining proceeds go towards material, wages for one supervisor, and wages for those stuck in poverty. The supply of the currency is hard-capped, which means each project reduces liquid token supply. Overall, RootProject describes it as “a very profitable cryptocurrency”. With supply diminishing, the remaining tokens continue to grow in value.
3) Pension Fund And Interest Alignment
Hourly wages are paid in USD. However, workers are also paid in cryptocurrency. Cryptocurrency worth half of the day’s earnings is deposited into a medium-term fund that functions similar to a pension fund. This reduces the liquid token supply even further. The ultimate goal, as the RootProject.co official website explains, is “aligning the interests of investors and society’s most vulnerable.”
Who’s Behind RootProject?
RootProject was co-founded by Chris Place and Dr. Nicholas Adams Judge.
Chris is a cofounder of Prepd and an alumnus of the Y Combinator program. Prepd has generated $5 million in sales in its first 1.5 years. Chris is from London, but divides his time between New York and Hong Kong.
Dr. Judge, meanwhile, is a political economist who received his PhD from the Department of Political Science at the University of Wisconsin-Madison.
You can get in touch with the company by email at [email protected]
The RootProject ICO
RootProject’s initial coin offering (ICO) will see the release of ten billion ROOTs ERC20 tokens. These tokens will be created on the Ethereum blockchain during the ICO campaign. No more ROOTs shall ever be created.
The ICO is scheduled for August 7. 20% of the total supply of tokens will be sold to crowdsale participants. The ICO will last for 30 days, or until two billion ROOTs are sold.
Each ROOTs token will be sold for 0.0001 Ether. Based on current valuations, that put the hard cap for the crowdsale at between $45 million and $50 million USD.
Tokens will become transferable within 3 weeks of the completion of the ICO.
A limited pre-ICO began on July 10.
40% of ROOTs tokens will be released in the future, starting six quarters after the completion of the ICO. Tokens will be released at a rate of 3.33% per quarter.
You can view further details of the ICO at the official RootProject whitepaper.
RootProject isn’t the first company to discuss how cryptocurrencies can be used to create a more egalitarian society. We’ve already seen how cryptocurrencies and blockchain technology can decentralize authority and boost economic mobility. Together, these features help people at the margins of society to reap benefits.
RootProject has taken that idea to the real world in an effort to reduce poverty. Groups can use RootProject and its cryptocurrency to launch projects and initiatives at home – or in other parts of the world.
It’s a combination of crowdfunding, real-world charity, and cryptocurrency payments. You can visit RootProject.co to learn more about the upcoming project.