WeTrust Releases CryptoUnlocked, a ‘Proof of Impact’ Fundraising Platform Using Augur Pools
WeTrust is a public blockchain based on the Ethereum network and mainly deals in building decentralized applications for the financial world. It has recently launched a fun-raising platform called CryptoUnlocked, which would be milestone-driven. The platform would make use of Proof-of-impact consensus.
The CryptoUnlocked platform would leverage the decentralized oracle powers of Augur and allow the fundraising pools to be allocated to developers or different organizations based on their real-world activities and progress. Thus, the name proof-of-impact.
CryptoUnlocked promises to be among the very few fund-raising platforms which makes accountability of an organization a very important aspect for raising funds on the platform. With the fundraising platform, the investors get a sense of security as the platform also promises that if the aspirational goals of the fundraising are not met, the investors would get their investment back. The conditional contribution was definitely a missing link in the modern day fundraising techniques and CryptoUnlocked promises to bring that change to the system.
How CryptoUnlocked Works
An Augur market arbitrates the resolution of a publicly verifiable milestone, such as the release of Prysmatic Labs’ Beacon Chain testnet. In this case, the Augur market serves as an oracle for whether or not Prysmatic Labs has delivered Beacon Chain testnet, a highly anticipated milestone for the Ethereum community.
Once the campaign is listed on the platform, and since it's based on the Ethereum network, all the Ethereum stakeholders would like to contribute if they believe in the project. Once the required funds are met, all the ether for the project are locked in a smart contract and the fund is only released once the Augur market is resolved. The Final outcome would be either a Yes, that the market has resolved or a No if it is not resolved.
When the Conditions are met and let us suppose the Prysmatic Labs are able to launch their public Beacon Chain testnet by a certain date. Now all the funds saved in the smart contract would be forwarded to the Prysmatic Labs.
If the conditions are not met, then the contributors and investors have the option to claim back their investment. This creates a win-win situation for both the parties, the investors and fundraisers who would never have to fall for a scam. If the project gains enough momentum, then we might see it setting a trend for future fundraising.
The creators behind the project concluded,
“Some of the most important projects in the digital economy are the most chronically underfunded. And beyond the open source pillars upon which cryptocurrency is founded, we believe that CryptoUnlocked can one day be useful in philanthropy, campaign finance, business, and the general funding of public goods. Many of you have expressed the desire to create your own fundraising campaigns based on real-world events, and we may soon enable anyone to create their own. “
CryptoUnlocked promises to bring in necessary transparency into the crowd funding scene and hopes to end the array of uncertainty surrounding the modern-day fundraising techniques.